The market is up over 390 points today. Is it the continuation of the rollercoaster or are good things happening? The word on Wall Street is Japan’s interest rate policy change is responsible. Today Japan changed to a negative interest rate. How is this a good thing? I am NOT joining Wall Street and drinking that Kool-Aid! The Fed left our rates unchanged earlier in the week and the market drops like a rock. Extra low interest rates is not good. Our rates will go up when the Fed thinks our economy is improving. Japan lowers to a negative rate and the market jumps 391. None of this makes sense to me! I’m not ready to jump in on this kind of news. I might lose out on some stocks moving up, but if this is the real reason for the market move today, I’m sitting this one out. I’m hoping the market is moving because of decent corporate earnings and because the market is oversold, but it could be that we are still on the rollercoaster. If it’s because of Japan, I’m worried about next week. I believe the rollercoaster will continue. If it’s because of corporate earnings and low stock prices, the market will continue to move next week. I am skeptical! These 300 point moves are crazy! Be smart! Do Not Drink the Kool-Aid!
Steve
The Options Coach