Bear's volatile plays

Last week, Greek's debt became a one-day blow from the bear. But the 3-digit wipe out didn't last long, in hours more precisely, then symbolically narrowed to 2-digita loss. This week, China's reserve hike became another play for the bear. Again, a 188 loss opening ended with 45 point lower than Thursday's close.

China's reserve position isn't a secret or surprise at all. This is the second time in 2010. The blog had expected China would do this anytime. And had suggested buy the dig whenever it occurs. In fact, the chinese market reacted positively to the news as it is good to know the bottom line of the Central bank.

It seems all these plays had become wonderful buy opportunities for the bulls. Indeed, good news keeps coming in, expected or unexpected depending where you stand, unemployment is dropping. Inventory is depleting so any expansion will trigger further production. Employment bill is on the way. Big city's house prices have stabilized. So it looks good.

The bear won't give up easily. Europe zone problem, employment bill criticism (whatelse except criticism?), china's reserve, rate increase (1% for probably 2010 and 2011). They *ARE* bad news, no doubt about that. But the key is that they *ARE* expected and indicated in prices already. The bear will seek any chance to rock the market, especially before November.

So the battle is not concluded yet. Be cautious in investment.