Trading Forex is a lot like watching Nature.Â Its all about the survival of the fittest.Â Often when banks intervene in a currency to halt its slide or stop its appreciation, the result is an outlier in the overall trend.Â As money floods or leaves the system, the currency will be shocked into the opposite direction.Â After a few days or hours, the same trend reasserts itself and the country would've wasted all that time, energy, and money.
Interventions in the stock market are a lot like Forex interventions.
The trillion-dollar infusions by the U.S. and European countries into their financial systems didn't seem enough Wednesday to fuel more than a two-day rally. Major Asian markets fell on disappointing earnings and worries about a global recession.[via Forbes]
Why should this time be any different?Â My targets for the S&P500 are still at 900 then 700.