Indice S&P 500Long
Are we reaching the TOP now ?
Aggiornato
cnbc.com/2019/12/19/heres-why-the-stock-market-is-ignoring-trumps-impeachment-by-the-house.html
It is understandable with the dust settled on the US-CHINA trade agreement phase 1 signing, now media are scaring investors and traders with news like can China afford to import so much quantity from US? Or why is China acting lukewarm to this deal , etc ?
And with the impeachment of President Donald Trump, it just makes the forecasting more hazy than before.
Well, your worries comes more acute if you are entering the market now compared to those who got on the train much earlier as they are already in profits. So , you are basically buying at high price and hope it gets higher. My bet is it will go higher but probably the rate will be slower compared to 2019. That means, the speed might be travelling at 80-90km/h vis-a-vis 120km/h in the past. Is that good or bad? It depends on your mentality as a trader. If you like margin of safety and less volatility, then you might find it assuring but to those who likes to bask in the action, to hit the buttons every now and then, maybe it is a little boring.
The impeachment trial will pass eventually and I believe the stock market will not be hit too badly with it. These are flanking moves by the Market and we must remain focused and not get too distracted by it.
Central banks moves are much more imperative moving into the new year. Can we expect more rate cuts or going into negative rates in 2020 and beyond ? I believe so and with so much money flushing into the market, corporates are forced to take up these easy loans with ultra low rates. What do they do ? Shares buyback to prop up their shares price and obscene bonuses for the executives.
Not just the shares market, but all assets like properties, REITS, etc will be supported as well. Thus, it would be foolish for one to park their funds into banks and not put into S&P 500 index or shares to earn a better return. This is probably going to be the last of the bull market before we witness the next nasty bear market (God knows when).
Corrections, imo, is for buying and not for selling unless you know what you are doing.
Next, President Trump imo, is less concerned with the signing of the trade deal (again politics) or subsequent phase 2 or 3 if there is than the performance of the stock market. He knows the latter is crucial for his 2nd term election next year and he has to do all that he can to ensure it keeps running.
Remember how he chide the Fed for not lowering the rates further ? He shows impatience. Read here : markets.businessinsider.com/news/stocks/trump-it-would-be-great-fed-slashed-rates-dollar-tweet-2019-12-1028769616
Don't asks me about the impartiality and independence of FED and how is Powell connected to Trump. Your guess is as good as mine.
So I am sticking my neck out to predict global equities especially US would continue to do well next year. I am also favouring sectors in 5G, IOT, commerce, China, Singapore, banks and a few commodities sector.
It is understandable with the dust settled on the US-CHINA trade agreement phase 1 signing, now media are scaring investors and traders with news like can China afford to import so much quantity from US? Or why is China acting lukewarm to this deal , etc ?
And with the impeachment of President Donald Trump, it just makes the forecasting more hazy than before.
Well, your worries comes more acute if you are entering the market now compared to those who got on the train much earlier as they are already in profits. So , you are basically buying at high price and hope it gets higher. My bet is it will go higher but probably the rate will be slower compared to 2019. That means, the speed might be travelling at 80-90km/h vis-a-vis 120km/h in the past. Is that good or bad? It depends on your mentality as a trader. If you like margin of safety and less volatility, then you might find it assuring but to those who likes to bask in the action, to hit the buttons every now and then, maybe it is a little boring.
The impeachment trial will pass eventually and I believe the stock market will not be hit too badly with it. These are flanking moves by the Market and we must remain focused and not get too distracted by it.
Central banks moves are much more imperative moving into the new year. Can we expect more rate cuts or going into negative rates in 2020 and beyond ? I believe so and with so much money flushing into the market, corporates are forced to take up these easy loans with ultra low rates. What do they do ? Shares buyback to prop up their shares price and obscene bonuses for the executives.
Not just the shares market, but all assets like properties, REITS, etc will be supported as well. Thus, it would be foolish for one to park their funds into banks and not put into S&P 500 index or shares to earn a better return. This is probably going to be the last of the bull market before we witness the next nasty bear market (God knows when).
Corrections, imo, is for buying and not for selling unless you know what you are doing.
Next, President Trump imo, is less concerned with the signing of the trade deal (again politics) or subsequent phase 2 or 3 if there is than the performance of the stock market. He knows the latter is crucial for his 2nd term election next year and he has to do all that he can to ensure it keeps running.
Remember how he chide the Fed for not lowering the rates further ? He shows impatience. Read here : markets.businessinsider.com/news/stocks/trump-it-would-be-great-fed-slashed-rates-dollar-tweet-2019-12-1028769616
Don't asks me about the impartiality and independence of FED and how is Powell connected to Trump. Your guess is as good as mine.
So I am sticking my neck out to predict global equities especially US would continue to do well next year. I am also favouring sectors in 5G, IOT, commerce, China, Singapore, banks and a few commodities sector.
Nota
marketwatch.com/story/stock-market-set-to-rise-in-post-christmas-climb-2019-12-26?mod=home-pagePraise Lord for it does not goes back on his promise. Abundance and more abundance .
Nota
i wouldn't recommend sell as this is a counter trend strategy unless you have the skills to do it. Let the price falls within the channel a bit more before scooping up cheaper later. The bull run is far from over.Nota
There is really nothing to panic looking at the chart. Price action is still within the bullish trend, this is a minor correction which offers another chance to buy at cheaper price.
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