Well, now that the Government has re-opened once again, even though only for a couple months, and both parties have agreed to raise the debt-ceiling, the markets are in Berserk Mode and rising to levels never seen before. All-Time-Highs !!! It is certainly tempting not to get suckered into this Buying Hysteria, but I recommend you keep all your senses on high-alert as thing can go from Good to Bad to Worse pretty fast. These are fast moving fragile markets that we trade in.
Here are some possible Black-Swans that might pop outta nowhere to bite investors in the ASS:
1) CHINA and ASIA - Over the past month, everyone was so focused on the US, that people completely overlooked the dismal and disappointing data coming out of CHINA and ASIA. Now that the market is looking for a new catalyst to guide the next move (UP or DOWN), ASIA will suddenly become more important.
2) SYRIA - The situation in Syria has not improved a bit, and now Sec State John Kerry is claiming that the Opposition Fighters in Syria are not willing to negotiate to end the civil war. So SYRIA is another Black-Swan.
3) The FED - There still isn’t any clarity as to when The FED will start Tapering QE. So expect the markets to latch onto any bits and pieces of commentary that comes out of the mouths of any FED officials. Emphasis on Doves turning into Hawks, or the Hawks turning into Doves.
The above mentioned 3 scenarios will certainly be the biggest catalysts in the markets in the coming weeks/months.
Wall Street Fool
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