Markets distill all of the various opinions of traders and investors into one output…PRICE. This discovery process is a critical function derived from the buying and selling action in this open auction.
Warren Buffet famously said that markets are ” voting machines in the short term and weighing machines in the long term”. Meaning they eventually weigh the importance of fundamentals but it may take time to sort it out…
This now called “Crowd Sourcing” technique has usually been right in past decades of predicting events and outcomes prior to the news. Expectations get priced in with little surprise most times.
2016 saw TWO MAJOR times the markets had it COMPLETELY WRONG, in additions the Chicago Cubs won the world series showing anything is possible…
The BREXIT and US Presidential vote outcomes were incorrectly analyzed by our buy/sell barometers shaking up financial markets around the world. After the immediate volatile reaction that rocked stocks, currencies, and metals…markets bounced back in short order after clear minds minimized the consequences.
Binary options with known maximum value of $100 and minimum value of $0 no matter the event outcome ABSOLUTELY limited risk vehicles to participate in unpredicted possibilities.
ANOTHER epic vote is happening this weekend with Italy effectively endorsing the current fiscal planners or not. THIS TIME a NO vote is predicted so the shock surprise may be if that sentiment turns to optimism Thursday or Friday.
In reality, it is a symbolic rebuke of the current economic climate NOT a referendum to leave the EURO. The message would be sent but few Italians would be fond of going back to the Lira depreciation days of old…
A binary option play in the EURO or UK’s FTSE stock index to end the week can position for a sentiment shift IF the market has it wrong so far.
The potential reversal of opinion before the actual vote could be opportunity.