What’s Driving the Markets this Year?
What’s been driving the markets this year? If your market research consists primarily of watching financial television channels, you’d swear that the Fed must be controlling all market movements like it was a puppet master! The vast majority of TV pundits will answer questions about where the market is going next with at least some mention of the Fed. Let’s look at all the Fed’s rate changes so far this year to see if they are producing consistent buy or sell signals for investors and traders.
How To Spot Fake Financial News
Wouldn’t it be nice to see a financial news report that simply reported the facts? For instance, the following would be an example of accurate reporting: “The stock market was down X percent today.” But the following is how financial media always reports the news: “The stock market was down X points today on {insert a rationale here}.” Stating ANY REASON for movements in the stock market is more than suspect. It is the perfect example of fake news.
Charting the Effects of the Trade War
The recent “trade war” appears to have triggered several aggressive price movements in the financial markets. The most obvious reactions are in tariffed commodities like soybeans and lean hogs. But, there are other recent price movements, specifically in the currency market that appear most likely to have been caused by direct government and/or central bank intervention. These currency interventions have affected, at least in the short term, the pricing in numerous commodities, some more than others.
There’s an FOMC meeting and announcement next week. What’s the likely market reaction in silver?
My work as a market technician is generally based on the premise that markets move based on technical aspects derived from prior price action. However, very large players with an agenda (ie: central banks around the globe) are actively involved in the markets. Can looking at both the technical and the influence of the FED provide greater insight into market forecasts? Let’s take a look.
