Investor’s Sentiment held by Bush and Bernanke

August 31, 2007

With the end of this month, U.S. stock markets finished with one of the most volatile months in years. No doubt that according to me, as a stock trader, volatility is a paradise, which gives huge swing in the stock from top to down and down to top which helps traders to make good day trading with sufficient gain. For stock investing point of view, volatility is worrisome because it does not give a definitive clue of market direction.

Yesterday’s stock market upward move was mostly driven by statement made by Bush and Bernanke which was as per market expectation. Investors were reassured of making every effort to protect the economy from market turmoil.

The major indexes fluctuated but regained after President Bush spoke about details of a plan to help borrowers facing trouble paying their mortgages.

The Dow rose 119.01 (0.90%) ending at 13,357.74. The Nasdaq composite index rose 31.06 (1.21%) ending at 2,596.36.

Next week view
According to me, next week will be a volatile week. I will (as a trader) use any 50 to 100 points rise in market as an opportunity to book my profit in my selected stock pick and would buy if there is strong dip of 200 to 300 points. As a stock investor I will keep my holding going on, no matter in which way the stock market will swing.