Who would have thought that the never-ending rumours and news surrounding the fiscal and monetary woes of Europe would affect world markets to the extent that they have! If nothing else, it has created a large distraction away from the fiscal and monetary issues facing governments closer to home, thereby taking the pressure off any timely resolution of those problems.
Furthermore, it appears that the U.S. markets are quite capable of rallying without further monetary stimulus, while ignoring unresolved fractures in the country's current economic and fiscal system.
We now have a third method of trading besides fundamental and technical analysis, which I have dubbed the "Euro-gate" method...
- "Buy the European news"/"Sell the European news"...and...
- "Buy the European rumours"/"Sell the European rumours."
Good luck out there!