As the omicron wave pushes its way through the US and Europe, global equities markets remained mostly mixed or are in the red. Employees are not returning to their office jobs as companies are closing early, basketball and hockey games are getting canceled, and shows postpone or or are discontinued for the year.
Things look gloomy going into the end of the year while further downside is expected by most investors. However, there is a lot of potential for the stock market going forward regardless of the expected interest rate hikes in 2022. I think investors can find some comfort in the possibility that the Fed will step in some way to counteract the potentially-harmful action on the stock market. There are some things that you should be doing now to protect your account in this volatile time.
One, keep mostly cash while you look for setups. Buying on the way down isn't a bad thing, but make sure you are keeping enough to pad yourself enough for the possibility of a continuation to the downside or an extended period of lows.
Secondly, take smaller lots to ensure minimal loss on losing trades, even though it means you will not be making as much. The holidays can be a very interesting time with pockets of little volatility before a sudden spike in activity, at least in the US stock market.
SPX500 fell once again today by over 2%, but seems to have bottomed out in the $4530s. Some rejection from the lows could suggest a move higher as a potential new trend line formed. Price crossed under the 50 DMA which could be a bearish indicator for the index as well. Additional support lies at a lower trend line around the $4490s.
NAS100 fell under its 50 DMA and trend line as well and might have formed a double bottom around $15,520. If today's candle can close around the $15,670s near previous days' closes, we could see somewhat of a hammer formation and a potential bounce from the double bottom.
Oil prices have surged this year and have recently pulled back from the highs. However, there are some factors right now that will heavily influence the price of commodities in the long term. And it's important that we go over them so when the time comes, we'll have a better understanding of how to trade […]
As this week comes to a close, we are looking ahead at future setups that could be some of the best opportunities for the next several trading sessions. Here are some pairs for next week that we are looking at. EUR/JPY Recent data has shown a slow down in the German manufacturing sector. With European […]
When it comes to testimonies, it's all in how you say it. Jerome Powell has to be very particular in the way he makes his statements and answers the ensuing questions. Here is what might be in store for the market in the coming days and weeks, and whether or not there will be more […]
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