It’s too bad that the stock market has been taken over by financial engineering, as the stock market is a real storehouse of information. However, on Wall Street it is said, “Be careful what you wish for”, as they seem to be running amok ever since oil prices started to rise. Every trader and investor has been caught up in the volatility of the market, with the result that even thought there has been an uptrend recently, the market has been subjected to the great lockdowns of recent days.
The stock market is dominated by two factors; firstly, it is controlled by banking institutions, and secondly, by very powerful governments.
Many investors believe that the governments are more into manipulating the markets to keep their currency high and to keep oil prices high, so they can profit from it.
They think that the governments want oil prices to stay high, and the banks to fall in order to benefit from a tight supply of oil. But the truth is that the governments would like to do both. That is why they decided to break the back of the banks, and pump the stocks in order to balance the books.
The major reason why the fundamental outlook mired on oil prices today is because of the inability of the market to make a profit. The volatility of the stock market has caused many investors to fear the wild fluctuations. For this reason, many investors have found themselves lost in the market, trading stocks which they know nothing about.
There are two sides to the story about the fundamental outlook mired on oil prices, and the short term implications of this. Some believe that the financial engineering which is driving the oil prices up, will actually cause a short term correction. Others believe that the world economy will make up for the losses that the short term moves have caused, and that the downward pressure will be much less pronounced. According to them, the market is moving in one direction, and only one direction, and that is up. Hence, the momentum of the market is very strong and that alone should tip the balance of power towards the bulls.
But this doesn’t mean that the market is secure and stable. Investors continue to lose money in spite of the odds, due to the fact that they don’t have the discipline that is needed in order to place their bets in the right direction. What they need to do is learn how to trade, and that will take time.
They should also find a way to use technical analysis. Technical analysis basically focuses on trends in the market. If you can understand the characteristics of these trends, then you can trade according to them.
The fundamental outlook mired on oil prices today has several causes. Firstly, one could argue that the state of the world economy is bad, and no amount of economic stimulus can come between demand and supply.
Secondly, many of the major players in the oil industry are losing money, and investors are wondering how they can keep pumping stocks and profits. Thirdly, the US government will not be able to support the currency of other countries, and they are forced to sell bonds in order to balance the books.
The main cause of the fundamental outlook mired on oil prices today is the idea that too much debt and stimulus will create problems, and that the huge debt created by central banks will eventually blow up. The idea that the problems are created by the debt levels, rather than the debt levels creating problems is a new phenomenon in the stock market.
The fundamental outlook mired on oil prices today is just one more blow for investors. This is a scary time, and they need to find a way to trade, but in the mean time they need to work on getting their analysis into shape.