Till Debt Do Us Part (NYSE:AKS) (NYSE:NUE) (NYSE:X) (NYSE:CLF)

One minute we hear that the politicians are close to a debt ceiling increase deal and then another minute we hear that they are not. The stock market only cares about certainty. This afternoon, we have seen small buy programs hit the stock market throughout the trading session only to find out it was simply a false rumor that caused the intra-day spike. This tells us that the stock market is just dying to pop higher on any debt ceiling deal announcement. Here is the problem, everyone is now waiting for a debt ceiling rally. Therefore, any debt ceiling rally that the markets get could simply be short lived. Remember the old stock market adage, when everyone expects the same thing rarely will it happen. 

Traders are some of the smartest people around. For example, most good experienced traders can tell when the markets are setting up to rally or break down. It still amazes me how traders do not run the world, it would be a much better place. Right now, traders are looking for a debt deal to get done, if they were not these markets would be tanking lower. So we should expect a deal of some sort to get done very soon. The big question that we must ask is, will the debt deal be a sell the news event? This is very possible after a short term rally or bounce. How many times do we see a stock surge higher after an earnings report or positive news only to come back down to earth in the next few trading days. This happens very often when everyone is expecting the good news. Right now, there are so many traders and investors expecting a debt ceiling increase that the move could be short lived. Just think about it, how could raising the debt ceiling be good for the economy? When is debt accumulation no longer a positive for the stock market? These will be the next set of questions that will be asked by traders and investors after this debt deal is settled.

Traders should simply expect more volatility over the next few weeks. No one really knows how long a debt ceiling bounce will last. What we do know is, the more people that expect a massive rally to take place after the debt ceiling announcement the more crowded and short term that rally might be. 

Traders should also take note of the weakness in many of the leading steel stocks today. Stocks such as U.S. Steel Corp.(NYSE:X), AK Steel Holdings Corp.(NYSE:AKS), and Nucor Corp.(NYSE:NUE) are getting crushed today. This is not a good sign for a strong economic outlook. These stocks are not holding up at all compared to the major stock indexes. Don't expect the debt ceiling deal rally to last too long. 

Start your day with real Pro Traders; watch live as they trade, guide subscribers, view their charts, ask them questions profit with them!  This is not your average chat room, our Intra Day Stock Chat is for those who are serious about becoming the elite and earning profits as they do, for life. Start your Free Trial now by clicking here, wake up tomorrow with the Best and change your life!

Views: 11


You need to be a member of http://inter-market-analysis.com/ to add comments!

Join http://inter-market-analysis.com/

Mentoring Programme

A mentor is someone whose hindsight can become your foresight.


I currently offer my time to assist people on a 1-2-1 basis in order to improve their trading ability. I offer my support over a 4 week period, 2 sessions per week. The cost of the course is £300. 

Please feel free to email me if your are interested. Email: daytrader@inter-market-analysis.com


"Mentoring is to support and encourage people to manage their own learning in order that they may maximise their potential, develop their skills, improve their performance and become the person they want to be." Eric Parsloe, The Oxford School of Coaching & Mentoring


Live Trading Service

I post my trades in real time accompanied with technical and fundamental analysis via Whatsapp messenger. I clearly explain my trade set ups with detailed charts providing my entry, exit and stop loss.

“Tell me and I forget, teach me and I may remember, involve me and I learn.” ― Benjamin Franklin.

I believe that this type of service is unique in the industry as it helps you understand the reasoning behind taking a trade, priced at just £50 a month, on a pay as you go basis. I offer a one month free trial to all new subscribers, follow the instructions on the Free trial tab above and email me;



Or alternatively if you open up a CFDS.com account and actively trade with it, I will give free subscription to the Live Trading Service. If you wish to take advantage of this please open up an account and email me once you start trading and I will make your subscription free. Thanks .

I want to teach you how to fish, not to feed you the fish.


  • Add Videos
  • View All

© 2020   Created by Aadil (site owner).   Powered by

Badges  |  Report an Issue  |  Terms of Service