Jump to content

How to deal with expected incoming stock market volatility


MongiIG

Recommended Posts

With plenty of strategists suggesting that this recent bear market rally is about to run out of room, how should we, as traders and investors, deal with the psychology of making money in the markets?
 
IGTV’s Jeremy Naylor caught up with Luke Hickmore, investment director at abrdn. The discussion began by analysing the current market pressures and where indices may go in the next few quarters, then moved on to the attitude we need to profit.

 

 

 

 

 

igtv.PNG

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • image.png

  • Posts

    • AUD/USD surged to .6693, its highest since January, driven by cooler US inflation and China’s property market measures. Upcoming RBA meeting minutes will be key.   Source: Getty Images   Forex AUD/USD United States dollar Inflation Australian dollar China Written by: Tony Sycamore | Market Analyst, Australia   Publication date: Monday 20 May 2024 08:11 Last week was a stellar one for the AUD/USD as it finished at .6693 (1.37%) for its highest weekly close since the first week of the year. In the first instance, the AUD/USD was boosted by cooler US inflation data, which weighed on a tired US dollar and reinforced expectations of Fed rate cuts before year-end. The second pillar of support for the AUD/USD came after the Chinese government announced a raft of measures on Friday afternoon to boost confidence in the Chinese property market. Measures announced included lowering deposit requirements and urging local governments to buy unsold homes and convert them into affordable housing. While more needs to be done to completely revitalize the Chinese property market, last week's announcement appears to mark the conclusion of seven years of pain after XI Jinping famously said, "Houses are for living in, not for speculation." After a mute response on Friday, the announcement's impact has flowed more readily through markets today. Evidence includes a 2% rise in the price of iron ore futures in Singapore to around $117.70 per tonne, while copper futures hit a new high today of $5.1990, up almost 3% at one point, following a 3.5% gain on Friday night. We would expect the impact to continue to extend into the AUD/USD; however, before it does so, there is the small matter of the RBA meeting minutes, in which the RBA sounded less hawkish than feared. RBA meeting minutes Date: Tuesday, 21 May at 11.30am AEST The minutes from the Reserve Bank of Australia (RBA)'s May meeting are scheduled to be released on Tuesday, May 21, at 11:30 am. At its board meeting in May, the RBA kept its official cash rate on hold at 4.35%, as widely expected. Despite a higher-than-expected Q1 inflation read, the RBA was less hawkish than feared as it retained a balanced bias, noting that it is not "ruling anything in or out". The RBA revised its inflation forecasts for this year higher, leaving its inflation forecasts unchanged for the end of 2025 and the end of 2026. At the same time, the RBA revised its growth and unemployment forecasts slightly lower. The minutes will be closely scrutinised to determine what options the RBA Board considered at its Board meeting in May and any clues behind the RBA's less hawkish than expected tone. RBA cash rate   Source: RBA AUD/USD technical analysis On the weekly chart, the AUD/USD has made an encouraging move towards the upper bound of the contracting multi-month bearish triangle. Downtrend resistance from the January 2023 .7158 high is currently at .6750ish. Uptrend support from the October 2022 .6170 low is at .6340ish. AUD/USD weekly chart   Source: TradingView Last week's post-US CPI surge above resistance at .6650/70 has increased the chances that the AUD/USD based at the April 19 .6362 low. Providing the AUD/USD continues to hold above support at .6670/50ish, it keeps the short-term uptrend intact and the AUD/USD on track for a test of downtrend resistance at .6750ish. On the downside, the AUD/USD has initial support from the 200-day moving average at .6520ish and below that, a layer of support at .6480ish from swing lows in March and April, reinforced by the February .6442 low. AUD/USD daily chart   Source: TradingView Source: Tradingview. The figures stated are as of 20 May 2024. Past performance is not a reliable indicator of future performance. This report does not contain and is not to be taken as containing any financial product advice or financial product recommendation.     This information has been prepared by IG, a trading name of IG Australia Pty Ltd. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
    • As the crypto landscape continues to evolve, having a reliable and feature-rich wallet is essential for investors and enthusiasts alike. Bitget Wallet has emerged as a leading player in this space, offering a comprehensive platform that connects users to over 90 major blockchains. As Bitget Wallet celebrates its 6th anniversary, let's explore what sets it apart and why joining the celebration could be a lucrative opportunity for crypto enthusiasts. DEX Aggregation and Best Prices Bitget Wallet goes beyond the traditional role of a crypto wallet by acting as a top DEX (Decentralized Exchange) aggregator. This means users can access the best prices from decentralized exchanges, ensuring optimal trading outcomes. By leveraging advanced technology, Bitget Wallet empowers users to execute trades seamlessly and efficiently across various DEX platforms, maximizing their potential returns. Exploration of Premium Cryptocurrencies One of the key advantages of Bitget Wallet is its support for a wide range of premium cryptocurrencies and digital assets. Whether you're interested in established coins like Bitcoin and Ethereum or exploring the latest altcoins, Bitget Wallet provides access to an extensive selection of assets. This diversity allows users to diversify their portfolios and take advantage of emerging opportunities in the ever-changing crypto market. Celebrating 6 Years of Innovation As Bitget Wallet marks its 6th anniversary, there's no better time to join the celebration. Over the past six years, Bitget Wallet has continually evolved and adapted to meet the needs of its users. From implementing cutting-edge security measures to introducing innovative features, Bitget Wallet remains committed to providing a superior user experience. Earn with Bitget Wallet To commemorate its 6th anniversary, Bitget Wallet is offering users the opportunity to earn rewards by participating in various activities and promotions. Whether it's through staking, trading, or simply holding cryptocurrencies in your wallet, there are numerous ways to earn rewards and grow your assets with Bitget Wallet. In summary, Bitget Wallet stands out as a reliable and feature-rich platform that caters to the diverse needs of crypto enthusiasts. With its DEX aggregation capabilities, support for premium cryptocurrencies, and ongoing commitment to innovation, Bitget Wallet provides users with the tools they need to succeed in the world of crypto. As Bitget Wallet celebrates its 6th anniversary, now is the perfect time to join the celebration and unlock the full potential of your crypto assets.
    • Copper, gold, and silver prices surged to record highs in Asian trade on Monday, with silver crossing $30 an ounce. Gold's 18% year-to-date rally is attributed to Chinese buying, geopolitical tensions, and expectations of falling US interest rates. Copper prices are soaring due to China's efforts to revive its struggling property market, including $1 trillion in funding for affordable housing. Traders are scrambling to source physical copper to cover large short positions in futures markets, driving up trading volumes. US stock indices hit new records last week after inflation data, but yields rose on Friday as investors await more economic data. This week features preliminary PMI figures, Fed minutes, Nvidia earnings, and speeches from policymakers like Fed Vice Chair Philip Jefferson.  
×
×
  • Create New...
us