Tomorrow is the semi final day for the EU summit. There will huge volatility and lots of rumor like it happened today, that "G20 are planning to lend 600B Euro to IMF". Soon, IMF came out and denied this rumor. This is the 4th time same rumor came out and many got trapped by it.
Let me give you some insight about G20. It has twenty countries, Argentina, Australia, Brazil, Canada, China, European Union, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, Republic of Korea, Turkey, United Kingdom, United States of America. Out of this countries, France, US, China and Germany have clearly said, they are not adding up any new fund. Italy needs money, while other countries can't afford to lend any new money because US dollar is at all time high, and it would cost 30% more to the countries to lend any money.
Another rumor that is circulating on all the news channel is that all the hedge fund manager in this country are under performing, so the market will rally because they need to make some money before the end of this year.
My argument is if everyone want to make money, then who's is going to lose ? The market will exactly behave as it happened before thanksgiving. Everyone was expecting thanksgiving rally, so many went all in and got stuck because the rally happened after thanksgiving. Many got frustrated and took losses and reversed their position into shorts. Then the stock rallied up. So it was double loss for many investor. In stock market, if you loss then someone else is making money and vice versa. So becareful with your investment and please don't believe this news channel, they will guide you in wrong direction. Just check when was the last time any news channel was able to predict anything correctly.
Lots of economic data is coming out:
Bank of England (7 EST): Market is expecting some Quantitative easing (QE) or rate cut from 0.5% to 0 ( If the rate cut happens then its bullish sign or else its bearish)
*****ECB (7.45 EST) : Rate cut of 0.25% is expected and some QE. (If it doesn't happen, then the market will be hugely disappointed and there could be big sell off). They did cut the rate last month. so there is less chances of any rate cut this month.
***Jobless claim (8.30 EST): 395k or higher is bearish sign while 390k or lower is very bullish sign.
Wholesale trade (10 EST): 0.4% or higher is very bearish sign while negative or 0 is bullish sign.
The first half of the day will be dominated by ECB outcome and the second half of the day by rumor out of EU summit.
Again I'll emphasis don't be bullish or bearish. Buy anything after Friday or next week. I'll be putting some long term stock after Friday.
Let me give you some insight about G20. It has twenty countries, Argentina, Australia, Brazil, Canada, China, European Union, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, Republic of Korea, Turkey, United Kingdom, United States of America. Out of this countries, France, US, China and Germany have clearly said, they are not adding up any new fund. Italy needs money, while other countries can't afford to lend any new money because US dollar is at all time high, and it would cost 30% more to the countries to lend any money.
Another rumor that is circulating on all the news channel is that all the hedge fund manager in this country are under performing, so the market will rally because they need to make some money before the end of this year.
My argument is if everyone want to make money, then who's is going to lose ? The market will exactly behave as it happened before thanksgiving. Everyone was expecting thanksgiving rally, so many went all in and got stuck because the rally happened after thanksgiving. Many got frustrated and took losses and reversed their position into shorts. Then the stock rallied up. So it was double loss for many investor. In stock market, if you loss then someone else is making money and vice versa. So becareful with your investment and please don't believe this news channel, they will guide you in wrong direction. Just check when was the last time any news channel was able to predict anything correctly.
Lots of economic data is coming out:
Bank of England (7 EST): Market is expecting some Quantitative easing (QE) or rate cut from 0.5% to 0 ( If the rate cut happens then its bullish sign or else its bearish)
*****ECB (7.45 EST) : Rate cut of 0.25% is expected and some QE. (If it doesn't happen, then the market will be hugely disappointed and there could be big sell off). They did cut the rate last month. so there is less chances of any rate cut this month.
***Jobless claim (8.30 EST): 395k or higher is bearish sign while 390k or lower is very bullish sign.
Wholesale trade (10 EST): 0.4% or higher is very bearish sign while negative or 0 is bullish sign.
The first half of the day will be dominated by ECB outcome and the second half of the day by rumor out of EU summit.
Again I'll emphasis don't be bullish or bearish. Buy anything after Friday or next week. I'll be putting some long term stock after Friday.
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