Stock Groups

Bucking the Market Trend By StockNews

[ad_1]

© Reuters. Boldly following the market trend

Nothing excites traders or investors more than the market. And, this past week was certainly confounding… but in a good way. We discussed previously that low-priced stocks are more likely to outperform the market during down days because liquidity tends not to disappear first at the margins. So, it was surprising that our portfolio has been steadily gaining while the S&P 500 (SPY) has encountered significant selling this week. In this week’s commentary, I will discuss why this is happening and what it means. Read on below to find out more….Over the past week, the S&P 500 is down by 3.5%. What’s interesting is that the is down by 2.3% and the microcaps index (IWM) is down even less – 1.6%. Our portfolio was 2.1% higher over the week.

What is the reason for this? I believe we are experiencing selling pressure at the Fed, signaling that there is a potential taper. This could be happening either at the current meeting or next. This has led to a strong in rate which is pressing many growth and income stock.

This weakness, however, is compensated by an improving economy especially because coronavirus incidences continue to plummet.

Continue reading on StockNews

Disclaimer Fusion MediaThis website does not provide accurate and current data. CFDs are stocks, indexes or futures. The prices of Forex and CFDs are not supplied by exchanges. They are instead provided by market makers. As such, the prices might not reflect market values and could be incorrect. Fusion Media is not responsible for trading losses that may be incurred as a consequence of the use of this data.

Fusion MediaFusion Media or any other person involved in the website will not be held responsible for any loss or damage resulting from reliance on this information, including charts, buy/sell signals, and data. You should be aware of all the potential risks and expenses associated with trading in the financial market. It is among the most dangerous investment types.



[ad_2]