Today’s Trading Lesson From TradingMarkets

Editor’s Note:

Each night we feature a different lesson from

TM University. I hope you enjoy and profit from these.
E-mail me if you have any
questions.

Brice

Trading Greenspan,
Part I

By Tony Crescenzi

 

Federal
Reserve Chairman Alan Greenspan is perceived as an enigma, a man whose message
is cloaked behind a wall of obtuse language. The markets spend an inordinate
amount of time trying to break down that wall, hoping they might at last find
the Holy Grail on Greenspanisms. But for most, understanding Greenspan to the
point where both he and the Fed are even semi-predictable, and hence, tradable,
is an elusive challenge.  Greenspan is therefore seen as a distraction to
investors who would rather focus on companies and industry fundamentals than
monetary policy. But Greenspan’s influence is too powerful to be ignored, so
investors must labor over his every word.

Is
Greenspan, in fact, unhittable—