What is worse than uncertainty in the market? NOTHING!
With the pending stress test results there will be some very choppy trading. I am sure that there will be internal leaks so we might want to keep an eye on volumes of the financial players and/or their options.
Wall street hates uncertainty. The days leading up to the 5/4 bank stress test results are nothing but uncertain. With uncertainty, there is no way to place a correct value on a company, business, etc. In Wall Street’s view, it is “give me the news (good or bad), but don’t leave me hanging”. We will often see a company trade up on bad news. The reason could be that much worse news was priced in due to rumor or exaggerated facts.
We are in an interesting time. There is more focus from minute to minute / day to day than ever before? Remember the days where you would find out where you stocks were by reading the morning newspaper? Call your broker? How archaic do those things seem now?
With the advent of the social networking sites (Facebook, Twitter) and the constant stream of news and communication, a connected person can’t avoid hearing about EVERYTHING. This brings us to the point where one day feels like there is opportunity and optimism followed by a day of gloom, doom, and falling skies. If you are so inclined, you will hear everything whether it is rumor or fact. Connected traders and businesspeople are turning into A.D.D. addled adults. Seriously, how many of you have stopped mid e-mail to check something else. Virtually mid-sentence. My name is Bob and I have done it. Crowd: “Hello Bob”. That’s right, we have a problem.
Not much of a point here but to encourage everyone to step away from the technology once in a while, enjoy the moment, and think of the reason you did what you did, bought what you did, sold what you did… in the first place.
Enjoy the day. 70 degrees here in Buffalo. There is nothing like Spring time in Buffalo.
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April 24th, 2009 at 9:09 am
Great article. I know the basics of the stock market, or whatever I can remember from finance class at UB. What would be the best resource in learning about the stock market?
Also I work for AP Wagner in Depew, NY. We are looking for businesses to trade links with, to promote business. I would be glad to add a link of your site to one of our blogs, or our website if you guys are interested. Email me if you are interested, so I know how you want the link to look like.
And yes it is really nice outside today in Buffalo!