The environment and the general sentiment that dominates the current financial market is curiously similar to that which preceded the period of 2009, thus during the collapse of the financial markets. In fact, when almost all of the financial market experts and financial professionals agreed that everything was going well, the economy was doing well, we were on top, etc..., it is usually the crises that occur and stock market collapses. In 2007-2008, when at least 2/3 of the investors, financial market professionals all agreed that the financial markets were doing well, the S&P 500 had lost no less than 55% of its value during that period. As of September 2009, until January 2010, when all observers, and finance professionals unanimously agreed that the financial markets were in the catastrophe, the S&P 500 had achieved 28% alone in this Period. We are in a market phase where worries prevail and the moral of investors is conditioned by the rhythm of geopolitical and commercial news (China vs USA, Mexico vs USA, USA vs Huawei, OPEC vs Trump, etc..), as well as at the level Economic and (FED). But what should be remembered? It is simply a matter of keeping in mind that the consensus is always wrong about the real situation of the economy because of the political, economic and financial stakes that are guided by the elite. We all know intuitively, that all these factors of the actuality that have been quoted, are in fact only instruments of negotiations to establish and affirm a certain global leadership. The economic and financial crisis will only intervene when the time comes by itself, and the fact that the world would be confident about the vision of the evolution of the financial markets
The American President will do everything in his power and influence, to maintain the high indices because, for him, the progression of the index to new heights is a sign of good economic governance, and thus a presidential campaign argument. All the more so, that he almost swore body and soul to militate in order to get a low dollar with low borrowing rates to promote over-consumption of American households and thus maintain a spiral of domestic spending that should impact positively, and directly U.S GDP. Except that until then, the result of this plan has not been expected given the inflationary allure of the American economy. So, therefore, it is the big hands (large flow of capital) that artificially maintain the high indices, favored by a banking climate and an accommodate Government policy (financial stimulus with large pump, tax plan of companies, oil quotas etc.). Reading and finding this political and economic situation gives me the quasi-certainty that the margin progress of the indices is sufficiently broad and will also be conditioned by the pace of the upcoming US elections whose maturity is in November 2020. So I come to the conclusion that:
TECHNICALLY: , rising enlargement triangle, regardless of the Chartism connotation that one will lend him, always is it that as long as we remain above the blue magnetic lines (area of attraction between sellers and buyers) in terms of These different indices will continue to rise. This game will end when we'll pass below the moving average of 250 periods. Until then, we have never gone below the moving averages. So the thresholds to be monitored are NASDAQ (7015), Dow Jones (24 500), S&P500 (2700). The objectives to be achieved are therefore 3000 pts ( S&P 500 ), 30 000 pts and approximately (DJIA30), and finally 8000 points (NASDAQ100).
FUNDAMENTALLY: Macroeconomics data relatively stable even though very bad NFP (75K released vs 180K expected), stable bond yield rate with increasingly frequent curve inversions (the market will eventually be accustomed and risk ignoring it), rate low borrowing, I personally believe that the will lower the rates to the maximum once this year or will not touch it outright; OPEC, Russia, and Saudi Arabia may agree to stabilize the price of oil barrel with targeted quotas by periods, PMI manufacturing and figure in stabilization, correct quarterly GDP even if below expectations (down 4%).
It is therefore for all these reasons, and despite my reading of the American economic and political situation, that I firmly believe that the indices still have the margin to progress and reach the historical record levels mentioned above.
IN TRUMP, EQUITY MARKET WILL TRUST...https://www.globalstreettrader.com/blog?lang=en