RE: The Markets Bounce Back Big, Good News for McCain or Obama?

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RE: The Markets Bounce Back Big, Good News for McCain o... - 10/13/2008 9:11:20 PM

quinta

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Joined: 4/27/2008
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Truthfully, I don't think the market has "bounced" back. Various countries are starting to meet to discuss 'world wide bailouts' so people felt more secure buying today. Truthfully, I think that it's temporary. I predict by the end of the week the markets will be back down again. People lost a lot of money so far, and the government bailout plans don't really benifit us... we have to continue to dish out more money to these big bunisesses and banks that got greedy in the first place. It doesn't really make sense. Minimal social security, expensive healthcare, very little regulation on big business, and a society almost totally dependent on an inelastic fuel sorce which is steadily running out. I don't think either canidate Obama or McCain will benifit; and in fact, I think either canidate will have there hands full juggling the market for the majority of there presidency.

Good luck to both of them... they better figure something out.

(in reply to Real_Trouble)

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RE: The Markets Bounce Back Big, Good News for McCain o... - 10/13/2008 9:21:52 PM

quinta

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They are driving down gas price temporarily before the election.

(in reply to quinta)

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RE: The Markets Bounce Back Big, Good News for McCain o... - 10/13/2008 9:48:11 PM

Kirata

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Joined: 2/11/2006
From: USA
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~FR~

I'm a Trader. I trade currencies, not stocks, but markets are markets.

When trading resumed on Sunday evening after the weekend, the EUR/USD opened about 150+ pips higher than it was being quoted when the market closed on Friday. News that the Euro was going to get some support kicked the rate up before trading even opened. People just wouldn't sell at the old price anymore.

Too, high volume buying doesn't necessarily indicate strength. Traders who were short the EUR/USD were buying out of the market, not into it. They were buying to cover their short positions. The market opened up 150+ pips at 17:00 Eastern, and for the first three hours of trading it continued to rise. But after all the shorts were covered, it sank again. By 23:00 the exchange rate had fallen back about 100+ pips off its high.

So, the market going up doesn't necessarily mean high volume. Prices can go up on zero volume, while the markets are closed even. And when you do see high volume buying, it can reflect shorts being covered, not confidence. Like everything else, only time will tell the tale.

K.

(in reply to quinta)

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