CURRENCYCOM:US500
The ''W'' Shape has currently formed at the peak of the centre .
Last Friday we can see that prices have turned , continuous rally has ended.
We foresee a pullback to the lows before recovery
Fundamentally, Companies are in Receiving Fiscal Aids, with new investors buying up the stocks, in view of 2008 opportunistic moments. But when the price starts to pullback, these amateur investors will be the first to retreat.
Logically, the economy is on a hold, the impact on the lockdown and the aftermath is yet to be realized.
We foresee higher unemployment rate, with lower productivity growth & cashflow problems to surface in near terms.
Debt defaults are just part of the bundle with major listed firms goes into liquidity.
Undervalued stocks are tempting, but without fundamental strength of the business model, beating historical lows are normal.
Look out for good bargain Opportunity with energy stocks that have good cashflows with lower debt ratios to pull thru these period.
The ''W'' Shape has currently formed at the peak of the centre .
Last Friday we can see that prices have turned , continuous rally has ended.
We foresee a pullback to the lows before recovery
Fundamentally, Companies are in Receiving Fiscal Aids, with new investors buying up the stocks, in view of 2008 opportunistic moments. But when the price starts to pullback, these amateur investors will be the first to retreat.
Logically, the economy is on a hold, the impact on the lockdown and the aftermath is yet to be realized.
We foresee higher unemployment rate, with lower productivity growth & cashflow problems to surface in near terms.
Debt defaults are just part of the bundle with major listed firms goes into liquidity.
Undervalued stocks are tempting, but without fundamental strength of the business model, beating historical lows are normal.
Look out for good bargain Opportunity with energy stocks that have good cashflows with lower debt ratios to pull thru these period.