Buy the dip! Don't be afraid of the pullback!(NASDAQ)
It seems the new covid-19 triggered sell-off today! GBP plunged, with crude oil, stock index and the safe haven asset gold? So, are you scared?
From my side, the answer is absolutely no!
Fundamental analysis:
1. Fed is still buying assets in the market via OMO. That the main driver that pushed market up since March. Fed won't stop it until economy fully recovers, maybe in 1-2 years. So we need to check the data then. Not now... look at WEI.. it's still in the negative territory...
2. There is no evidence that the vaccine couldn't defeat the new virus. Now, what we know is it transmitted in a faster way...We need scientists to give us the answer
Technical analysis:
The recent rally is so strong that it goes too far away from the mid and long term moving averages... It's better to take a breathe before heading up again.
Overall, the asset price is pushed up buy liquidity, stock index, commodity, you name it...Before the liquidity vanishes, any drop will be a good opportunity. I suggest investors to buy ETFs.
For future traders with small account, we need to look at smaller time frames, such as 5m or even 1m, there will be some free money there!
From my side, the answer is absolutely no!
Fundamental analysis:
1. Fed is still buying assets in the market via OMO. That the main driver that pushed market up since March. Fed won't stop it until economy fully recovers, maybe in 1-2 years. So we need to check the data then. Not now... look at WEI.. it's still in the negative territory...
2. There is no evidence that the vaccine couldn't defeat the new virus. Now, what we know is it transmitted in a faster way...We need scientists to give us the answer
Technical analysis:
The recent rally is so strong that it goes too far away from the mid and long term moving averages... It's better to take a breathe before heading up again.
Overall, the asset price is pushed up buy liquidity, stock index, commodity, you name it...Before the liquidity vanishes, any drop will be a good opportunity. I suggest investors to buy ETFs.
For future traders with small account, we need to look at smaller time frames, such as 5m or even 1m, there will be some free money there!
plan your trade and trade your plan