Good Rebounding Effort

Whenever you witness a sharp selloff, such as we’ve seen on Tuesday, the question pops up as to whether this will be the beginning of a trend reversal or simply a shock reaction to a certain event.

Judging by yesterday’s rebound, it appears to be the latter, as the major indexes found some footing and almost wiped out the previous day’s losses.

Just as a combination of events provoked Tuesday’s downturn, a different combination caused Wednesday’s rebound. Some of the contributors to the upswing were strong earnings, a falling dollar and rising commodity prices.

The Fed’s Beige Book report still stuck to its mantra of “modest growth.” I suppose that as long as any words are uttered that contain “growth,” the market will take that as a positive and rally on, no matter whether it seems to the rest of us that way or not.

The dollar took a big dive and fell 1.6% against the euro, while gold and crude oil rallied. The futures are pointing to a stronger opening as am writing this in Germany at 2 am PST.

About Ulli Niemann

Ulli Niemann is the publisher of "The ETF Bully" and is a Registered Investment Advisor. Learn more
This entry was posted in Uncategorized. Bookmark the permalink.

Comments are closed.