Traders in Europe surely need to catch up with the bulls who are on the other side of the Atlantic. The US markets have ignored any geopolitical concerns so far, and the last week was the best week for them without any shadow of doubt, since July last year. But, the Europeans markets are still trading below their recent high not to mention their all time high and thus, for traders when it comes to risk to reward ratio, there is perhaps much better value here, if the bullish momentum continues.
Earning and valuation concerns have taken the back seat once again, despite the fact that the weighing scale is tilted more towards the caution arena rather than the bullish outlook. Recent earnings released by Google confirmed this sentiment, but tomorrow’s earnings report by the one of the biggest phone company, Apple, will further confirm this argument. There are many speculations that perhaps the iPhone growth was not strong enough as many thought, because not many people really needed the upgrade and there were only cosmetic changes between the iPhone 5 and iPhone 5s.
The geopolitical tensions between Russia and Ukraine are still in the spotlight and they are still intense between the two countries with no diplomatic solution insight anytime soon. But, traders have decided not to factor them in because it seems like that these tensions have only occasional consequence of small fights and nothing bigger, which cannot be contained.
Disclosure & Disclaimer:
The above is for informational purposes only and NOT to be construed as specific trading advice. responsibility for trade decisions is solely with the reader. by Naeem Aslam