Since Friday the stocks market alongside Indices had enjoyed an enormous upside and a positive wave of buyers stepped in the market with fresh highs on Nasdaq and the S&P/Dow rising an overall 3%-5% – what a boom…
However, not everyone thinks that there is a lot of room for optimism as an indicator that was tested for the past 70 Years had popped up on some analysts screen and started showing some warning signs…
Howard Gold from MarketWatch published this morning this article that shows why the Unemployment rate that rose last Friday from 3.8% towards 4%(from the lowest rate since 2000) – is a bad indicator for stocks – https://www.marketwatch.com/story/this-reliable-indicator-of-a-bear-market-in-stocks-and-a-recession-just-flashed-a-warning-2018-07-09
When taking under consideration the behavior of the stocks market in the past 20 years and 2 financial cycles one needs to remember how it looked in the past 2 bear markets – and thus build their portfolio properly with expectations for everything and be ready for anything:
Nasdaq
Nasdaq – Ride the trend is a smart thing to do(don’t fight the market) – on the other hand thinking about building a short position is indeed tempting here…
What would you do?
GBP/USD
GBP/USD – dropped yesterday by up to 150 pips in 3 hours due to the resignation of Mr. Boris Johnson – https://edition.cnn.com/2018/07/09/uk/theresa-may-Boris-Johnson-David-Davis-intl/index.html
Important Events
In 1.5 hours there will be additional movements on the currency as several announcements are expected – https://www.forexfactory.com/calendar.php?week=jul8.2018:
GDP m/m
Manufacturing Production m/m
Goods Trade Balance
Construction Output m/m
Index of Services 3m/3m
Industrial Production m/m
So which way to take?
Share your opinion below, and stay tuned – more to come…
