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Forex Blog Buy the rumor, sell the fact
Forex Blog Buy the rumor, sell the fact
| Buy the rumor, sell the fact |
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In the last 48 hours we have seen a stellar example of buy the rumor sell the fact phenomena. Since last Friday,  Equities have enjoyed a little run to the top side in anticipation of the government giving business’s another big hand out. The DJIA enjoyed a little run as well and currencies based against the USD. Then the news announcements that Congress may not get anything back to the President’s desk until next week. Then Timmy hit the wires this morning with his “announcement” that was really only restating that a plan was in the works. Equities sold off heavily. This afternoon the Dow touched below 8000 and may well close below there. The EUR and GBP have given back all of yesterday’s gains and are approaching the bottom of ranges. The CHF has been more muted in its give back after the news conference. These moves definitely bring into question the USD weakness seen lately. However, pairs are still caught in ranges that won’t release their grip until some news pushes them either way. The ugly part is this, the 80 20 rule of market trends. The market spends about 80% of its time ranging and 20% of its time in trends. When you look at the USD trend over the last few months we have several more months of Range to go. The question is, how big will the ranges be?
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| Last Updated on Wednesday, 11 February 2009 00:45 |