Saturday, December 12, 2009
Even when there is public concern over the state of the economy, the market does not react in a similar way to all economic data. Some reports seem to be more important than others, and the market appears to focus on one report at a time. The most significant data seem to be unemployment and [...]
Saturday, December 5, 2009
The largest price moves and the greatest volatility are the result of reactions to unexpected news. These market events pose the greatest risks to all traders because they are unpredictable and of such great magnitude that they are out of proportion with normal trading risk. It may be possible to trade for a number of [...]
Tuesday, December 1, 2009
The market seems to focus on one news item at a time. Although the same factors are always there to affect prices, they must reach a point of newsworthiness before they become the primary driving force. For heating oil, the combination of unexpected, sustained cold weather compared with available inventories will activate a weather market. [...]