Daily Market Analysis – 3/10/2016

Video length: 00:02:02

During the day on Thursday, we getting ECB interest rate announcement, and of course the press conference that accompanies that particular announcement. With that being the case, it’s probably going to be fairly volatile session, as we should continue to see quite a bit of back and forth action overall.

1 – It’s very likely that the ECB will try to do something to stimulate the economy, which could bring down the value of the euro. With that being the case, the market could very well continue to see movements based upon these words, and therefore it makes it very difficult to guesstimate what happens next. However, we believe that the US dollar will strengthen, but more than likely precious metals will as well, as there will be a bit of a concern when it comes to monetary policy around the world.

2 – European indices should continue to strengthen based upon whatever the ECB does, but given enough time it’s probably going to be a bit of a situation where you are forced in the buying stocks, assuming that you have a large amount of money that you have to deal with. Keep that in mind as hedge fund managers will probably have no other alternative due to the fact that bonds are paying absolutely no return. With that, stock markets will probably be the only game in town given this situation.

3 – Given enough time, the markets will decide what the next move is, but in the meantime it looks as if all moves will probably be of the short-term nature. Keep this in mind when placing your trades.