Stocks posted gains for the fourth day on Tuesday on growing hopes that Greece will avoid a debt default, adding momentum to the market's recent rebound. That said, not every trader on the floor of the New York Stock Exchange buys a recovery for US equity markets.
Alan Valdes, manager of DME Securities, explained to elEconomista English Edition that "is all about QE1, QE2 and maybe QE3. Between the first two ones, when there was no stimulus, the market came down, traders know that, they´re watching this".
About the rebound experienced by major equity indexes in the US, Valdes said that "this market actually doesn´t has is own legs, is no sustainable without federal assistance".
"We trade on confidence and any given day, here in the stock market, the assumption is that if you buy stock at 10 dollars in the future you want to sell for eleven dollars. The fact is that since the beginning of may, the S&P has lost in value over 1 trillion dollars", he explained.
At the end, Valdes assured that traders "don?t look at day-to-day behavior of the markets they look at that long term value of the S&P, and that?s tumbling".