[INTRA-DAY ACTION]
Today will be huge. The UK market has ceased trading due to "Technical Difficulties", after the market smashed through the roof and the financials opened up 12% on Fridays close. There are no technical difficulties here, all that has happened is that the City Boys have panicked, it is blatantly obvious they do not have a clue what to do without the US markets holding their hand.
This level of corruption is a disgrace. The system has been down for about 4 hours, which is totally unacceptable - can you imagine the news in America if the NYSE and NASDAQ just "stopped working" after a massive bull rally? It wouldn't happen. But we all know how dodgy the FTSE and City are - and if you are still prepared to trade the UK market after this, you are a complete idiot.
The Fannie Mae and Freddie Mac bail-outs will ease a lot of the credit crunch problems, but essentially shareholders will lose equity in these companies. However they will no doubt rally as people close shorts and fools take positions. I would be looking to trade smaller stocks who sell mortgages to these guys. The financials should rally hard today stateside, and most likely everything else.
However, after this rally, gaps will need to close and resistance will need to be re-tested as support, so I expect some very bearish action in the near future.
As for the UK.. well, the US market opens at 14:30 and the pre-market is underway. I would not be shocked to see those "Technical Difficulties" being fixed and all OK between 14:15 and 15:00.
Update 15:15
Pfff.. good luck trading this!
Update 16:00
Insane.. absolutely insane..
UAUA 1min chart, down 65% in 5 minutes, then up 100% within the next 4 minutes.
Rumour has it they are about to go bankrupt.
Also the UK market has opened, an hour later than I thought though.
This level of corruption is a disgrace. The system has been down for about 4 hours, which is totally unacceptable - can you imagine the news in America if the NYSE and NASDAQ just "stopped working" after a massive bull rally? It wouldn't happen. But we all know how dodgy the FTSE and City are - and if you are still prepared to trade the UK market after this, you are a complete idiot.
The Fannie Mae and Freddie Mac bail-outs will ease a lot of the credit crunch problems, but essentially shareholders will lose equity in these companies. However they will no doubt rally as people close shorts and fools take positions. I would be looking to trade smaller stocks who sell mortgages to these guys. The financials should rally hard today stateside, and most likely everything else.
However, after this rally, gaps will need to close and resistance will need to be re-tested as support, so I expect some very bearish action in the near future.
As for the UK.. well, the US market opens at 14:30 and the pre-market is underway. I would not be shocked to see those "Technical Difficulties" being fixed and all OK between 14:15 and 15:00.
Update 15:15
Pfff.. good luck trading this!
Update 16:00
Insane.. absolutely insane..
UAUA 1min chart, down 65% in 5 minutes, then up 100% within the next 4 minutes.
Rumour has it they are about to go bankrupt.Also the UK market has opened, an hour later than I thought though.
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