Sell off

continues

Sell off of shares continued in Asia this morning with Hang Seng dropping 5, 4 %. The sell off came on top a dismal third quarter which saw stocks falling 25 %. October is traditionally one of the worst performing months in stock markets.

The Euro continues tits slide towards other currencies. EURO/USD trading at 1.3319. Oil prices (NYMEX 78 and Brent 101,85) are trading at lowest levels in one year. The sell off in Asia is due more to foreign investors taking profit and cutting losses elsewhere than weaker fundamentals. Industrial output in China is up in September. Gold is stabilizing on 1630. Silver is also up since last Friday.

Uncertainty continues to dominate in the EURO-markets. Obama added his worries stating that Euro-zone debt crisis clouds the global horizon. EU finance Ministers meet in Luxembourg today amidst growing concern on Greece. No clear solution seems in sight with continued political bickering. The austerity measures are adding to the pain. The Greek GDP is expected to fall 5,5 % in 2011, much steeper than predicted.

From outside Greece seems on the brink of a social collapse. Demonstrators are crowding the streets, and a new general strike is announced for Tuesday.

Expect a new volatile week with continued opportunities for traders who read the rends correctly.