The more I see these stocks move up, the more dire the markets become for day trading purposes. In fact there were some decent moves in the Euribor on the back of ECB comments that they may implement negative deposit rates, which was then countered by Mario Draghi himself saying that they would not be looking further into this, which give a good buy opportunity on the initial comments, then a good exit on Draghis comment. Come Friday though we just had the same slow sideways low volume movement.
Looking ahead, we have US Thanksgiving Holiday this week, which will mean lighter volumes then the already light volumes, so what I expect to happen is the usual drift up in Equities to new highs, and the blips of movement in the Short Sterling and Euribor Contracts on the back of limited data in the week.
I think as a whole the rest of the year is going to be very quiet, with winding up trades earlier then usual.
As far as the easing bias by all Central Banks goes, I don't see it ending any time soon, the markets absolutely love it. I saw a pop up in equities when the Japan minister said they will engage in more QE if needed, so looks like the 'Markets Heroin' is still coming thick and fast and despite the lofty levels we are at, there's still room for more upside on any more QE talk.
Europe is still in a mess, so they will keep their murmuring of negative rates which will intern push European Stocks to new highs, as the economic recovery is still way of track.
The Fed, will keep head faking the market into the threat of tapering, but this will not come about, since the economy is now built on leaner workforce's, better technology, and less need for mass employment, hence the numbers wont stack up to what the FED wants and so full force QE will still be in effect.
As far as the UK is concerned, they are the most likely to move on rates if one was to do so, but again, I think they will be too scared to do it first, although if the housing market remains as hot as it is now, then they may have no other option.
So in conclusion, my feeling is that easy bias is here to stay, which is good for them rich folks, not good for the general market.
Looking ahead, we have US Thanksgiving Holiday this week, which will mean lighter volumes then the already light volumes, so what I expect to happen is the usual drift up in Equities to new highs, and the blips of movement in the Short Sterling and Euribor Contracts on the back of limited data in the week.
I think as a whole the rest of the year is going to be very quiet, with winding up trades earlier then usual.
As far as the easing bias by all Central Banks goes, I don't see it ending any time soon, the markets absolutely love it. I saw a pop up in equities when the Japan minister said they will engage in more QE if needed, so looks like the 'Markets Heroin' is still coming thick and fast and despite the lofty levels we are at, there's still room for more upside on any more QE talk.
Europe is still in a mess, so they will keep their murmuring of negative rates which will intern push European Stocks to new highs, as the economic recovery is still way of track.
The Fed, will keep head faking the market into the threat of tapering, but this will not come about, since the economy is now built on leaner workforce's, better technology, and less need for mass employment, hence the numbers wont stack up to what the FED wants and so full force QE will still be in effect.
As far as the UK is concerned, they are the most likely to move on rates if one was to do so, but again, I think they will be too scared to do it first, although if the housing market remains as hot as it is now, then they may have no other option.
So in conclusion, my feeling is that easy bias is here to stay, which is good for them rich folks, not good for the general market.
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