Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Minyanville's T3 Morning Market Call: Stocks Soar After Central Bank Intervention

By

Bulls are getting a gift this morning after world central banks announced a coordinated effort to provide dollar liquidity to the flagging world economy.

PrintPRINT
The Minyanville - T3Live Morning Market Call is brought to you by T3Live.com. T3Live.com is an online financial media network and education platform that provides active traders and investors with market analysis, real-time access to strategies, and in-depth training from real traders, real-time©. Learn more.

Bulls are getting a gift this morning after world central banks announced a coordinated effort to provide dollar liquidity to the flagging world economy. S&P futures are up more than 2.5% in response to the news.

Who knows what the long-term ramifications of these action will be, but in the short-term markets are up big. Many analysts still believe that problems in Europe will come to roost at some stage. Today's announcement at least postpones calamity in Europe and buys time for the global economy to begin a more meaningful recovery. Those that may have shorted on the failure at the 50-day yesterday will be hurt today (including me).

Last night Standard & Poor's cut the credit rating on 15 major European and US banks as part of a major overhaul of its rating criteria. My risk-averse little voice in my head led me to cover 75% of my SPY short after hours, but being short anything this morning will still be painful.

The action in this market remains difficult to trade for short-term traders. The thin tape and headline-driven nature of the market make it predict market direction, and today's big gap up will be the latest example. Major indices opened sharply higher Monday following a strong Black Friday in retail and on more rumors of intervention from Europe. Perhaps the strength of the gap up was evidence that something was in the pipeline, but the intraday action over the last two days has been lackluster.

The breakdown of the wedge took place around $123.50-124.50, which should provide some resistance today.




Check out T3Live.com's Virtual Trading Floor to follow these traders and their live portfolios on real-time throughout the day! Take a free trial.

< Previous
  • 1
Next >
Scott J Redler is short SPY
PrintPRINT
 
Featured Videos

WHAT'S POPULAR IN THE VILLE