The S&P500 and NASDAQ indices have reported rises of 35 and 40 respectively following the large fall in March 2020 from the health crisis caused by the virus.
However, markets seem to be already discounting this problem and initiating a recovery, right?
Following the global pandemic declaration, markets around the world faltered and fell sharply, governments began making moves to try to save the situation by printing money fast to generate extra liquidity to inject into markets. The problem is that this liquidity has entered the hands of those who have the most money, even investing sometimes is their own companies (which were buying at outrageously low prices), to try to raise the quotes.
Even so, the small investor, the one who is most afraid of such a fall, still has little confidence in the market rise and that is demonstrated precisely by the rapid recovery. Since these same investors were the ones who caused the sharp fall of March.
In an era where anyone can buy and sell any financial asset from home in a matter of seconds, it’s no wonder the markets fell apart as they did. Widespread panic worsened and caused small positions to leave the market in minutes, leaving millions of investors with money in their accounts that it has not yet returned to the market.
For this reason, and having already injected large investors, or “strong hands,” the amounts provided by the government, but as small investors are followed in a liquidity position, markets are likely to fall again in the coming weeks.
The good thing about this situation is that it will bring back investment opportunities at attractive prices and new rebounds in which to get profitability. In addition to short trades looking to profit from the likely fall.
At times like this, it is key to have quality information at the right time. At RicaMarkets we offer you the opportunity to benefit from these situations trading with signals based on our own trades in cryptocurrencies, American stocks and commodity futures.
Every market situation must be taken advantage of, as in the short or very short term there are the great options of making high returns. The important thing is to be in the right place at the right time. So it doesn’t matter if the market comes bullish or bearish in the coming weeks, but don’t miss the opportunity.
In fact, did you know that the big fortunes in trading history were forged in large falls opening short trades? Join our team and you will see that success in trading is based on knowing when you are on the market. And with us you’ll know.
‘Don’t worry about taking highs or lows, this is a fool’s game’ – Jesse Livermore