Just check out last paragraph of my previous post, go on, check it! You will notice that the expected fall has occured today, what's more it was a very volatile trading session again. The British Markets closed down with -4.46% loss of its value. The company that I've been tracking as an example (ANTO.L in the top UK 100 by capitalisation) experienced volatility of up to 10% today...
Wait, let me re-iterate that, the blue chip metal-mining company saw 10% volatility. Only reaction that comes to mind is, wow, because this is not a single case of such volatility, in blue chips these days.
To explain, the Asian markets started daily trading with a horrible nearly 7% drop on NIKKEI 225. Followed by other eastern markets doing rather badly and when western europe opened up the fall continued with now 6:30pm (Greenwich Time) the DowJones is craweling at 8600, meaning -3.65% loss.
A lot of these drops are attributed to some sort of realisation by the investors that eventhought credit markets are improving, everybody else is now going into recession.
See the following articles that will help summarise "events":
http://biz.yahoo.com/ap/081022/world_markets.html
http://biz.yahoo.com/ap/081022/wall_street.html
http://news.bbc.co.uk/1/hi/business/7684216.stm
http://biz.yahoo.com/ap/081022/oil_prices.html
http://ekonomika.sme.sk/c/4135938/svetova-ekonomika-smeruje-do-recesie-euro-pada.html
I think we are now in vain looking for explanations, it is clear markets will be volatile and generally on the down side for big part of near time to come. Traders will still however try to make profits in short term, so we will see upswings and drops as investors take profits (or losses while they are still alive :-).
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