I saw this beginning early in the evening, now it’s 12:43 a.m. EST and the futures, trading nowhere near here in the U.S. at this hour, are ahead by nearly 1%. I haven’t even looked for any news yet, but… look for something that either “fixes” the China situation in some way as to make their economic issues ‘less bad’, and/or something that will take some of the downward price pressure off of oil.
Whenever you are learning in the media what is causing a downward price trend in stocks, and those technical measures of market risk are saying risk has been largely wrung out of the market; just a spark, some kind of a catalyst, is all that is needed to set-off the next rally. News trumps technicals.
Usually, and you’ve seen it here, some news or official report from some central banker somewhere, will do the trick… often just a bit early, too, as they see matters beginning to get too ugly for their liking. But, since the whole Chinese matter and the oil plunge are both outside of any control on the part of these powerful figures here in the West, about all they can do is wring their hands. And, there has been plenty of hand-wringing going on, too! I’ll update as I might have anything to add… especially if I should learn of what the catalyst is.
As of 5:50 a.m. EST, futures overseas are up no less than 1.4%! That’s pretty good! Markets are up big the world over, it would appear… Hong Kong, England, Germany, all up very big! Big like 2%! It’s about time!!!
1:25 p.m. EST. This “rally” is not yet looking good either! Yikes!!!
Here’s to your successful investing!
Harold F Crowell