With global investors looking for direction in many of the key markets, today King World News interviewed legendary Jim Sinclair’s chartist, Dan Norcini. Norcini told KWN that many of these markets have been taking a tremendous toll on traders. Here is how Norcini described the situation: “Traders are literally sitting on edge. As each bit of economic data comes out or each story breaks out of Europe, traders have no conviction as to which way things are going. So, what’s happening is this lack of conviction, this confusion, has traders jumpy.”
Dan Norcini continues:
“They are afraid of getting caught on the wrong side of the market because the moves, in many cases, are extreme. Any news that seems to come out and shatter the market psychology, and you end up with some pretty violent moves in these markets.
As an example, yesterday, almost immediately when the ISM cleared the wires, you had copper moving higher and crude broke above $106. The stock markets also headed higher and the bond market took a hit. Traders are jumpy, so they quickly jettison positions, in favor of what they think might be the beginning of a new trend. That can change again the next day....Read more......