17th May 2006

Nobody knows anything. I was reading the FT yesterday and some analysts [being paid high salaries by the investment banks] all made contradictory statements about the three day mini-crash we've just had. Some said there will be more blood on the carpet; many said they "saw it coming" considering the US deficit situation, high oil prices, chinese revaluation issues etc. Yet what happened today - a modest rise - and they're all in rationalising mode, some almost reversing their arguments.

OK one day is too early to tell where things are going: the only obvious thing to me is that everyone's jittery.

I woke up today to see the charts in the green zone in the morning and then a green/red mix in the afternoon.

If we are climbing back up, it's a good time to make a few bucks - but i'm using Limit Orders in case there is another dip and I can get the stocks at a really cheap price. So i'm hoping there will be another mini-crash where my Limit Order will kick in and then another modest rally where I'll cash in.

My only worry is that there won't be another mini-crash. I get the feeling that we've adjusted to the fact that there will be interest rate hikes and everyone's factored that into their buy decisions. Learn more

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