[放炮] STOCKS POSITVE ON SPECULATION FED WILL HOLD BACK ON TAPERING

aimei

STOCKS POSITVE ON SPECULATION FED WILL HOLD BACK ON TAPERING

Stocks are positive on speculation this partial government shutdown will be brief unlike what we saw in 2011. Traders are also betting that the shutdown could impact the economy enough so the Fed holds back on its tapering.

The problem is with the debt ceiling deadline upcoming on October 17, we could see the bickering in the House continue. The longer and broader the shutdown, the more it will impact the economy and stocks. In 2011, the S&P 500 corrected 17% in two weeks.

西门吹雪

aimei

Stocks continue to hold in positive territory as traders appear to be betting the shutdown will be short. If not, we will likely see more downside moves so be careful.