HomeHome SearchSearch MenuMenu Our productsOur products

This might be the BEST thing you read today…

by , 17 November 2020
This might be the BEST thing you read today…
Just one week ago, I was feeling very bearish and down with the markets.

I thought Donald Trump would stay president until 2024. I thought we weren't going to see any signs of a vaccine. And I thought South Africa would head back into lockdown.

Boy was I wrong. And I couldn't be any happier with being wrong.

Before we knew it, there was a massive change of hearts in the markets this week.

First, we had Democrat and well-respected Joe Biden take the presidential throne with Kamala Harris (first Indian-American woman) becoming vice-president.

And just a few days later, a promising vaccine for COVID-19 was announced.

It's really refreshing to be writing a positive article for a change.

And this positivity is why I expect the S&P500 to rally 7.9%.

Let's get to it…

________________________________________
 
 
HOT UPDATE:
 
Pickpocket Trader just closed a massive 243% gain
on the Rand…
 
In the same month, his members could've banked another 111% on a play with the Ozzie dollar and a quick 21.98% on the British Pound!
 
Read on to find out how you can get in on the next big gain!
 
________________________________________
 
A standing world ovation goes to – Pfizer and BioNtech
 
Early last week, Pfizer shares soared 15.4% closing up 7.7% as they (Pfizer and BioNtech) released news of a vaccine they developed for COVID-19.
 
They showed data where vaccine shots may be 90% effective, in its 44,000 patient phase 3 trial, at preventing the virus.
 
It’s also stated there are no side effects and that the next data report will be released at the end of November…
 
If all goes well, the FDA could even approve it by then.
 
In fact, the pharmaceutical giant said it has already planned to set up authorisation for emergency use and distribution of the drug, with U.S regulators later this month.
 
And to lift the spirit for investors we had Ajay Rajadhyaksha, head of macro research at Barclays say,
 
“If that proves to be correct, it is a significant positive surprise and increases the odds of a quicker return to normalcy,”
 
Anything that will bring positivity to investors and the economy, are strong signs for upside in the markets…
 
Sectors are awakening for the first time since March
 
After the presidential results as well as the vaccine news was released, we saw the S&P 500 move above a key technical level at 3,588.
 
This lead to the index moving to all time high prices as well as entering into an uptrend.
 
And you know what drives an index? The stocks that make up for it.
 
In fact, we saw a number of sectors surging including.
 
Healthcare
Industrials
Materials
Financials
Retailers and more…
 
This price upside has also arrived perfectly in time for the seasonal reason why markets move up – The Santa Claus rally.
 
This is where individuals and investors tend to spoil themselves on Christmas and retail shopping, holidays, buying shares and other goodies from their bonuses or savings.
 
This W Formation is showing a 7.90% rally for the S&P500 before year-end
 
 
If we look at the daily S&P500 chart, you can see that since September 2020, it formed a large breakout pattern known as a W Formation.
 
A W formation is a price pattern that resembles the letter W with two rounding bottoms with a high and low price between (Shaded area).
 
With this W Formation – the low price is at 3,263 and the high price is at 3,543.
 
Last week, we saw the price break up and out of the high level at 3,543. This tells me that the buyers (bulls) are winning and we can expect further momentum up.
 
To calculate the next price target, we’ll use the High-Low formula.
 
This formula finds the price difference between the high and low price of the W Formation and is then added to the high.
 
Which in this case is:
 
Price target = (High - Low) + High
                  = (3,543 - 3,263) + 3,543
                   = 3,823
 
________________________________________
 
Just released: 5 Shares set to rocket in 2021… Read this now or miss out on the buying opportunities of the decade.
 
________________________________________
 
Here are three ways to profit from the 7.90% S&P500 rally 
 
First, I can buy the S&P500 CFDs and hold it until it hits my price target.
 
Second, I’ll be waiting for Trader X’s international trade ideas as he takes advantage of the S&P500 rally to come. This can range from international stocks, indices and even currencies… You can read more here…
 
Third, you can wait for my SMS as I’ll be looking for companies that will rally when the S&P500 rallies. This is because the S&P500 is a leading indicator for the JSE.
 
  
Trade well,
  
Timon Rossolimos
Managing Editor, Trading Tips


This might be the BEST thing you read today…
Rate this article    
Note: 5 of 3 votes

Related articles



Related articles




Trending Topics