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Forget volatility, it’s a roller coaster

Posted: 09/04/2013 - 10:35 am

UAE markets witnessed an active, and if we may say, a scary session yesterday. The sharp reversal the markets witnessed when news over the potential launch of missiles hit the wire painted a clear picture of the kind of reaction the markets could exhibit if the situation escalates.

Those who watched the US Senate’s hearing last night could probably tell that the chances of a strike seem to be fairly high at this point. The uncertainty appears to be in the timing of it.

This means that we will probably be looking at more volatility and additional uncertainty over the next few days/weeks.

As mentioned many times before, the September-October calendar looks packed with potential negative catalysts for global markets and the recent geopolitical developments simply add to these risks.

Again, our strategy remains focused on using rebounds to exit and our trading approach will look to take advantage of steep sell-offs only when the time is right.

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