Monday, March 18, 2013

Buy The Dip?

Cyprus received a bailout, but it wasn't the same as with Greece, Ireland of Spain. Savers must surrender up to 9.99% of bank deposits. In a reaction, world markets tumbled down just like the euro.

It wasn't any different for the major US indices. The market opened with a big gap down, but regained most or all of the losses by noon. But indices closed weak, caused by a small sell-off in the last hour.

The million dollar question, will investors/traders buy this dip or not?

5m-chart SPY:

Daily charts DIA, SPY, QQQ and IWM:

Euro, oil, metals
The euro lost big on this Cyprus bailout, down about 1%.
Oil lost big in pre-market but regained all of the losses and then some.
Gold and silver had a good day, it was clear where the money was flowing to. But copper lost big, down almost 3%.

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