Hello traders everywhere! Adam Hewison here, President of INO.com and Co-creator of MarketClub, with your mid-day market update for Wednesday, the 12th of June.
Choppy Markets Reflect Investor Anxiety
It probably feels like you are on a bicycle peddling very fast and not going anywhere. Here it is a week later and the DOW (INDEX:DJI) is basically unchanged. In the meantime, we have witnessed many up and down days. It seems there is a war going on right now between the bulls and bears and the stakes are very high.
The bulls clearly see the Fed as their friend, and providing that the Fed continues to pump money into the system, they have a good argument. You can't fight unlimited printing presses. The bears on the other hand, don't believe the economy is going so well, not just here in States, but they are also seeing a global slowdown both in Europe and Asia. The bears argue that if the Fed begins to taper its purchases, which now total $85 billion a month, the market is likely to tank. The old trading adage here is that the markets "slide faster than they glide," meaning markets go down much faster than they go up. Currently our Trade Triangles are neutral on the market, indicating that you should be on the sidelines at the moment. I need to see this war between the bulls and the bears resolved before I commit to one trend or the other. Continue reading "Today's Video Update: Choppy Markets Reflect Investor Anxiety"
