You can often prepare for their impact through a few well-chosen news articles or a weekly index chart analysis. Simple arbitrage generates primary influence during quiet periods but broad issues may rise to the surface at any time and shock American markets. Always defend active positions by staying informed and planning a safe exit in the case of an emergency. Avoid overnight holds during very volatile periods and think contrary at all times. The best trading opportunity may come right after the crowd jumps for the exits.
Local influences dominate trading considerations most of the time.
Today's excitement won't move tomorrow's markets. Learn to see the big picture and anticipate leadership through the media hype. Fortunately, markets have a self-fulfilling mechanism that pushes the most emotional issues right to the top of the trading heap. Try to identify proxies for these issues in the indices, futures or even individual stocks that reflect the short-term mood. The markets constantly seek leadership.