All European stock markets declined Monday with banks in free fall as investors fretted over a second British government bailout of the sector in just over three months. Royal Bank of Scotland shares fell 60 percent after it announced massive losses.
Everyone is eagerly waiting for Obama's inaugural speech tonight. You can be very sure that he is not going to announce anything more than expectations and DOW to fall after the announcements after an initial jump. Same happened when $700 billion package was announced.
After the announcement DOW went DOWn to test the lows of 2002.
From last week the volume and turnover is getting lower and lower day-by-day with no clear trend. This may continue till Wednesday, after the Obama's inaugural speech one can see the trend. On every rise punters are writing higher CALLs.
Asian markets are trading in deep red and are likely to give up entire gains of last 2 days before the new US president delivers his speech. The record low volume was just an upward correction to the 5 days of fall of last week and the next fall is going to be sharp firstly to breach december lows to be followed by a steep fall to breach october lows. For indian markets, the open may be in line with asian markets and NIFTY may test 2777 which if breached there is every possiblibity of further slide towards 2750 or lower levels.
Traders may continue to hold shorted futures of january and february series. Since indian maarkets rised much more than asian markets during the last 2 trading sessions that too with RECORD LOW VOLUME, THE FALL WHEN IT COMES MAY BE MUCH SHARPER.
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