Monday

Impact of Swine Flu Outbreak

Post a Comment April 27, 2009 – 6:59 am |   | Permalink |  Print This Post |

Futures are all heavily in the red with DJIA down 1.3% (7960), FTSE down 1.7% (4095) and DAX down 1.3% (4598). An over-reaction and easy scapegoat to take markets lower. The fact that its occuring preopen puts us on alert: if this decline is real (as the technical indicators suggests) then shorting at this level will significantly handicap our gains. We prefer sit out for now, with existing shorts. This could be a one direction move day - ie open in the red, and continue to decline all the way to market close (very rare).

Natural Gas is getting slaughtered now at 3188 (sigh, the price we pay to test our silly theories out for public interest). Looking at the charts, hope is not lost yet, as it may make a miraculous recovery. Since markets are diving, its not winter in the northern hemisphere, we do not expect this recovery to be news-driven. For those in the same situation, we plan to go down with the ship Titanic style.