Saturday, October 1st, 2016

Market trading on European Politics

Market trading on European Politics

The market has been fleeced by whats coming out of Europe. Its been months one thing after another which keeps nagging the market trajectory. The situation seems to get better and than it reverses back to bad and the headlines keeps driving the market. Basically its the Europe headlines the way they blow and take the market. When the market is not sure volumes thin out and it drifts slowly downwards. Its a dull market to short, can reverse on dime. It makes trading difficult and very risky. One headline and it can tank 200 to 300 points on DOW.

On the other hand US economy has been gradually improving. Retail, manufacturing and GDP numbers all pointing to the upside. This is just the quality of things that keep giving hope to investors. The latest where the Thanksgiving sales numbers came in 7.1 percent higher than last year. This of course could have vaulted the market into rally mode, but alas these headlines from Europe came crashing down on the party. We are at stand still and S&P 500 is sitting on its 200 day moving average waiting for clues to climb higher.

Here is a video from Breakout where they discuss this “There is certainly a risk of disappointment,” says Michael Purves, chief market strategist at BGC Partners. “It’s not so much what they’re saying, but how their behavior is coalescing: Are they coming together in a broader way to really structurally attack these problems?,” Take a listen:

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3 Responses to “Market trading on European Politics”
  1. The debt crisis also is leading some regulators to question rules that allow European lenders to apply zero risk-weightings to government bonds issued in a bank’s home currency

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