WorldlyViews.com

Under this title, worldlyviews.com, shall be putting up views on the markets as I see it...

Jan 13th....there are ominous signs as seen in Oct /Nov period, when dow fell to 7500 levels....led by strains in the financials, 4th quarter results are expected to show how bad the economic scenario in the developed markets are & could form the basis for massive selling & new lows in the markets......
markets tested the 9000 levels & various views were getting formed that markets were forming a positive foundation & with Obama coming in & announcing a new stimulus, the markets could gain in the short term.
That positive formation is definitely broken.....markets could not hold onto the 9000 levels & momentum has decisively turned around...
Last time around, markets just about held to a huge support level - 7800 on the Dow & 750 on the S&P....With further bad news from Banks (watch our JPM cues, there could be -ve surprises), Autos, telecom & Retail companies, markets could test those previous lows.
These levels ofcourse are huge support levels....if they break, it could really be a free fall. I would bet that such a scenario would happen sometime this year. Not sure if it would happen so early in the year - maybe a fresh Govt policy whether stimulus plan or other Fed solution may help in holding to these levels. If not, then brace for some huge falls in the market.
USD/EUR could hit 1.24 & if that breaks, it could really march towards parity. And possibly good to buy Gold as well below 800.

Trading views for now.

cheers