How Investors Will React To The Possible March Breakouts In Global Stock Index Futures?
Global stock markets have caught a very volatile environment recently with the global trade dispute involving the United States and China, with investors focusing last year quite exclusively on the global trade war. However, the market has shown little interest in the past few months as a result of the European debt crisis. This is interesting as global stocks are generally viewed as a good buy opportunity during a period of economic stability. Nevertheless, the markets are expected to undergo some amount of volatility as the global economy continues to recover from the recent global financial crisis.
So what are some of the indicators that investors need to pay attention to in order to be successful when trading the stock market? First and foremost, investors need to know how the stock market affects the countries in which they invest. For instance, an increase in the oil prices in China will not only have a significant impact on the U.S. Dollar, but it will also have a substantial impact on the Japanese Yen. Therefore, when considering investing in international stocks, whether they be national or offshore, investors need to determine if they will be better served by trading in nations with lower energy prices, stronger growth, lower inflation, and a stronger banking system.
Additionally, those who are looking for ways to make money by trading the stock market should consider opening their trading accounts with offshore banks. One major advantage to trading in these offshore jurisdictions is that most of them do not restrict the types of assets that can be traded. In addition, many of these jurisdictions boast free trade areas that correspond to their stock indexes. Additionally, many of the offshore banks typically have low commissions and other charges that can make trading the stock market attractive. Additionally, trading accounts with international trading partners can provide investors with a way to access multiple different markets at the same time, reducing the possibility that an investor will miss out on any profitable opportunities.
As mentioned earlier, many experts believe that investors need to focus more attention on the volume and price of the market. However, many more index traders seem to have overlooked this fact in recent years. In addition, experienced forex traders who understand technical analysis often ignore indicators altogether. This strategy often results in traders purchasing stocks based on hopes and dreams rather than a sound strategy. Therefore, traders who have mastered the art of technical analysis need to learn to eliminate the noise and focus on the volume of the market.
The majority of the world’s major markets are located in what is known as “bear markets.” These markets have low volume and high volatility. For example, while the Chinese markets have had a series of positive reports in recent months, they have also experienced a series of large losses in the past year. While this situation is advantageous for those investors who have made the purchase of bearish stock, those who have purchased bullish stocks are likely to experience greater gains because the market is more volatile.
One of the main reasons investors will experience retracement in the Global stock indexes during the next two weeks is due to the U.S. Federal Reserve’s announcement regarding the reduction of the U.S. stimulus package. According to sources, a report is expected in the second week of March and traders will begin searching for safe stocks. Traders should avoid buying any kind of long position during this time as the Federal Reserve will likely increase interest rates again in March.
On the other hand, traders will find that the opposite will occur as the Federal Reserve will likely begin raising interest rates once again. According to charts, investors will experience a massive reversal when the Federal Reserve begins tightening mortgage rates. Traders will need to pay close attention to the global stock averages when this happens because the U.S. dollar will likely be forced to strengthen against the Swiss franc.
While many traders will look to the U.S. dollar to determine the direction of the Swiss franc, others will make a correlation between the Swiss economy and the U.S. stock indices. If the Swiss economy takes a hit because the Federal Reserve raises interest rates, the Swiss stocks will suffer as well. Those who are holding Swiss bonds will experience a huge loss if the Swiss economy takes a severe beating. The Swiss stock indexes may also experience a significant change, but the key is to purchase only top-quality stocks that have high liquidity if you want to successfully profit from the Swiss markets during this tumultuous period.