Monday, April 11th, 2016

Why the current stock market rallying ?

After a long and brutal Summer, its about time to get back at the Golden goose and make it lay some eggs. The Golden Goose almost got slaughtered in July and August, but never harmed. It always manages to operate its way out of it under some pretext and alibi. Well that is true.

Fall is here and markets usually take off when it starts getting chilly outside and vacations are over and traditionally that is what I have seen in last 6 years or so. It’s because people and traders start paying attention to things, and cluster around their desks in the evenings, instead of jumping in the pool as in Summer. Its also school time and kids are studying. Stock market has its own traditions, just like anything else, and it will find a slightest of excuse to rally even on news that are down right awful.

After months of wrangling European leaders are having a conference which may address European debt problems and Greece debt woes. Members of 17 Eurozone countries will issue a joint communique mid week and this the stimulus that has catapulted the market higher in last few days. Qunilan in this video says that Europe needs a debt structuring plan, along with bank recapitalization, and shoring up Greece’s debt, and that is what the market is looking forward. He further adds the Europe is “ playing around for sometime” and its about time we had a finished product.

On the other front US is about to report its GDP report, and a positive number of 2.5% growth is expected. These numbers do get revised as we have seen in the past. Any shortcomings will be taken negatively by the market, and you can bet some downward action.

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