Friday, October 24, 2008

Why Are the Financial Markets Still Falling?

Dear Friends,

This is the biggest problem facing ALL financial markets right now, from stock markets all over the world, to Gold Market, to Oil and other Commodities Markets. The cash redemptions by the rich and margin calls due to falling prices, are forcing some of the Hedge Funds to sell at low prices, causing the markets to go even lower.

There is no way to assess when the selling will stop, from a statistics viewpoint, because there is no such data freely available, and in any case, by the time the funds report their position, it will be a number of days old.

Thus, we can only rely on Technical Analysis as the only "feel" for the market situation.

Best wishes,

Ooi

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