Hello everyone. If you’ve been paying close attention to the financial markets lately you probably already know that right now they are tremendously volatile. Major financial indexes tumbled like rocks down the precipitous cliff of financial doom, but recovered slightly on a glimmer of hope for the failed Economic Stability Act of 2008. The fate of this bill is still as yet undecided. Fierce debates are taking place in the US Legislature on this theme, and I have no doubt that the bill will be heavily modified. I believe in the end it will pass in some altered form.
By JOE BEL BRUNO and TIM PARADIS, AP Business Writers
NEW YORK – Wall Street snapped back Tuesday after its biggest sell-off in years amid growing expectations that lawmakers will salvage a $700 billion rescue plan for the financial sector. But the seized-up credit markets where businesses turn to raise money showed no sign of relief.
Source: Yahoo News
By CHARLES BABINGTON and JIM KUHNHENN, Associated Press Writers
WASHINGTON – Alarmed by setbacks, supporters of the imperiled multibillion-dollar economic rescue fought to bring it back to life Tuesday, courting reluctant lawmakers with sweeteners including a plan to reassure Americans their bank deposits are safe.
Source. Yahoo News
Now, for us traders it means that until this financial bailout plan gets decided upon we should expect continued volatility in the markets. In the currency markets, it appears the USD is quite firm against other major currencies, and I do believe this is due to hope that the revived bailout plan will pass.
I recommend caution for now. As for what will happen next, only time will flush things out, so with that I bid you happy trading and remember to protect your capital.