Market Recovery or Short-Lived Adjustment
Are You Witnessing a True Market Recovery?
In recent weeks that include the kick-off of this week’s trends traders and analysts are seeing positive movement in many financial markets. This is providing investors with the opportunity to take a deep breath and revisit their portfolios. Day traders also will be evaluating their positions relative to rising market values. CNBC reported opinions from multiple sources that there is hope for continuing signs of market recovery.
A significant observation for US markets is three leading indicators that include NASDAQ, S&P 500, and the Dow Jones industrial averages which are each within 8% of their 52-week highs. Another factor of note is the CBOE Volatility Index (VIX) that has trended downward from a recent high of 25 to a current level of 16 and holding. The VIX is a well-regarded indicator of investor concerns or fears of investing.
Will Market Recovery Continue?
On the other side of the coin are concerns by at least US consumers that the economy remains fragile. In a recent All-America Economic Survey conducted by Hart-McInturff (which produces the NBC-Wall Street Journal poll) found that 32% of Americans polled believe the economy will get worse vs. 23% who view the economic conditions are good or excellent.
Concerns continue to resonate over the Chinese economic slowdown and increasing tensions between China and the US. Chinese military maneuvers in the South China Sea and China’s development of military stations on man-made ‘islands’ atop reefs in the sea continue to concern US and other countries in the region.
Citigroup Chief Economist Willem Buiter has also predicted that global monetary policies could generate a world recessionary period next year. Buiter predicts that not only China, but also Brazil and Russia are experiencing slowing economies and the possibility of rising unemployment. Singapore has also made monetary policy adjustments due to their now sputtering economy. Japanese stocks have similarly suffered losses in light of China’s economic impact.
How do Day Traders and other Investors React to Market Recovery?
In a word – caution. There are – without a doubt – opportunities in today’s global markets to profit from your trades. Research the investments you plan to buy and sell, then move forward. Fluctuations in markets are after all a day trader’s environment. Without those rises and falls the day trading market would not even generate the possibilities for wealth or even moderate gains you’re searching for. Be sure to utilize the tools for monitoring and analysis available to you from your online brokerage.
Long-term investors can likewise benefit from market recovery by exercising buy orders at the low end of the spectrum then holding for longer periods of time or until their target value has reached a predetermined sell point.
Even during periods of market volatility and recovery investors are presented with opportunities for profitable investments. It will always be important to maintain your investment strategy and use discipline in your investment choices. Monitor news sources to stay abreast of breaking news that can impact investments such as political situations or business events and earnings announcements.
Take Full Advantage of Market Recovery
SureTrader is a leading online stock broker for day trading that provides clients with functionality and tools that enable traders to make intelligent and informed trade decisions. Investors enjoy fast execution of trade orders and sophisticated analytical tools. Real-time market information presents day traders with the tools needed to move quickly when the time is right. SureTrader support is both courteous and available whenever you need it. Clients benefit from opportunities to make trades even in after-hours trading that maximizes investment options. Technology available to SureTrader clients includes desktop and mobile options using both iOS and Android devices. Contact us right away to get started with online trading that takes advantage of the best in online trading sites.
Disclaimer: SureTrader Blog is not intended for U.S. persons. Stock information is not to be viewed as buy or sell recommendations.