OK, so the dramas of the US shutdown (and default scenario) is past. Just don’t forget that they “merely” extended the borrowing, I think there is 4 months timeline the same issue might come up again. So I’d expect some V-shape week charts. Meaning, fear-driven sell off at the hint of strong disagreement, but that doesn’t mean the world has come to an end. Bargain-hunters would swoop in and the rest of the market could rally just before a final agreement is hammered out. After the agreement, there was a “sell on the news” phenomenon but only a slight dip within the day.
Meanwhile, there is life outside the US :). I’m trading BHP (biggest miner in the world) so I had to pay attention to the news coming out of China. Here are some videos with details of the next meeting for policy direction.
My trade here will be for BHP, the biggest miner in the world, I am expecting a volatile uptrend with this stock. Will be employing ratio and perhaps calendar spreading strategies which I will discuss in the next blog posts.
Meantime, enjoy one of my favorite songs “Georgia On My Mind”
