The Markets are constantly moving and we should not be stuck (by Petros Steriotis)
- Friends-readers of m/m,
Good morning,
PETROS STEROTIS:
We are talking about double-digit inflation here and gold has not seen a white day, debunking the economic theory that considers it an anti-inflationary weapon. Oil is called a victim of the recession. Dow Jones fell victim to Powell. Would our DG spare her?
For now, the tale of the autonomy of Greek is over. Since the end of the world has not come, there will naturally be opportunities for the good papers, that’s why we wanted you to have liquidity for the right time.
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What is the right time? Purely diagrammatically, DG does not look ready to reverse to the upside until we see the formation of some base, i.e. braking the fall, first out and then here from the imported injections of composure.
When managers come back from vacation and Drawdowns hit some statutory levels and Clients are asking for change, won’t there be panic selling even from big Houses?
A typical example is the Bonds.
Not all of them are so marketable, so whoever managed to find the exit got there, which puts pressure on prices and raises yields further, dragging the entire interest rate curve, i.e. the cost of money, upwards.
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Even we – perhaps the most well-known devotees of Technical Analysis in the Greek press – say that when investors’ instincts become stupid, then the charts and oscillators lose a lot of their value, not to mention that they can backfire.
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That’s why we avoid selling “bullish” when we really don’t see anything really encouraging for the bulls yet, but on the other hand we don’t panic either. The Markets are constantly moving – even when the spot is closed – and we should not be stuck.
Yours sincerely
Petros Steriotis
- The above express personal opinions, and in no way constitute a solicitation to buy, sell or hold any securities.
Πέτρος Στεριώτης (Χρηματιστής) Petros Steriotis 