Euro Zone Anxiety Continues

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Euro Zone Anxiety Continues

Stocks fell again in North America and Europe as Euro Zone anxiety continues. For the last nearly two years the investing and trading world anguished over the state of affairs in Greece. Foreign currency options trading was all over the board. If there were to be a Greek financial collapse, the argument went, it would initiate a domino effect that would take down Spain, Portugal, Ireland, and Italy. After deliberations that seemed painfully slow to many of us the Euro Zone came across with the cash to bail out Greece, for the time being. However, the problem with the Euro Zone is sluggish growth in attempting to come out of the recession. The strict austerity measures added in response to the debt crisis and a broad reduction in credit ratings across the Euro Zone are probably going to keep the Euro Zone as a whole in a recession throughout 2012. Thus Euro Zone anxiety continues, but what about options trading in this environment? Options traders can profits in both up and down markets.
Which Direction Are Stocks Going?
How soon will there be a Euro Zone recovery and how strong will it be? Authorities such as the International Monetary Fund are predicting that Europe as a whole will remain in a recession throughout 2012 and resume anemic growth in 2013. Germany, however, is doing better than most of the other countries. Although the USA is doing better than the Euro Zone, Euro Zone anxiety affects the US markets as well. As is always the case with the stock market, prices respond to the news and investors try to get in early on growth opportunities. Thus, buying calls and or puts on US or Euro Zone stocks can be largely a matter of following the news and reading investor sentiment. We believe that things will be better in a year or so. Then we hear that Spain is having problems again. Investors worry about a situation similar to that of Greece. Good news alternates with bad as Euro Zone anxiety continues and anxiety causes a volatile market. Although the eventual direction of stocks will be up there will likely be a lot of profitable fluctuations along the way.
Are There Specific Opportunities along the Way?
European stock opportunities, like opportunities in US markets, come from two factors. Long term changes in fundamentals drive stock prices. When these changes become evident stocks, tend to move up or down to reflect the new information. Likewise, investor and trader sentiment changes, even when the news does not. Traders who closely follow technical stock trends can engage in profitable options trading even when fundamentals are not clear. As Euro Zone anxiety continues in light of concern about a declining Euro, options traders may wish to concern themselves with finding stocks in the Euro Zone that will prosper in such an economy. Euro Zone exporters may actually do better with a cheaper Euro.

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Euro Zone Anxiety Continues

  1. 1. Euro Zone Anxiety Continues
  2. 2. To see a complete version of this presentationand to obtain our free EBook follow this link:http://portal.sliderocket.com/BLOUC/Euro-Zone-Anxiety-ContinuesRead the Forex Conspiracy Report for insightsinto trading foreign currencies. Get your copy athttp://portal.sliderocket.com/BLOUC/Euro-Zone-Anxiety-Continues
  3. 3. Stocks fell again in North America andEurope as Euro Zone anxiety continues.For the last nearly two years the investing andtrading world anguished over the state ofaffairs in Greece. www.Options-Trading-Education.com
  4. 4. Foreign currency options trading was allover the board.If there were to be a Greek financialcollapse, the argument went, it wouldinitiate a domino effect that would takedown Spain, Portugal, Ireland, and Italy. www.Options-Trading-Education.com
  5. 5. After deliberations that seemed painfullyslow to many of us the Euro Zone cameacross with the cash to bail out Greece, forthe time being. www.Options-Trading-Education.com
  6. 6. However, the problem with the Euro Zoneis sluggish growth in attempting to comeout of the recession. www.Options-Trading-Education.com
  7. 7. The strict austerity measures added inresponse to the debt crisis and a broadreduction in credit ratings across the EuroZone are probably going to keep the EuroZone as a whole in a recession throughout2012. www.Options-Trading-Education.com
  8. 8. Thus Euro Zone anxiety continues, but whatabout options trading in this environment?Options traders can profits in both up anddown markets. www.Options-Trading-Education.com
  9. 9. Which Direction Are Stocks Going? www.Options-Trading-Education.com
  10. 10. How soon will there be a Euro Zonerecovery and how strong will it be? www.Options-Trading-Education.com
  11. 11. Authorities such as the InternationalMonetary Fund are predicting that Europeas a whole will remain in a recessionthroughout 2012 and resume anemic growthin 2013. www.Options-Trading-Education.com
  12. 12. Germany, however, is doing better thanmost of the other countries. www.Options-Trading-Education.com
  13. 13. Although the USA is doing better thanthe Euro Zone, Euro Zone anxiety affectsthe US markets as well. www.Options-Trading-Education.com
  14. 14. As is always the case with the stockmarket, prices respond to the news andinvestors try to get in early on growthopportunities. www.Options-Trading-Education.com
  15. 15. Thus, buying calls and or puts on US orEuro Zone stocks can be largely a matter offollowing the news and reading investorsentiment. We believe that things will bebetter in a year or so. www.Options-Trading-Education.com
  16. 16. Then we hear that Spain is havingproblems again. Investors worry about asituation similar to that of Greece. www.Options-Trading-Education.com
  17. 17. Good news alternates with bad as EuroZone anxiety continues and anxiety causesa volatile market.Although the eventual direction of stockswill be up there will likely be a lot ofprofitable fluctuations along the way. www.Options-Trading-Education.com
  18. 18. Are There Specific Opportunities along the Way? www.Options-Trading-Education.com
  19. 19. European stock opportunities, likeopportunities in US markets, come fromtwo factors. Long term changes infundamentals drive stock prices. www.Options-Trading-Education.com
  20. 20. When these changes become evidentstocks, tend to move up or down to reflectthe new information. www.Options-Trading-Education.com
  21. 21. Likewise, investor and tradersentiment changes, even when thenews does not.Traders who closely follow technicalstock trends can engage in profitableoptions trading even whenfundamentals are not clear. www.Options-Trading-Education.com
  22. 22. As Euro Zone anxiety continues in light ofconcern about a declining Euro, optionstraders may wish to concern themselveswith finding stocks in the Euro Zone thatwill prosper in such an economy. www.Options-Trading-Education.com
  23. 23. Euro Zone exporters may actually do betterwith a cheaper Euro.To a large degree, Japanese, Taiwanese, andMainland Chinese success has come frommanipulating their currencies to keep themcheaper than they would normally be. www.Options-Trading-Education.com
  24. 24. So, as Euro Zone anxiety continues, smartoptions traders may look for stocks thatwill benefit from the current situation andstocks that will fluctuate excessively basedon market sentiment. www.Options-Trading-Education.com
  25. 25. For more insights and useful informationregarding options and options trading,visit
  26. 26. www.Options-Trading-Education.com

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