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Market Moving Events or are They?

September 12, 2012 – 5:15 pm

With the market here in the U.S. reacting to world economic events
we saw overnight, the German Constitutional Court gave a preliminary
thumbs up to Germany’s participation in the bailout mechanism implemented
some months ago. That decision boosted our pre market indexes and
extended into a small rally at the opening. The decision was not
permanent and had strings attached but it was viewed as a green light
for the ESM.

Later this week we will have the results of the FED meeting which will
also be a market mover, but just like the German court the impact might
be small.

Finally, today we have Apple with their big event probably announcing
the introduction of the new I-Phone 5. That may be a market mover as well.

The reason none of these events will likely move the market much is because
they have been reported on for weeks as important events that will
affect economies and markets. When something is well known and
anticipated the market gets bored. Those who were going to react
have already done so in anticipation.

What really moves markets on a day to day basis is unexpected events.
What moves them in the long run is earnings. Therefore, the most
important of the three events may well be Apple’s show. How many
more new I-phones are they going to sell I wonder and at what profit?
Will the German decision or the FED produce profits? They could if
what they do grows the economy, but at this point that is suspect.

Good Trading
Steve Peasley

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