Does any body have a doubt that we are heading towards a hung parliament , no party will get a clear majority and there will be horse trading on a massive scale ?. If in doubt then one should take a look at the put options for strike 5100 up wards and see what has been happening out there, May series that is, when the results are expected.The way the market has been working in those levels it is not hedging, it is clearly waiting for the fall to those levels, and it is certainly not waiting for Godot. Neither do we see any similar activity at the 6500 and upwards level for calls in the same month.
My view is that we may see those levels earlier and most probably in late March or early April when the global market will go into a melt down .The trigger will be China and its problems which will soon surface followed by the US markets which will not be able to wish any more bad data on the weather .It is a case of too much of a good thing can be bad. The QE. has been going on too long and the effects of a long term QE. is beginning to show.The US markets especially the S&P has been running on vapor for some time and we should soon see the effects very soon, and the level to watch will be 1885 or there about when it will certainly go into a deep correction.This will drag the global markets too into a correction mode.
One needs to be very cautious in these times and not get carried away with large investments on an unsteady market which can take the turn to disaster any time.
My view is that we may see those levels earlier and most probably in late March or early April when the global market will go into a melt down .The trigger will be China and its problems which will soon surface followed by the US markets which will not be able to wish any more bad data on the weather .It is a case of too much of a good thing can be bad. The QE. has been going on too long and the effects of a long term QE. is beginning to show.The US markets especially the S&P has been running on vapor for some time and we should soon see the effects very soon, and the level to watch will be 1885 or there about when it will certainly go into a deep correction.This will drag the global markets too into a correction mode.
One needs to be very cautious in these times and not get carried away with large investments on an unsteady market which can take the turn to disaster any time.