American Markets Soar Like the Eagle

America is a country of hopes and dreams. A novice trader could have predicted Monday’s market response to the headlines of every newspaper “ Black Friday sets record sales up 16%”.

When the markets are in dispair, they are looking for any news to buy or sell. Monday’s market was a god sent for day traders, they love markets that surge. Institutional and Investment Brokers were in the markets as they opened or before they opened and by mid day were reversing their positions taking huge profits. This is the game, the strategy.

American Markets Soar Like the Eagle

The early morning surge was pushed upwards on the false news from the IMF about a deal being negotiated with Italy, which proved total untrue. Before the markets could react, Reuters reported that officials have agreed on draft operational rules for the European Financial Stability Facility, the euro area’s bailout fund. This was just the newsthe markets needed. They were waiting for some direction, some leadership from the EU. The news was just that news, as the actual meeting with take place today.

With European markets moving rebounding, the US markets opened with a roar. The negative news from the OECD report did not even make a blimp on the monitor.

Continued news of poured into the markets on retail sales from Black Friday and the demand on Cyber Monday.  As the day drew to a close the markets rallied to close The Dow Jones Industrial Average rallied 291.23 points, or 2.6%, to 11,523.01. After a seven-session losing streak, the S&P 500 Index rose 33.88 points, or 2.9%, to 1,192.55.

The Nasdaq Composite Index climbed 85.83 points, or 3.5%, to 2,527.34.

Volume topped 3.8 billion.

U.S. online sales rose 14.9% percent on Cyber Monday, topping out at approximately $1.03 billion for the first time. Reports indicate CyberMonday far exceeded retailers hopes. This was the news that fueled the end of the day rally on Monday.  Asian shares are trading higher Tuesday morning fueled by the US markets and the news from the EU.

 

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