Hey folk
Rocky ride in the market!!
S&P cut rating of US govt. What is the impact??
The impact is unpredictable. By right, for any country, the interest rate will hike in the country. Liquidity in the market will dry. Stock will drop and all the bad things will happen.
But is the US. US has almost zero chance of default. Because what they can always do is to print money to return to you.
On the market
Some pointers to share:
1) Bonds and stock move inversely; now bonds are hitting a resistance; A massive H&S and it is testing the head area. If it fail, stocks will move up.
2)USD index from technical analysis is moving down and USD index down stock market up for this few years. I have not change yet.
3) Eur index or Eur/USD from technical analysis show they have some upside.
4) Crude oil; not a good indication as it usually move with the stock market. But lower down the price of crude may mean either demand is low or it will be cheaper for companies to do business.
5) Traditionally, market is not doing well during May, June, July, August period.
So do be cautious.
