Traders closed their short positions during the last 30minutes of trading. This is because they are afraid that any EURO resolution might cause an upward gap again.
Economic data continues to show good numbers. Consumer Confidence, Industrial Production, Retail Sales are all up.
Investors are still afraid that the EURO zone might drag the world into another recession. Financial markets do not believe in the 1 trillion dollar bailout. Or rather, investors are just shaky now. Traders are taking advantage of this fear and greed to trade the market.
The mid term trend is still up. The short term trend is shaky. I think the market will rally again this Monday.
I am waiting for the EURO to bounce upwards for a relief rally or a possible reversal. The EURO is being shorted by every investor now. There will come a time when the EURO will finally bounce back upwards. If the Euro does go up, the stock market will have another strong rally that would bring the DOW to 12800.
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