Hello Traders!
Happy start of the week. I hope you are having a good end of the year holiday. :D In this idea we will talk a little more about the outlook of the US markets, mainly due to the characteristics of the recent rally, which has brought several indexes to all-time highs, once again.
The recent news of the stimulus packages approval in the US has resulted in optimism as the markets had a lot of uncertainty (and fear) that government aid would stop. However, these good news doesn’t seem to have had a very significant impact on the price, as there is growing fear about a new wave of lockdowns.
These concerns arise from the lockdowns we’ve seen in various European countries, which has caused a risk-off sentiment in the markets again. This combined with doubts about the vaccine's distribution due to the required storage temperatures, raises even more concerns.
If we analyze the message on the volume that the market leaves us, we can see how, repeatedly, when the market rallies, the volume decreases, which ends up causing the rally to be weak, and to run out of further progress. On the other hand, we can see that as the volume increases, the market begins to show dumps in the price, which reflects a high bearish interest.
In the same way that we commented in the past analysis on the US markets, this is nothing more than a factor to consider within our trading plans, since in summary, the market tells us "Hmm, I’ll go up a bit but dumping like a rock seems more appealing to me", and while this is not a direct message to take trades, it is something that we must consider when conducting our analysis.
I hope this post helps you! Remember to leave your opinion in the comments.
As always, no matter what your perspective is about the market, you gotta’ plan your trades and trade your plan!
Happy start of the week. I hope you are having a good end of the year holiday. :D In this idea we will talk a little more about the outlook of the US markets, mainly due to the characteristics of the recent rally, which has brought several indexes to all-time highs, once again.
The recent news of the stimulus packages approval in the US has resulted in optimism as the markets had a lot of uncertainty (and fear) that government aid would stop. However, these good news doesn’t seem to have had a very significant impact on the price, as there is growing fear about a new wave of lockdowns.
These concerns arise from the lockdowns we’ve seen in various European countries, which has caused a risk-off sentiment in the markets again. This combined with doubts about the vaccine's distribution due to the required storage temperatures, raises even more concerns.
If we analyze the message on the volume that the market leaves us, we can see how, repeatedly, when the market rallies, the volume decreases, which ends up causing the rally to be weak, and to run out of further progress. On the other hand, we can see that as the volume increases, the market begins to show dumps in the price, which reflects a high bearish interest.
In the same way that we commented in the past analysis on the US markets, this is nothing more than a factor to consider within our trading plans, since in summary, the market tells us "Hmm, I’ll go up a bit but dumping like a rock seems more appealing to me", and while this is not a direct message to take trades, it is something that we must consider when conducting our analysis.
I hope this post helps you! Remember to leave your opinion in the comments.
As always, no matter what your perspective is about the market, you gotta’ plan your trades and trade your plan!