One way of understanding what the market is feeling is to look at how price reacts to stimuli in the market such as economic data and central bank speeches. On an intraday basis, price is simply too random to predict because price movement is dominated by import and export transactions. During the [...]

Last week marked a turning point in perceptions of a global economic recovery emerging (a.k.a. “Green Shoots”) especially with this week’s FOMC meeting on the horizon. The new sentiment in the markets is captured well by today’s headline in the Financial Times: “Recession Worries Rattle Markets.” Let’s take a look at what going on [...]