Sunday, January 30, 2011

Jewish Holidays in 2011

Just a reminder. During the "no work permitted" Jewish holidays, the market for equities, forex and others will significantly drop in volume. Significant drop in volume could dramatically skewed price movement.The Jewish holidays for 2011 could be found in:

http://www.chabad.org/calendar/holidays_cdo/aid/672022/jewish/2010-Holidays.htm

Cheers !

PersianCat

A 10% correction in the making?

The general market has been on a bull run without much rest since Sep 2010. It is due for a correction. Analyst is now calling for a 5-10% correction. Looking at the charts, it looks like a good possibility that it might happen. Technically, the DOW index just tested 12,000 level (a logical resistance level) before it started the drop last Friday. Likewise, the S&P 500 index also touched the 1,300 level (a logical resistance level) before it also dropped last Friday. The drop in the markets on Friday does not mean that the markets are starting to correct. However, it seems like a good logical point to start to correct.

The political crisis in  the Tunisia, Egypt and perhaps elsewhere in the Middle-East might create the catalyst for the correction. Initially, the worries about Egypt was that shipping through the Suez canal could be disrupted because of the turmoil. The worries worsen with the scenario painted that if the turmoil spreads to the countries in the Persian Gulf, then oil supplies from the Persian Gulf might be disrupted. That is a bigger worry!





Regardless of what is going to happen, I am just playing with the flow. I have shorted ES (S&P 500 futures) on Friday. I also left some SPY Puts over the weekend.

Cheers !

PersianCat