June 26, 2008


What a day... but i believe that nobody is really surprised with this day.

Most of the european markets closed more than 2% bellow yesterdays closing prices. This is not usual, but is what one may expect when the bearish sentiment is spread among the markets.

Yesterday I wrote some lines, based on my GTI monitoring system, after american indexes closed sharply higher (the biggest rise in two month!) and while asian market were opening higher. You may like to read (http://professor1x2.blogspot.com/2008/06/gti-global-trader-indicator.html) to see that I correctly predicted this sharp correction. I said "keep away", "sell, sell, sell"...

And what should investors expect for the next couple of days? The GTI remains bearish for all the european markets I monitor. I have readings of very extreme values for GTI on Portuguese PSI 20 (-0.42), and Italy MIB (-0.35). Today free fall was not good for all the technicall indicators I use, as they became even more bearish. Markets became cheaper, so it's possible to find some more value than yesterday, but it's not time to buy yet!

Value starts to appear in French CAC and Nordic OMX indexes. One should keep an eye on these two, but only act when the trend revert.

After this day, none of the european sectors remain in bullish GTI zone. Yesterday, healthcare was still with a positive GTI, but this last survivor came bearish today. Still is one of the least bearish sectors, and is among the sectors with more value. One shall also monitor european Oil & Gas and European Insurers (!) for any recovery signal has there is a lot of value here.

European Financial Services, Banks, Home Goods and Telecom. have very bearish GTI values.

Let's see what the markets will tell us tomorrow. I believe that the trends remain bearish so keep on the sidelines.

Feel free to comment this article!


I'm writting these lines after european markets closing bell, but american markets are still working.

This morning I wake up with the asian markets closing mostly green. It was not exactly what one could be expecting from my yesterday's post. But most of the markets has only modest gains, Japan even closed below the previous close.

The winners were Australian and Chinese stock markets, with indexes rising more than 1%, but these movements were not enougth to change my view on these markets. GTI remains bearish for these two markets.

But they aren't alone. All the asian indexes I monitor have the GTI (Global Trader Indicator) below 0, so one can expect that more red ink will be used to describe markets in teh following days.

India's SENSEX and Hang Seng Index are the more bearish markets with GTI at -0.16.
Russian RTSI $ with a GTI of -0.01 is the less bearish market in the asian continent.

Please remember that I don't monitor all the asian markets. For the list of monitored markets see my previous post: http://professor1x2.blogspot.com/2008/06/asian-financial-markets-gti.html

I hope to get better news soon!

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