LS Trader: Wall Street Ends February With A Big Loss

The stock markets experienced a heavy day today with the US Government telling us that they would increase their stake in investment bank, Citigroup by up to 36% for up to a $25 billion bailout. This lead to massive uncertainty over the fate of the other massive banks as many believe that this is not the end of the bailout and that the government will take larger stakes in other banks as well. All of this sent US Stocks to a 12 year low. We saw a massive plunge in Wall Street which fell over 150 pips in the just over 2 hours from around 11AM. Wall Street hit record low levels for the month at around 7040 before closing the day at 7049. It is a mystery how low Wall Street can really go, but one thing is certain, the economy is far from recovering and the huge decline of Wall Street shows us how desperate and dire the market situation is.

The S&P 500 also closed at a massive loss at 732.90 which is all time low. The FTSE 100 fell dramatically as well closing at 3767. It is extremely hard to see a recovery round the corner, and I can personally see the FTSE 100 falling as low as 3000. It is extremely hard to speculate given the extreme volatile market situations, and thats where trend following really works. We also saw similar movements in the Nikkei 225 falling over 200 pips from the highest level at just over 7600 in the early morning hours, and it finally closed at 7380. The Germany 30 also fell closing at 3821.

Until next time

Kind Regards,

Robert Stewart