I rarely discuss news here simply because I choose to focus on technical analysis and the psychology of simplicity that supports it. But there are some interesting undercurrents in our world that should be kept in mind as we enter the last quarter of the year.
1. September is considered to be one of the worst months on record for the stock market. Whether or not we see selling pressure again this year is yet to be seen but so far we have knocked out the best trading days of the month scenario.
2. Market indicators are pointing to some volatile days ahead. There are warning signs and historical signs. What really matters is the sign right in front of us: a cautious sign for the bulls and one I discussed here a few posts back. Since I trade both ways I will trade according to my IN THE CROSSHAIRS© signal.
3. Bloomberg and a run on the banks. The Bloomberg news organization has prevailed in court to force the FED to disclose information about its lending programs to troubled banks. Add this to the growing list of failed banks and the fear is this disclosure could create a panic and a massive run on banks. The details could come any day now.
4. Russian professor predicts the end of the US as we know it. Enough said on this one.
For me, trading is all about the chart. News is interpreted and perceived in various ways depending on the person. All I want to do is follow the reaction to the news. This is where you find your edge and your ability to make money trading it.
