Stock market speculation?

[Apoco]

Originally Posted by Apoco

TL;DR version - some big things have happened in the last 24 hours. Check back tomorrow.

I said to check back in today, so time for an update!

There's a quote in the WSJ today that really nails this topic on the head:

"'It's not the bad news, it's not the good news. It's the uncertainty,' said Steve Quirk, senior vice president of the active-trader group at TD Ameritrade. 'As soon as it becomes evident that there could be a deal, then [traders become] unfrozen.'"

The absolute knowledge of a situation is fairly easy to respond to. The lack of knowledge on a situation is crippling.

The markets have posted massive gains today. The S&P is up 1.44% as of 3:35pm eastern. The dow is in the process of its third triple-digit gain this week. Things are looking pretty good at the moment. This is true because there are rumors of Obama and Boehner coming close to a deal on our debt ceiling. The thought of having things ironed out by the end of the month is driving investors to try to buy in now before the market rebounds.

Have no doubt - these market gains are still based upon speculation. Until the names are on the paper and the debt ceiling has been lifted we will be in a constant state of speculation and rumors. (Although to be fair - the stock market is pure speculation all the time)
Posted via Mobile Device