All posts by MetroTrader

The Grexit Market: Think Like A Trader

Happy Saturday Friends,

I'm making this post available to everyone because it's more of an educational article, rather than a market outlook article.  I'll conclude with some market-related thoughts at the end, but that's not the main point.

The chart below, originally posted on Zerohedge.com, pretty much sums up how the week was. Grexit, and that's it.  Prior to this week, at least we had news and speculation regarding the FOMC rate decision to distract  the market from jerking in response to every news update from Europe.

Webinar: Yellen Wants To Rise Rates Soon – Should We Care?

On May 22nd, Fed Chair Janet Yellen explicitly stated that an interest rate hike at some point this year is appropriate.  Since then, the majority of good economic reports have led to market selloffs and most of the bad ones have led to market rallies (oddly enough). Investors are itching to see if that means there will be a rate hike in June, September, or December. Meanwhile, they are doing everything they can to squeeze the last breath out of this bull market, as they expect the market to collapse as soon as the first hike occurs.