Interesting things Im reading about news, the absence of news, and how that relates to the Terrorist threat in the Markets. It seems that many traders are saying that the market has "priced in" the Terrorist Threat. In other words, because we didn't have any major economic or company news last week and again this week, the market was able to grind it's fears about terrorism into the market averages.
This essentially sets up an upside bias since if we get better news, Terror fears will not impact prices anymore. It is strange how the market reacts to things like Terrorism. It attempts to price itself as if we are going to have bombs going off all over the place that the hope of eliminating terror is non-existent. I have so much to learn about market psychology. It is so raw and unemotional, that you find yourself doing foolish trades and things just to counteract the stark contrast of it all.
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