Watch Wild Market Swings
Good morning friends. Today is Monday, March 7 the year 2011.as we start out our trading week we need to keep some things in mind that are still going to influence the market. Rising oil prices and the violence in Libya continuing to escalate, add to the problem and then on top of that we have some warnings of Greece might default on its debts.
When oil goes up in price, it has a bad effect upon price of stocks and we know stocks— at least the prices, are leading indicators or perceptions of economic growth. The unrest in Libya has pushed oil prices so high that traders have little reason to buy equities at all.
Since we have this problem developed in the Middle East we can look at the SPY and if we look at 60 minute chart we see a nicely form symmetrical triangle. I believe this is the reason we have seen wild swings on particular days in the markets. So be aware that if you start this week may not be uncommon for the market to make a big move on any particular day.