The London Stock Exchange is an English financial institution, it has played an important role in banking, money and investment for hundreds of years. Relative Strength Index – This stock market analysis tool looks at a comparison of the amount of days a stock ends on a positive note and the amount of days it ends on a negative note. Bollinger Bands – This type of stock market analysis is recorded as a plotted group of three lines. All in all, you must use some sort of stock market analysis if you want to be successful in trading on the stock market. Over the weekend China’s top stock brokerages pledged that they would collectively buy at least 120 billion yuan (£12.3 billion, $19.3 billion) of shares to help steady the market, with backing from the People’s Bank of China.
So far it has failed to curb the huge volatility that has been plaguing China’s stock markets recently. The stock market tends to behave during Thanksgiving week the same way it does during Christmas week with light volume and a generally bullish tendency. Both the bonds market and the options market reflected this cautiousness with investors buying into the safety of bonds and options traders trading in favor of put options.
However, investors were clearly cautious ahead of this year’s Thanksgiving due to how active the ISIS has been recently, increasing the risk that they may just strike hard during the holiday weekend, causing the market to slump. It was indeed an extremely rare period where both the short term and long term outlook for the market is this uncertain. Even though the general market is so uncertain, certain pockets of opportunities still exist and me and my Master’s Stock Options Picks subscribers got into one today and I will report on the outcome.
For now, the market remains in short term bull trend within an intermediate and primary neutral trend. The market was negative exactly how I predicted it last Monday morning due to the combined effects of a grossly short term overbought condition brought about by 6 consecutive positive weeks as well as a looming BIG resistance level with the rate hike hammer back again as the catalyst for all these. For now, the market remains in short term bear trend within an intermediate and primary neutral trend.
Such readiness to go straight down upon meeting a resistance level reminded me once again of August 2011 and October of 2007, when the market struggled at a certain new high, took a hit, came back up to test the new high again just to be beaten down into a very significant down trend. In fact, this pattern falls exactly within the structure that I expected (mentioned in my reports months ago) for major market crashes where the market struggles around a new high price for an extended period of months before going into critical failure for the ensuing market crash.