Based on the huge rally yesterday, we are more likely in the status of mid-November. So whether we have a while or black candle stick today and tomorrow will be an important aspect for future directions. However, in current market sentiment, near term downside will be quite limit.
More than 400 points rally is the first time in past 5 years, this kind of huge rally normally does not signal the bottom as during 2000-2002 there are many of them.
Today Chinese markets are a bit disappointing, while I think they may catch up later on if US markets still rise based on the power yesterday.
In general, I still believe we will see 2-3 month with positive gains, while the future is still gloomy. Unless we still very positive signals like housing market recovering or retailers and banks post gains, we still have to be very careful on long side.
Strategies for today is to watch the market to see if commodities, shipping and tech could be options for long. HK ADRs will decline a bit as yesterday they priced in much on upside, I see this is a buying opportunity if the US market stay positive today. 1-2 PM is my recommended time to clearify this trend.
Russian play includes MTL VIP WBD and RSX. MTL is more risky than others, while it has more upside potential.
For hedging long side, still, put bond insurers and retailers.
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