After the news market dropped 0.7% AH but psychologically traders are sick and tired of these bad news that come and go. I believe this news will backfire and market will rally. This is just my humble opinion. Use your own judgement.
Pro traders base their moves on fundamentals and technicals when it all comes to a head. Not bcuz they are "sick and tired" of bad news. You obviously understand nothing about market dynamics.
i think his statement is valid. He is saying future order flow on buy side will increase because of participant psychology. One could say this are technicals. Or even fundamentals in some ways.
or because everyone knows this is posturing we will have a debt limit doubling and es will rally 550,000 points
Wait for my sign post at market close tomorrow . By the way don't say when I posted market was already up. EWhen I posted this market was down 0.7%
I'll go along with that. I have things I wanna buy. EWG (Germany) & EWP (Spain) are very depressed, relatively speaking.
That's complete BS! All this will do is kick the debt-filled can down the road... the market is forward looking. As soon as everyone gets their heads out of the sand, the market is going to tank. The economy is not improving, QE2 is over, and congress is going to cut spending/raise taxes. If they don't we will end up like Greece; either way our economy is headed for the shitter, either for the short term or long term I do not know.
Now that I think more, I get more faith on my theory. Here are my reasons: On one hand, I have Bernanke's speech today that basically said, he would throw himself under an 18 wheeler but won't let the market collapse and on the other hand I have Moody's "MAY" reduce the US bond's rating. Moody's statement was more political than economical. Moody warned that debt ceiling increase is a MUST and everyone knows that debit ceiling WILL be increased. Both parties are dragging debit ceiling deal to the last minute to show their voters that they fought till the last minute so they can avoid the consequences of their votings in the eyes of their voters.
....So what happens when they raise the debt ceiling? The underlying problem doesn't go away.. It gets worse.