Thursday, November 19, 2009

Bulls and bears stalling the markets

Traders are having a tough time making decisions right now.
Watching different news outlets that focus on the markets you've probably noticed a difference in opinion by several analysts and other market experts. They way I see it there are three groups to be distinguished.
The bulls that say the recovery is happening right now and is stronger then previously thought, that's why the DOW is trading above 10k. Then there's this group of people that are still bullish on the markets but say the recovery is slow and a pull back might happen before we actually see a complete recovery. And then there is the group of people that are still bearish on the markets and say that at the moment the global economy looks like it is coming out of the recession because of stimulus money and that the recovery is artificial. As soon as the stimulus money runs out, we're going to be back to square one with an even bigger deficit to deal with.
Who's right? Who's wrong? That's the debate that is going on every day. And every step of the way it is affecting the global markets. No real direction is given right now and that's one of the reasons I'm not in any trades at the moment. What I do see is the economy stalling and awaiting seasonal results. This would be a good time to dive into fundamental analysis and read up on certain issues that have an impact on your trades. Already the FED and the ECB announced that the interest rates will remain unchanged until the end of 2010 (video below), so no dramatic volatility is expected anytime soon when it comes to interest rates.

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