December 31, 2019

Stock market review for December 31, 2019

What do we see in the market?

Nasdaq 100 🇺🇸

13 weeks of growth in the index of the high-tech sector of the USA are very pleasing to global investors.

The year ends on a positive note, however, the most important questions are: when will investors start taking profits?  Will the rally continue in 2020?  How will the respite proceed: lightning-fast collapse or gradual unloading of positions?

The companies in the index, in the relative majority, feel good, but exchange trading works according to certain laws: to go further, you need fuel, and fuel for the markets is money.

Nikkei 225 🇯🇵

Trading on the Japanese index for the last four months has been in a steady upward movement, while the previous three weeks the price has been moving not so confidently.

All three weeks, the trade was downward.  Each subsequent month of movement became weaker than the previous one, which means that the upward trend is gradually dying away.

From a long-term point of view, the price has already approached the area of ​​the most important resistance, from which sellers twice in 2018 seriously hit the price down.

FTSE 100 🇬🇧

Great a year-long rally was demonstrated by the UK stock market index. The growth was really enchanting and at the moment the price is being traded close to the area of ​​key resistance in this market.

The area of ​​historical highs in 2018.  Common sense tells us that the news around Brexit has already exhausted itself from a negative point of view, which means that Brexit, if it happens according to Johnson's plan, can provoke a positive for this market and become a driver for breaking the 2018 highs.

The reason why we think so is because after the victory of the Johnson party in the last election, the markets reacted with rapid growth, and Johnson is the figure who is eager to hold Brexit.

But the risks are too great, and investors can easily take profits for themselves, and 2020 will be held as part of a downward correction.