It's funny how the market works hey stja. This afternoon I was...

It's funny how the market works hey stja. This afternoon I was out there with my sponge again soaking up a few more around the 20.5c/21c area. Geez, I'll be back in the green with CAP sooner than I thought if we do indeed get a bounce; my average price has come down nicely over the past two days. I trust I'm not the only one with long term sights on CAP who has been topping up recently? There is some very good leverage to a bounce on the markets through CAP. A bounce to 30c would constitute a 50% gain from current prices, and that is a decent chance in my eyes.

The DOW corrective move should finish fairly soon, if not tonight, and then we start to look for our short term bounce. Fundamental opinions aside, until the DOW breaches 11000 this is nothing more than a healthy correction. Here's hoping that we do indeed bounce soon though because I'm pretty bearish on where the markets could be headed in the medium term if 11000 is breached.

I know some of you only read the stock threads so you may have missed a few things that I posted on HotCopper recently about the markets at large. You may find it interesting.

A week ago when the DOW was in the 12200s I highlighted that the low 11000s would see the bottom in the US if this is merely a short term market correction. We won't be far away from there when they open up tonight.

And here is a look at the longer term trends of firstly the XAO which is seemingly quite promising from current prices with some very strong support in the vacinity, and the SPX which on the flipside has a good chances of trending towards that medium line over time.