Wednesday 12th November – Daily Stock Market review

GDAX

GDAX rose in morning trade with other euro indices. Had a trade level at 4882, and the market came within a whisker of triggering this trade, touching an intra day high of 4875. After this though, it was down hill, and when New York opened the GDAX fell further, closing at 4620. The falls were due to an announcement by Treasury Secretary Henry Paulson, he said the government won't buy banks' soured mortgage assets after all, disappointing investors who hoped to see the bad debt wiped off companies' books. The news did not go down well on either side of the Atlantic.

Oil

Oil today fell further. Should have held onto my trade from yesterday. I cannot believe it keeps falling. It is now a third of the price it was at its peak on the 7th July, an incredible fall in just 4 months. It Closed at $52.09.

Dow Jones

Another big fall today. As previously mentioned, Henry Paulson’s statement about the big bank bail out plan, plus worries over the state of the US automotive industry caused wide spread selling. Only last week, the Dow closed at 9139. Today it closed at 8283. A fall of almost 10% in a week!! I had no trades today on the Dow. Tomorrows trade level is 8429, we will see if we get a bounce.