Winners, Turmoils, And Other Things You Need To Know

Financial markets have been in a series of “mixed emotions” this past few days. One part of the world is celebrating a better-than-expected economic data, while the other is disgusted with the results. So far, there never has been a time where the whole financial world is elated, and if there ever is one, it is so rare like spotting a shooting star. You know, like talking about… “emerging market stocks up as central banks from developed nations keep their monetary policies loose.” Well, that’s positive, but only for emerging markets, but then another news will come in and its saying… “that oil went down yesterday and its dragging Wall St. and most energy stocks.” this time, its obviously a bad news, again, only for the US and other oil-producing country. But then. “the better than expected US payrolls lifted sentiments for a sooner US rate hike this year.” and of course, couple that with… “the rally in emerging markets will most likely sustain its strength all throughout the year according to experts.” As if that’s not enough, let’s add more positivity, a news lately is saying that… “stock markets in the US and the US dollar keeps posting gains, this is due to the recent over-bullish non-farm payrolls.” to sum it up, traders are starting to get their appetite for risk, therefore markets are declared to be on risk-on mode for the time being. This is the time where stock markets are going to get higher because of traders bullishness in equities, stocks have no other direction but to go up. Now let’s add more confusion… “succeeding data suggesting that Britain is in great danger of facing recession; economic data pointing out a weaker UK economy for the coming months, on maybe even years.” Yes, people, this is serious. UK is in big trouble just after they voted to go out of the European Union. Their businesses are currently experiencing a massive slowdown and take into consideration that this is just the beginning, so what more if the effects would persist for a longer period of time, the British Pound on the other hand is also going down the drain as the re-ignition of Britain’s quantitative easing pulled their currency to low levels, and lastly the series of economic data coming out for the UK aren’t that good or maybe should I say its so bad!? Just like their Pound and economic sentiment, its also going down.

Now, I’m going to separate this news because in my opinion this is the funniest, though the story isn’t that new anymore most especially if you’re following the OPEC and its cohorts because recently, “OPEC is trying to revive the talks of reducing oil production” in other words, yes its the same old output freeeze….. (sigh)….. REALLY!!?

We’ve heard of this gimmick a couple of times before, but nothing ever pushed through, and now they’re still trying to piggyback traders with this “used lie?” I don’t think market players would still eat this “has been” gimmick running for a very long time. People are now tired of this, they should stop this, for the nth time, please!!!

Getting dizzy now? You don’t know which news to believe? Which one should you follow? How are you going to plan your trade if consecutive economic data are at opposites?

Well, that’s just how economic news go. Sometimes its on the upside, but all of a sudden it will immediately point towards the other direction. Now, what is important is you look at the longer term perspective of a specific equity/currency and decide whether you will buy or sell. Sure, there is no perfect plan for trading but at least you limit your risk if you study your trade very well.