A resurgence of sovereign debt problems suddenly appears to be worrying the financial markets. Looking at the stock markets, the FTSE 100 is looking rather tired up in the 5700-5800 region.
So far, the high for 2010 occurred in April when the market hit 5840 before a concerted slump. It will have weighed on investors’ minds that the same conflux of events occurred back then to take us lower. This came in the form of sovereign debt worries, weakness in the western currencies, a surge in oil up to high $80s and so on.
We obviously aren’t expecting a repeat performance, but bulls should be reminded that the equity markets slumped 15% back then. Caution and stop losses remain worthwhile weapons in your trading armoury.
The extra caution looks valid according to a recent
