Gold 1845,775
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EURUSD 1,2096
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DJIA 30139
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OIL.WTI 52,01
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DAX 13637,50
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So, after the sharp fall in US stock markets on Wednesday, the following question was relevant. Will the correction continue and January close in negative territory, signalling a difficult year for the bulls. Or will the bulls get their act together and push the stock indices into the positive territory.
S&P500
On Thursday we got the answer to that question. The US stock market went sharply up, with the bears closing short positions in a panic. However, we did not forecast such a sharp upward move yesterday. Why so?
Indeed, in yesterday’s reasoning we expected to see a new strong red candle or a small rise, on what investors would pick up the cheaper stocks.
Apparently another force has entered the market. The name of which is the American ruling class. Indeed, who wants to see stock indices fall? A new U.S. president to be constantly rebuked for the fact that markets were rising under Donald Trump? Maybe Janet Yellen, the new head of the U.S. Treasury? If the markets fall, they will have to print huge amounts of money again to stop the fall. And then there is the situation of new lockdowns on the back of a pandemic around the world.
Apparently the powers that be have decided to bring the uptrend back to the stock markets as a matter of urgency before it is too late. The result is clear to see. On Thursday the fall of the previous day was completely recovered.
What conclusions can be drawn from this? Most likely 2021 will once again be the year of the bulls and stock investments will bring good returns to investors.
08.00 Germany’s Q4 GDP data
16.00 US University of Michigan Consumer Confidence Index for January
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