Nov 21, 2014, (9:14AM EST)
The way central banks are cutting their lending rates all over the world; it seems to be the best time to start a business, any business at all because only the business class is benefiting from all this free liquidity in global markets.
That’s’ why I too have been busy finding a new office for my nascent business Maybe I should immediately file for bankruptcy and then request the ECB/ The Fed/ Bank of China/ Bank of Japan or any other central bank to loan me a few trillions from their bailout money
That is a good dream to dream, but right now, in stock markets, all traders should forget about any correction and ride on the coat tails of upward running markets. You all know by now that the Chinese central bank has made a surprise cut in its lending rates and the ECB president Draghi has talked about more easing in the central banks’ monetary policy. This double whammy has made European markets and U.S. stock futures go crazy with high gains.
U.S. stock futures are signaling another big gap up opening ahead. So, these markets will continue with their trading pattern of “buy at dips” and now, rest of the markets have also joined these markets.
So, do as markets do and if U.S. markets continue to rally even after a gap up opening, then please join the rally and enjoy some positive trading.
I’m saying “if” since any big opening move must be watched for confirmation of the trend, like yesterday we saw, where U.S. markets turned high after a gap down opening. Also, there is one political worrying signal for markets, that of confrontation over immigration bill between President Obama and the Republican Party.
So let markets mark their first high and low in the initial hour of trading, then watch which levels markets breach and trade in that direction.
Good luck, enjoy the session, have a great day in stock markets today!
See you later.