Making Sense of Confusion

Traders are scrambling the last several days to get an accurate pulse on what is happening in markets all over the world. Because of so many kneejerk reactions, it is hard to tell what’s real, and what is going to be reversed in the next couple weeks. Even the experts are a bit confused about what the proper course of action is, simply because so many of the events that are currently going on are tightly interwoven. For example, oil’s drop in price, China’s declining stock market, central banks ...
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Fed Move Boosts Stocks

Wall Street rallied on the Federal Reserve’s long awaited announcement that they would be raising rates. A lot of traders did not anticipate a rally like this, but to those that have been studying the markets over the last couple months, this shouldn’t have been a big surprise. Thanks to the prolonged selloffs that have been going on, many stocks found themselves very underpriced, and when the Fed made their announcement, a floor of sorts was put under all of the volatility that...
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A Mathematical Approach to Trading Fed News

On Friday, December 11th, Wall Street posted its biggest weekly loss since August. The Dow Jones Industrial Average dropped by 1.77 percent and the S&P 500 dropped by even more: 1.95 percent. There are a lot of reasons for this, but it boiled down to two main points in the end. Investors are afraid of rate hikes, and they are losing confidence because of the free fall in the price of oil. With the Federal Reserve strongly expected to raise interest rates sometime next week, ...
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