Good News in Greece

It’s funny how sensitive the U.S. stock market is to the ongoing drama in Greece. However, on a hopeful day, U.S. markets tend to soar as of late. On Monday, June 22nd, Greece outlined a new plan that seems to be much closer to what their lenders are looking for. As a result, U.S. based investors had more confidence, sending the NASDAQ Composite to record highs, both for intraday trading and a record closing price. Major stocks like Apple ended up big, too. Apple closed 0.88 percent higher than it ended Friday. Biotech shares also went up quite a bit. One major ETF ranked the sector as going up 1.5 percent.

Major indices all over Europe went up in like. The German DAX went up about 3.5 percent, the STOXX Europe 600 went up 2 percent, the ATHEX Composite went up over 9 percent, and the U.S. based Russell 2000 went up to hit both intraday and closing high prices. All over the Western World, stock markets reacted positively to Greece’s good news. It’s a good sign and shows that the world has a lot of potential for continued higher prices. It also shows how dangerous the Greece situation can be if a failure to make an agreement happens.

One interesting thing to note is that the Dow Jones dropped 63 points from its high point for the day. It still went up over 100 points, but there was a lot of room for traders to buy into it, and then still lose money despite how great the day was overall for bull traders. It indicates that there is still room for U.S. markets to improve. It also serves as a warning about the necessity of having good timing if you are going to trade short term. Binary options traders who trade with 24option especially, need to be careful of this, as short term options do not always capture the momentum of a day. There’s a lot of room for profits, but also room for bad trades that lose money. When this happens, losses pile up a lot quicker than profits do thank to commissions and other broker takeouts.

The trick for short term traders that are watching this now is timing. Europe’s trading and business day starts well before the trading day in the U.S. does, giving people in New York a lot of time to prepare for their days. By waking up a few hours earlier, for example, you can get a jump on monitoring the news coming out of Europe, watch exactly how it has affected each sector in the European economy, and then extrapolate those results into the United States, before the market even opens up at 9:30 am EST.

Short term traders need to watch the news, and they need to do it for all major parts of the world, especially when a situation has been ongoing like the debt crisis in Greece. At least a couple hours are needed before markets open to go over current events that happened earlier in the trading day in other parts of the world. Japan’s markets open first, and then Europe’s, and then those in the United States. Depending upon what you are trading, you need to keep an eye on all of these things that pertain to your particular assets of choice. These earlier markets set the tone for the trading day, and while it’s not always exactly how things will progress in the U.S., it does give a very good indication of where things will be headed if the news continues along in the same tone.