Well the market has been threatening for some time to retreat as it was massively overbought.The creation of jobs in the USA is not taking place at a very fast rate at the moment,but as was expected more people were out of work in January as temporary year end jobs dried up as well.
Of course there jitters about unrest in the Middle East brought on by the recession ,but the main reason was probably that the markets world wide had run ahead of the rest of the recovery which is still in its infancy.
We in South Africa have the additional worry of the Rand weakening and it is probably not a good idea to go long till the Rand/Dollar stabelises and trades in a narrow band. As always the market over reacts. As always only my veiw .Do your own research before buying derivitives and keep short stop-losses upon them.We are not responsible for any errors or omissions.
OVERSOLD ARE;
AGL,AMS,ASA,BIL,EXX,IMP*,KIO,MTN,NED,SAB
IMP BROUGHT A BAD SENS THAT THEIR INTERIM DECLARATION IS LIKELY TO BE POORER THAN EXPECTED
SBK and SOL are showing signs of recovery OML is still rolling along at the top and might also be overbought at this time. There might be a recovery towards the middle of Febuary as resources are thenlikely to push the index higher as their results are showing dramatic improvements.
Of course there jitters about unrest in the Middle East brought on by the recession ,but the main reason was probably that the markets world wide had run ahead of the rest of the recovery which is still in its infancy.
We in South Africa have the additional worry of the Rand weakening and it is probably not a good idea to go long till the Rand/Dollar stabelises and trades in a narrow band. As always the market over reacts. As always only my veiw .Do your own research before buying derivitives and keep short stop-losses upon them.We are not responsible for any errors or omissions.
OVERSOLD ARE;
AGL,AMS,ASA,BIL,EXX,IMP*,KIO,MTN,NED,SAB
IMP BROUGHT A BAD SENS THAT THEIR INTERIM DECLARATION IS LIKELY TO BE POORER THAN EXPECTED
SBK and SOL are showing signs of recovery OML is still rolling along at the top and might also be overbought at this time. There might be a recovery towards the middle of Febuary as resources are thenlikely to push the index higher as their results are showing dramatic improvements.
