My Diary 462 --- It was Vow Day!

金志国：看到赢字最顶端的亡字才能赢

 

 

My Dairy 462 --- It was Vow Day!

 

 

 

 

October 29, 2008

 

 

Without an apparent trigger, price trends across many asset classes abruptly shifted last night --- 1)Talk of a possible coordinated rate cut revisited ahead of tomorrow’s FOMC decision, possible; 2) Or is this the mother of short squeezes building on itself (Ala ,Volkswagon) ? 3) A sub-theme has been that the election on Nov 4th may be an important milestone in removing some of the political uncertainty.

 

None of the above "explains" the violent price action in FX, Equities and Rates. But it appears that capitulations have happened - the Nikkei ended up 6.41% and ‘HSI reversed up a whopping 14.35%. In Europe, the DAX soared as short-sellers of Volkswagen scrambled to cover positions.

 

Mother of short squeezes - If you haven't seen the joke called Volkswagon (VOW GR), please have a look. VOW's market cap is almost the same as EOM and is bigger than both HSBC& Citi combined... Porsche has made paper profits of