Ever since Draghi's snafu last week, the stock markets haven't gone anywhere at all. Except for the Euro Indices, the S&P 500 is the only index out there that's desperately holding on to its gains. We've been bouncing around 2100 and 2050 for weeks now with no catalyst to propel us higher and lower.
The dip buyers may be rewarded if they buy at the right levels. The sellers would also be happy if they sold at the right levels. However, every day the S&P 500 just goes back to VWAP or remains mostly stagnant. It leaves a lot of stock traders confused on whether to put some size in their longs or shorts at this point. Then, we widely await for granny Yellen's golden meeting next week. With the world locked in a currency war, the Yuan continuously devalued, commodity prices imploding and global trade slumping - do you really think the FED would try to cause more damage by raising rates? The market is seriously convinced that a rate hike is coming. I may very well be wrong thinking the FED won't raise rates but they have continuously been lying to us since 2012. This would be a prediction I'd be glad to be wrong on. However, think of the overall impact of this if you are a normal person with loans. Just hope you renewed your mortgage before next week. Good luck! -G
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Multiple AuthorsTraders from Equity Sense will be writing on this blog on positions and other market-related things. Archives
May 2018
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