Best Trade Ideas for April
I know we've had quite an amazing run these past few month, with over 78% accuracy in our trade ideas and sentiments, and thousands of pips in profits monthly...
S&P: hesitant, but still positive
Information is not investment advice
The stock market is going through an interesting phase now. On the one hand, some of its areas – specifically, tech stocks - are booming which alerts observes about investors overconfidence. On the other hand, there is a definite dropdown in the overall performance caused by second-wave virus fears amid new outbreaks. Is the march upwards over then?
Definitely not.
The closer the S&P gets to the pre-virus levels, the more downward gravity it will experience.
Hence, the more horizontally-bent it’s trajectory will look like as it moves upwards to ful recovery.
For this reason, it would probably be unwise to expect the recovery keep the upward pace of March and fall into way too optimistic zone 2 – we are already out of that range.
More likely, zone 1 will be where the stock market will be going – it is the most balanced and moderate expectation.
Finally, zone 3 is also a possibility, at least as a bottom to the channel of zone 1 to which the S&P may drop from time to time.
The horizontal-gravity theory is confirmed indirectly by the fact that each sideways/downward retrace lasts longer: as you move from sector A to sector D (we are currently at the bottom of sector D), you have a longer protraction over time.
Therefore, there is no reason to panic. Yes, there are outbreaks but the fundamentals have not changed yet. Take zone 1 as a realistic expectation of where the S&P goes in the nearest midterm and prepare for zone 3 to provide support at 3,000 for a while ahead.
Similar
CAD Might Weaken As Oil Market Plunges
Futures for Canada's main stock index rose on Monday, following positive global markets and gains in crude oil prices. First Citizens BancShares Inc's announcement of purchasing the loans and deposits of failed Silicon Valley Bank also boosted investor confidence in the global financial system...
Bitcoin & Gold - Safe Haven Amid Bank Crisis
Investor confidence in the global financial system has been shaken by the collapse of Silicon Valley Bank and Credit Suisse. As a result, many are turning to bearer assets, such as gold and bitcoin, to store value outside of the system without...
Popular
What Will Happen with the Euro? An Economic Perspective.
eurusd-is-falling-what-to-expect-from-the-future-price-movement
Will Australia's "Rampant Inflation" Prevail in May?
Greetings, fellow forex traders! Exciting news for those with an eye on the Australian market - the upcoming interest rate decision could be good news for Aussies looking to refinance or take out new loans. The Mortgage and Finance Association Australia CEO, Anja Pannek, has...
How Will BoJ Meeting Affect the Yen
Hold onto your hats, folks! The Japanese yen took a nosedive after the Bank of Japan (BOJ) left its ultra-loose policy settings unchanged, including its closely watched yield curve control (YCC) policy. But wait, there's more! The BOJ also removed its forward guidance, which had previously pledged to keep interest rates at current or lower levels. So, what's the scoop? Market expectations had been subdued going into the meeting, but some were still hoping for tweaks to the forward guidance to prepare for an eventual exit from the bank's massive stimulus
Choose your payment system
