In just few weeks stocks moved much higher. You can spot it on S&P500 chart which is just below 1370 resistance. We can expect to have a correction near that levels that is why I moved my stop losses higher.
sp500 chart
Buy there is also a second scenario. Bulls are lately very strong so it is possible that the price will break above resistance. Then the next target would be around 1500 points (high from 3 years back). Of course it is to soon to talk about that scenario, but I wanted to show you that this is possible. For now let’s focus on 1370 resistance line. As you can see on rainbow chart, the trend is strong, so this will be an interesting fight!
You should also check the other charts. For example the eursud is moving up strong, so is the oil. Also there is a strong raise on gold – is it an end of correction?
Stock prices are rising since few months. Is it still a good time to buy stocks? Of course investors trading with Fibonacci numbers are just opening mainly short-term positions. What about investors who prefer to follow longer trends? I can see one major risk in the horizon… Yes, Greece.
There is too much rumors about Greece. What is worse, they are now negotiating to receive another help from European Union (read: Germany). People in Greece are protesting against another savings program. The problem with Greece is not solved and it can explode any time.
On the other hand markets are booming, not only in U.S., but also in Asia and Europe.
For now it looks like investors are still buying. I want to profit from that so I’m looking for good opportunities. I keep my positions smaller than usual, because of problem with Greece. I think this is the best strategy – protect your investing capital. You do not have to invest 100% of your money if you are not sure that this is the best moment to do that.
Just do not try to gamble, because it always ends badly. Solid analysis, good money management and you will find good, long term trades.
Look at Sp500, it is just fighting with important resistance. So far bulls are in charge so it should be still a good time to look for some good stocks.
Are you investing in something? Houses, stocks, gold, currencies…? Or maybe you are too afraid to do that? Don’t be!
Thing is, it is a good time to look for investing opportunities. I know it may do not like the best moment to invest your money. Maybe it is not the best moment, but are you willing to wait longer?
What are good investing opportunities?
Plenty of them, but first some warning. You have to be careful with selecting your investment ideas. Situation is not perfect in the world, but we can try to make some money when others are too afraid.
investment idea
If you were looking to buy a house or apartment, now it looks like a good moment. Of course you have to remember that this market is in a downtrend and prices of houses are falling down. Some of them are very cheap already and you are buying your house for years! So even if you buy your house now, for a good (cheap) price and in time prices will go 5 or 10% down, is it really the end of world? I don’t think so. Couple years ago you would end up paying 50 or even more than 100% more. Check this page on Wikipedia about house bubble to see what I am writing about!
It looks that now bubbles are also in other countries, check this video about house market in Shanghai:
Another good investment idea seems to be stocks. We do not know if bear trend is over (probably isn’t because of unsolved problems around the world). Still there are some strong rebounds on stock market and you can get some decent profit from them. Of course here you would like to learn more about this topic because you can lose your money in trading stocks. Start from babypips.com or fibonaccischool.com which is about trading with Fibonacci numbers.
If you are unsure, check offer of invest funds. They have variety of funds – some of them agressive, and some less. You can chose mixed fund, which is investing some of your money more agressive, and rest in safer instruments.
house as investment
Always remember about diversification of your capital. Put some cash into stocks, some into bonds and some into saving accounts. Just do not put all in one basket! We do not know if this crazy situation in stock markets is over, and it is good advice to be careful with investing.
There are many more investing ideas like investing in metals, oil, bonds. In next articles I will present you more specific some of them.
