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.
A potential stock market surge could be gearing to happen soon as investors and analysts stay bullish. Some analysts are calling for a bottoming-out soon where price finds itself at a key level of support. Buyers look like they are ready to step in although stuck in volatile behavior that is rocking the discipline of […]
Gold flies higher today amid inflation concerns in the US and globally. Even as treasury yields hit a 2-year high, the metal jumped above a key resistance level and is looking to test another. Gold Outlook Although we are seeing considerably high gains for gold in the short term, it still seems unlikely that the […]
One of the most common questions we hear from beginner traders is "How Much Money Do You Need to Trade Forex?" and our answer is: well, it depends. The amount of money you need depends on your goals as a trader. Is your goal to make a lot of money or are you going to […]
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