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Wednesday, October 15, 2014

Mrs Market, wtf?!?

The last time the market started to test the 320-360sma support, the EU was at real risk of collapsing. 

There are always concerns in the world. Currently we face severe threats of Ebola and IS. But these major society concerns, not financial concerns, that will have limited effect on economic conditions. The major financial concerns are:

1. China slow down. (But the central bank head re-confirmed his thoughts on hitting the target GDP rate.)

2. EU slow down. (Mostly tied to Russian sanctions. Real society effects, that can hit economies are the very high youth unemployment in the EU. Fiscal policy changes must act on this. Does it merit 9% decline in US markets? Questionable.)

3. Russia. (When they decide to stop being bullies, oil will probably stabilize.)

Anyway, I thought we bottomed te other day. So today I am more of a bull. 

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