July 5, 2008
Commodity trading charts - One of the treasured maxims of Wall Street is: "Don't buy on good news or sell on bad.
" All this means is that in most cases both kinds of news have been discounted. Or, sometimes, that it will take some time for the market to assess the meaning of the news, and that therefore the reaction will come somewhat later. Finally, it also means that the market is fickle enough on occasion to slump on good news and rise on bad. Usually, in these instances, the good isn't good enough, or the bad isn't so bad as everyone had feared. Almost every year sees a slump at Christmas time, as the big investors sell for tax reasons and thereby generate some downward pressure. Almost every year sees a kind of summer doldrums overtake the market, when everyone would much rather be vacationing than turning another dollar.
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Commodity Options Trading
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