Tuesday, June 21, 2011

Trade the News at your own risk

An ongoing debate I have with family and friends is on the effect of 'News' on the Financial Markets. I was hoping to prove them wrong, and today i got my chance.. I made the following comments  in a previous post, and posted this exact chart:

Note: there is a big announcement on the Greek situation to be released tonight. 'News' traders will be eagerly awaiting the results to adjust their positions. No matter the news, the Euro will hit 1.4429 and start to fall. I say this without having a clue what tonights outcome will be.


Sure enough, the news came out that the Greek government, seeking to avoid debt default, (a scary prospect for the European nations and the Euro) was given a vote of confidence by lawmakers. Bullish for the Euro, right?   Not really. It was priced in, as is usually the case. Here is the updated chart,


The point where it got rejected, 1.4429.  Expecting the correction to coninue into tommorow. Stay tuned.

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