Optimism has struck the Markets. But is in unbridled, and unfounded optimism? What happened to all the pessimists?
The markets are approaching 2009 highs, which makes me wonder why? I know that many investors are anticipating strong (relatively speaking) 3rd quarter earnings.
But based on what? With the mortgage/real estate crises deepening, the entire financial sector is doomed to have an abysmal 3rd quarter. And the Commercial Real Estate implosion is just getting warmed up.
The construction sector, formerly one of the nation’s largest employing sectors, is also far from a recovery, as is the auto industry.
So why the optimism? How long can it last? Here’s what I think.
Look for a massive sell-off of stocks after 3rd quarter announcements, as earnings are lower than anticipated, ESPECIALLY in the financial sector.
So what does this mean for Traders? You guessed it…Volatility.
Nothing like wacky market trends to generate huge profit potential day trading. And the markets are going to be insane as 3rd quarter earnings call commence.
Look for wild gyrations, massive spikes up if a major company announces strong earnings, followed by a drop into the abyss if another has bad earnings.
And of course, as has been the case lately, look for a massive “herd mentality” to prevail amongst investors, and for all logic and reason to be thrown out the window as people decide what to buy and what to sell.
All of which creates amazing day trading potential - IF you know how to take advantage of it.
To learn you how YOU can take advantage of the upcoming market volatility, simply enter your name and email address into the following form, and you will receive a FREE copy our e-Book The Guerrilla Trader – Classified Insiders’ Report
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