Traditional investors and traders in this market would be frustrated with continued influence of exogenous factors seemingly driving the financial markets wild. Yes, the Finance 101 course you took or even the Efficient Markets Hypothesis your professor (and, most everyone in the Investment Advisory business) seemed/seem to extol and hold as sacred don't seem to really make sense in this market anymore.
If you find yourself in the above predicament, at least know that you are not alone. The textbook theories assume that the market participants are rational (and, their actions would not be driven by emotions such as fear and greed), and implicitly assume that there is a sound and principled industry, regulation, and governance balancing and canceling out any irrational forces. Which is what, exactly, we lack these days!
The markets for today may continue the yo-yo of the last few days, mainly driven by yield curve headlines, trade war jitters, and market micro structure. As we stated earlier this week, tread (and, trade) carefully, leaving enough room for sudden/sustained spikes in either direction with apparently no news to support or explain such moves. Read below for our models' trading plans for the day.
#ES #ESMINI #SP500 #SPX #SPY #Fed #China #Yuan #Yields #Rates #Tariffs #Tradewar #recession
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