What short-term trading signals should we be watching this week?
Answers
190 points
HoughtonAndAtkeson answered one year ago …
This week, we'll be focusing on two things.
First, we want to see all of our broader-market options signals confirm a bull move. So far, we know that the stock-market-friendly Fed is likely to hold off on interest-rate increases, even with higher inflation, to allow for a recovery to take hold. Investor sentiment is also very negative, which typically serves as a sign of a bottom. Finally, there is a tremendous amount of capital sitting on the sidelines that could flow into equities soon. However, we need our options guidance to confirm the bullish undertones.
Second, we want to make sure the S&P 500 does not break down through its 10-day moving average. If it does, our view is that the chances for a near-term market rally are spent.
3963 points
MNSL answered one year ago …
At the moment we can look for following positive signals:
Falling oil prices and other commodities
There is a possibility Fed will increase interest rate sooner than later to control inflation
Appreciation of US Dollar against other currencies in the 2nd half of this year.
I think selected sectors and companies will benefit most due to change of currency trend and commodity trend.
Commodity oriented countries will hit hard. It will affect for their currencies as well. Once they reduce their interest rate their currency will come down sharply. In the mean time some stocks markets will have bullish sentiments in the near future.
