Tom Scollon

How can it be? I speak here of GTP. They have gone into administration in the last few days. Administration is like Chapter 11 in the USA – it is a last gasp before the final blow is dealt. It happens generally because a company has significantly more debtors than it has cash. This happens because usually its model or management or a combo of both is flawed. And for shareholders and lenders it is like throwing more good money after bad and one day comes when financiers say enough is enough.

We have seen a soft market this week in global indices and the key question when we see such easing is: will this be an easing or the beginning of the next slide down?

I can’t consider any stock or future without first looking at a chart – so let’s get straight to it – a simple unadulterated daily line chart:

Everything is rosy in the garden and that is nice. But my cautious head has been asking are markets getting a little carried away? You see, economically things will get a lot worse before they get better and what the punters are banking on is that this is the beginning of the new world.

What do you make of the recent rally - bear market rally or start of a new sustained bull run?