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Tensions and Turmoil

November 29, 2010 – 6:21 pm

The market has traditionally gone up on the Friday after Thanksgiving but not this year. Fear over Ireland and North Korea dominated the day and that fear continued this morning as investors ignore the good news of increased retail sales for Black Monday.

The U.S. has sent ships to practice maneuvers with South Korea as they call on China to step in and control North Korea’s belligerent behavior. China has decided to call for six way talks but that is not the action the West wants. China is the only one that trades with North Korea and they strongly support their economy. They are the only ones who can exert much pressure other than military. The West wants them to do something and so far China has not done so. The West only has military power to exert. That makes for a tense region.

Meanwhile, there is some good news on Ireland as they got the bailout they needed from the EU. That good news is overshadowed by the concern for Spain and Portugal.

The market does not like this turmoil. It never likes uncertainty. Fundamentally, the economy is recovering and it’s a question of will world tensions upset that recovery. That is what traders and investors are deciding.

Good Trading
Steve Peasley

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