Hot Horse

A quite incredible day in the financial markets today.  Massive gains around the world were topped off with an almost unbelievable rise of 936 points on the Dow Jones – a move nearly twice as big as the previous all time high move of 499.

It’s the sort of fillip the financial world needed to get moving again, and it’s looking as if the worst of the disaster scenarios are now averted.  The EU nations clubbed together to commit a massive $2.7 trillion to underpin the European banking system.  Morgan Stanley got their Japanese investment on fantastic terms – their share price, around $7 intraday on Friday closed at around $18. 

The panic is averted for now, but there is still a lot of mess that will need clearing up.  I’m not sure the market will hold on to all of today’s gains for long – it looks like a slightly false move by the Dow, and a lot of funds and investors will soon get over the euphoria of having looked into the abyss and backed off.  It will be choppy for a while yet and the market will no doubt overreact to everything as nerves are still going to be frayed.  If I was looking to trade I’d go short in the US mid/late morning (NY time) tomorrow, but I don’t short on the whole.

I do think that this could be a big turnaround point for the Labour Party.  The strategy of nationalising Northern Rock has now been ratified all round the world, and Gordon Brown appears to have played an big role in selling this solution the the EU.  He finally has something he can sell, and sell it he will.  Labour look worth a bet for the next election – expect the price to shorten as we move into Christmas.

This will be my last blog about the markets – I’m going to get back to the horses.  I’m sorry if I’ve bored anyone with my financial rants.

Bet Noir ran today – I didn’t bother to put it on the blog as I didn’t think she’d do anything.  She’s become very disappointing.  Tikka Masala is an intended runner on Thursday.  Bea Menace and King’s Head are both in on Friday at the moment.  Winker will not come out again this year but he stays in training.