Markets are still volatile but it looks like we may settle down a bit
Here's what I expect
We've had a big blow out. The market got that out of its system. It panicked then wondered why it panicked so much. As Greg has just noted the fight will run its course and the participants will tire
I'm not one for slapping numbers and targets on things but I'll have a go for fun just for today
I see the Dow pushing up towards 16300, maybe a little higher and even an outside chance of it going green but it will close down around 200-300 points
For currencies, they look to have hit the wall already so will probably go sideways from here. Watch for some last minute profit taking as the sessions close out.
Asia will be the next driver. A bounce in stocks over there will see currencies follow which will lead to London/Europe playing catch up again tomorrow. Gaps could be the feature in UK/EU/US markets tomorrow
Unless we see an utter collapse in Asia tonight I don't see the rest following suit to any great degree on a mild sell off. At some point the market will remember the fundamental differences between economies and that the world isn't ending. All eyes will be on China and whether they act but any disappointment moves will wane in strength
From there it's anyone's guess, and where my attempts at fortune telling stop. No doubt some of you may have hit big winning trades and hopefully many less have hit losers. For those that did win I urge you to take sometime to analyse how you won. If it was blind luck that you were the right side then give yourself a pat on the back but acknowledge that it was so and that you haven't turned into the worlds greatest trader. Sometimes that false confidence can do you double the damage longer term. Mark it as a win but work twice as hard to keep the discipline on the next trade. Don't get complacent and always keep your eye on the ball
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