According to the Associated Press Agency, recent comments by Federal Reserve Chairman Ben Benanke suggested the possibility of further economic stimulus. Known as the quantitative easing, billions of dollars would be injected into the economy, with assistance to banks increased liquidity, companies, stocks and American overall financial health.
The Associated Press also mentioned that stock markets traded more immediately after Bernanke comments, for the possibility of additional stimulation.
An analyst waiting before a clear sky is Peter Leeds, penny stock investing the authority and author of "Investing in Penny Stocks." [John Wiley & Sons] "There were many bad stock market news," said Leeds. "However, I think that the majority of it has been taken into account by investors." Traders expect a global recession, so they "cooked it in the pie' so to speak, this is why you are seeing these compelling values in stocks and penny stocks and the stock market overall."
"There is also the spectrum of our election year." Most of the politicians in power want the economy and stocks to do leading up to the election and a way to make happen is economic recovery. I would be surprised if we don't see a grand tour of quantitative easing in the next months, temporarily goose the economy and stock markets. »
Leeds CITES also the recent decline of China's interest rate, as reported by the BBC, as another positive factor for the performance of the stock market this summer. One of the main concerns comprehensive up until this point was a slowdown in Asia, but the freshly cut of interest rates in China may stimulate their economy strongly to come and therefore help stock and our stock here, according to Leeds.
"There are also many negative investor sentiment now," adds Leeds. "Everyone seems to prepare for the worst." However, it is important to remember that the mood of investors is an indicator of denier - the worst feeling, more we are near a bottom in stocks. If the feeling is very positive, we are more likely to be in a correction in the stock market. »
His research on penny stocks, large cap stocks, the stock market all Leeds uses lots of technical analysis (TA). He explains that one of these TA indicators is on the Volume of the Balance (OBV), which is a measure of the pressure to pressure the purchase of sale. Leeds says that his current analysis shows rotating OBV higher than the Dow Jones industrial average, which is generally a reliable method to predict the increase of prices in the short term.
"We are many signals of purchase for all of the stock market, buy signals for penny stocks that we have reviewed in the past and buy signals for penny stocks, we do the research right now." If the fundamental analysis, which is 80% of our research of penny, or technical analysis, stock many indicators say that penny stocks are highly undervalued right now, and that the stocks and penny stocks both are in for a summer. »
On Peter Leeds, the professional Stock Penny:
Also known as The Penny Stock professional, Peter Leeds is the Publisher of Peter Leeds Penny Stocks of the most popular financial publications in America, with more than 35 000 sold subscriptions. He was also reproduced extensively by major media in Manhattan in Moscow, including NBC, CBS, Fox, the Russia today and dozens of other television, radio, magazine, book, newspaper and online outlets. Leeds is the author of "Investing in Penny Stocks," [John Wiley & son], was a writer of contract for Forbes and is a public speaker [American Stock Exchange, world MoneyShow, mini-séminaires]. Leeds has also led the prestigious arc in Manhattan investment conferences and Panel stock penny to the world MoneyShow.
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