Best of the Week
Most Popular
1. The Trump Stock Market Trap May Be Triggered - Barry_M_Ferguson
2.Why are Central Banks Buying Gold and Dumping Dollars? - Richard_Mills
3.US China War - Thucydides Trap and gold - Richard_Mills
4.Gold Price Trend Forcast to End September 2019 - Nadeem_Walayat
5.Money Saving Kids Gardening Growing Giant Sunflowers Summer Fun - Anika_Walayat
6.US Dollar Breakdown Begins, Gold Price to Bolt Higher - Jim_Willie_CB
7.INTEL (INTC) Stock Investing to Profit From AI Machine Learning Boom - Nadeem_Walayat
8.Will Google AI Kill Us? Man vs Machine Intelligence - N_Walayat
9.US Prepares for Currency War with China - Richard_Mills
10.Gold Price Epochal Breakout Will Not Be Negated by a Correction - Clive Maund
Last 7 days
Fed Too Late To Prevent US Real Estate Market Crash? - 22nd Aug 19
Retail Sector Isn’t Dead. It’s Growing and Pays 6%+ Dividends - 22nd Aug 19
FREE Access EWI's Financial Market Forecasting Service - 22nd Aug 19
Benefits of Acrobits Softphone - 22nd Aug 19
How to Protect Your Site from Bots & Spam? - 21st Aug 19
Fed Too Late To Prevent A US Housing Market Crash? - 21st Aug 19
Gold and the Cracks in the U.S., Japan and Germany’s Economic Data - 21st Aug 19
The Gold Rush of 2019 - 21st Aug 19
How to Play Interest Rates in US Real Estate - 21st Aug 19
Stocks Likely to Breakout Instead of Gold - 21st Aug 19
Top 6 Tips to Attract Followers On SoundCloud - 21st Aug 19
Holiday Nightmares - Your Caravan is Missing! - 21st Aug 19
UK House Building and House Prices Trend Forecast - 20th Aug 19
The Next Stock Market Breakdown And The Setup - 20th Aug 19
5 Ways to Save by Using a Mortgage Broker - 20th Aug 19
Is This Time Different? Predictive Power of the Yield Curve and Gold - 19th Aug 19
New Dawn for the iGaming Industry in the United States - 19th Aug 19
Gold Set to Correct but Internals Remain Bullish - 19th Aug 19
Stock Market Correction Continues - 19th Aug 19
The Number One Gold Stock Of 2019 - 19th Aug 19
The State of the Financial Union - 18th Aug 19
The Nuts and Bolts: Yield Inversion Says Recession is Coming But it May take 24 months - 18th Aug 19
Markets August 19 Turn Date is Tomorrow – Are You Ready? - 18th Aug 19
JOHNSON AND JOHNSON - JNJ for Life Extension Pharma Stocks Investing - 17th Aug 19
Negative Bond Market Yields Tell A Story Of Shifting Economic Stock Market Leadership - 17th Aug 19
Is Stock Market About to Crash? Three Charts That Suggest It’s Possible - 17th Aug 19
It’s Time For Colombia To Dump The Peso - 17th Aug 19
Gold & Silver Stand Strong amid Stock Volatility & Falling Rates - 16th Aug 19
Gold Mining Stocks Q2’19 Fundamentals - 16th Aug 19
Silver, Transports, and Dow Jones Index At Targets – What Direct Next? - 16th Aug 19
When the US Bond Market Bubble Blows Up! - 16th Aug 19
Dark days are closing in on Apple - 16th Aug 19
Precious Metals Gone Wild! Reaching Initial Targets – Now What’s Next - 16th Aug 19
US Government Is Beholden To The Fed; And Vice-Versa - 15th Aug 19
GBP vs USD Forex Pair Swings Into Focus Amid Brexit Chaos - 15th Aug 19
US Negative Interest Rates Go Mainstream - With Some Glaring Omissions - 15th Aug 19
US Stock Market Could Fall 12% to 25% - 15th Aug 19
A Level Exam Results School Live Reaction Shock 2019! - 15th Aug 19
It's Time to Get Serious about Silver - 15th Aug 19
The EagleFX Beginners Guide – Financial Markets - 15th Aug 19

Market Oracle FREE Newsletter

The No 1 Gold Stock for 2019

Global Stock Market Sell Off and Extreme Volatility

Stock-Markets / Financial Crash Oct 13, 2008 - 03:30 AM GMT

By: Regent_Markets

Stock-Markets It could be argued that even with the wild gyrations of the past few months, many were still in denial about the state of the financial markets. Last week, fear was rife as traders, investors, and the man on the street could no longer deny the magnitude of the global sell off. Some commentators are referring to it as the great crash of 2008. Certainly, there have been bigger one day falls in percentage terms, but the scale and unyielding nature of the October's sell off of is unique.

ou only had to take your eyes off a market like the Dow Jones for a second, and it will have moved 100 points in either direction. This level of volatility is almost unheard of. For days markets have continued to show signs of complete surrender, days that may have become capitulation low points in the past, yet the sell off still continued. People looking for the bounce that often follows such waterfall sell offs, have so far unfortunately been too early and quite wrong.

The VIX options volatility index, often referred to as the 'fear gauge', has spiked to levels even higher than those registered during the height of the dotcom bubble collapse. This is a broad decline with no one sector out on its own in leading declines. Financials are down of course, but so too is the energy sector, as oil continues to break down. Last year around the quiet period and intermediate high of August, the FTSE had a daily range of around 60 points. Last week it was moving that much every 15 minutes. These are extraordinary times and many technical indicators are flashing at levels never seen before. At best, central governments are hoping that the coordinated rate bomb and localized interventions have stopped Armageddon, there is now no hope of the UK, US, Irish and Spanish economies avoiding recession.

This week's planned economic announcements will continue to play second fiddle to the shocks and surprises that await us all. US financials will be grateful for Monday's Columbus Day bank holiday, though the stock market is still open. Aside from this, there are important announcements from the UK to start the week with PPI input on Monday and CPI on Tuesday. Wednesday brings a raft of US data with US PPI and retail sales. Bernanke is also due to speak on in the late afternoon.

Although the sub prime mess originated in the US, this has always been a global credit crunch. European banks were some of the biggest buyers of sub prime securities, so when the crisis developed, any one of the world's major banks could have been holding toxic assets. This in turn led us to the historical coordinated action by the world's central banks today. Each government has attempted to deal with the crisis with specific interventions in their area but all eyes are on this weekend's G7 conference for further coordinated international activity.

It could be argued that Britain and the US have been able to take more significant moves because they have their own central bank and perhaps crucially a central treasury, something the Eurozone lacks. With problems in Ireland, Spain, Greece and Italy increasing, the pace of a recession across the Eurozone could run at different speeds, as did the preceding period of growth. The differing needs of each individual state could put further pressure on the Euro against the Dollar. The Dollar has recovered 16% from the lows back in March.

Betonmarkets now offer long term trades lasting a year and this could be ideal for currency moves. A one touch trade on the EUR/ USD to touch the 2005 lows of 1.16 in the next 12 months could return 117%.

By Mike Wright
Tel: +448003762737
Url: &

About Regent Markets Group:   Regent Markets is the world's leading fixed odds financial trading group. Through its main multi-awarding winning websites, and, it has established itself as the leading global provider of a unique, powerful way to trade the world's major financial markets. The number, length and variety of trades available to our clients exists nowhere else in the world. Tel  (+44) 08000 326 279

Disclaimer: The above is a matter of opinion and is not intended as investment advice. Information and analysis above are derived from sources and utilizing methods believed reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Do your own due diligence.

Regent Markets Archive

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules