Stocks: filling the gap or selling the news?
The market is oversold. The US government has gone wild with stimulus (irresponsible monetary policy + bold fiscal commitments).
While the news has just been confirmed, on the weekly there seems to be an upward momentum to fill the gap (as marked).
In the mid-term, however, the US economy will take a larger hit. While the stock market could remain detached, panic selling is likely.
The context of any market panic will be:
which means that the remaining moves are limited.
I wrote an article on the economic & social impacts of the pandemic: drjlt.com/post/137/the-death-of-a-paradigm-the-human-economic-and-long-term-social-costs-of-coronavirus
While the news has just been confirmed, on the weekly there seems to be an upward momentum to fill the gap (as marked).
In the mid-term, however, the US economy will take a larger hit. While the stock market could remain detached, panic selling is likely.
The context of any market panic will be:
- near zero interest rate
- trillions injected already
which means that the remaining moves are limited.
I wrote an article on the economic & social impacts of the pandemic: drjlt.com/post/137/the-death-of-a-paradigm-the-human-economic-and-long-term-social-costs-of-coronavirus
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.