BOOM! Spain down three per cent.

POW! Italy down four per cent.

And the S&P500 closed down 0.4 per cent… *Fizzle*…

Are the news headlines getting you down? In the last part of this article, I’ll show you a good way to cure the bad-news blues.

But first, this from BusinessWeek.com…

‘National benchmark indexes dropped in all 16 western European markets that were open today…

‘The U.K.’s FTSE 100 slid 0.7 percent…

‘Germany’s DAX dropped 2.9 percent…

‘France’s CAC 40 declined 2.3 percent…

‘Spain’s IBEX 35 tumbled 3.2 percent…

‘Italy’s FTSE MIB fell 3.9 percent to the lowest level since April 2009.’

As Slipstream Trader Murray Dawes wrote to his subscribers this morning:

‘The price action in markets last night after the US debt deal has been very telling…

‘The euphoria… lasted a nanosecond before everyone realised there is no reason to be buying this market here.’

The Dow Jones took a big hit on the open. (Down almost 200 points.)

Source: Yahoo Finance

Same with the S&P. (Down 25 points.)

Source: Yahoo Finance

Both moved up. Then dived.

If you’ve been keeping your eye on the S&P500 Volatility Index (VIX) you would have seen it jump 11% on the open last night.

It’s edging towards ‘high’ on the VIX scale.

Source: Yahoo Finance

Murray said in the free Slipstream Trader market update he put out on Friday, the band-aid debt ceiling solution will not solve anything.

He looked at the S&P500 and the ASX 200. And he identified the best spot to short the market; the high-risk ‘sell zone’ you need to avoid; and why he believes the ASX 200 will hit 4200.

One good way to cool off – if the headlines have got you worried – is to look at the market from a technical point of view. See what the charts are saying. And base your trading decisions on cool calculations. Not Mr Market’s ups and downs.

Of course, it’s more of an art than a science. But it can be surprisingly accurate. For a look at what Murray’s saying now, click here and watch his seven-minute video.

Aaron Tyrrell
Editor, Money Morning