08.12.2022 14:50

Santa Claus Rally: three negative factors reduce the chances of profit

Dear Clients and Partners!

Santa Claus Rally: three negative factors reduce the chances of profit Analysts believe that this year one should not count on the traditional stock market rally due to the threat of a recession, but speculative volatility is not cancelled. Few will risk making money on it. Recall what and how you can trade during this period.By the end of the year, the market is reanalysing numerous events and forecasts. Investors and traders are preparing for a unique phenomenon when some assets are abnormally growing by 1.5-2% per day, but now several technical factors may interfere with the profitable trend. The stock market has already shown strong growth, for example,  S&P500 rose by 13% in October, and another 10% in November, and this increase is already 2 times higher than the average quarterly dynamics. A technical correction is needed. US Consumer Price Index (CPI) for November will be released the day before the final Fed meeting  this figure, together with the surprises of adventurers from the Fedreserv, can greatly affect the dynamics of the closing of the market year. The onset of a recession usually implies a reversal in investor sentiment and increased interest in lower-risk assets.Other assets also show speculative dynamics during the Santa Claus rally. For those who are willing to take risks, we recommend paying attention to the following statistics accumulated over the past 10 years: Dow Jones Industrial Average (NYSE: DJI)  71% chance of growth, the average return for December 1.4%; S&P 500  probability of growth 73%, average return no less than 1.5%; Nasdaq Composite (NASDAQ: COMP) 61% and return for December about 1.7%; The chances of Russell 2000 (NYSE: RUT) rising are estimated at 83% with a yield of approximately 2.8%.Once again, we remind you of the increased requirements for money management in such transactions, but it is clearly not worth missing such an active market period.Profits to yall!#ForexChief #nyse #stocks #NASDAQ #forexnews #FedMeeting #StockMarketRally #worldnews #Fed #DowJones

Sincerely yours,
ForexChief Team