Stock market review January 10, 2020

What do we see in the market?

Nasdaq 100 🇺🇸

The ended trading year gave investors a record profit under the influence of D. Trump, as well as favorable economic data.

Will there finally be profit taking, and why did Trump launch a confrontation with Iran, increasing geopolitical tension to the maximum?

The unloading of positions by large players is already beginning in stages. It proceeds neatly so as not to frighten away simple onlookers who want to buy at the maximum price.

The general market will remain bullish in any case, but it is worth taking a closer look at individual stocks for a bearish game. The dynamics of stocks in the index is very mixed.

Such giants as Apple, Google, Amazon, Microsoft will maintain stability, since the vast majority of global investment funds and significant investors invest in them.

Geopolitical events cannot ignore American stock markets. Against the background of the aggravation of the situation, after the shelling of US bases in Iraq, investors panicked a bit and the index showed an intensive decline. However, after Trump's soft performance, the markets managed to regain their lost positions within one trading session.

Iran said that revenge has happened, and the US would introduce a new package of sanctions against Iran. Globally, the situation remained as it was before the conflict began, while Trump was careful in order to protect the world from a large-scale military conflict.

The deal with China is going according to plan, so there will be no time in excess of strong drivers on the market. The Fed, in turn, prints money and sends it to the stock market, so many stocks can strengthen, but the fact that investors still take profits remains a fact.

For some instruments, it is time to open short positions, despite the fact that Trump's statement helped the index renew its historic high.

Nikkei 225 🇯🇵

History demonstrates 2 serious downward rebounds in the price from the current area, which may provoke a third, in the same market showed excellent dynamics in 2019 and a correction would be logical for the outcome of this situation.

Economic indicators inspire confidence, but there is nowhere to reduce percent rates, and growth drivers are gradually ending. The month was closed with power parity and drew “doji” on the chart, the past week passed as part of a downward domination.

Only the most sophisticated will buy the index at an inflated price, while for sellers a good ratio of profit to risk arises.

The general mood is downward. But against the backdrop of de-escalation of potential military actions by the United States and Iran, in the moment they added positive index quotes.

From a long-term point of view, this is just one more opportunity to sell the index more expensively. A confident upward scenario from a technical point of view is not visible yet, while the price is favorable for short positions.

FSTE 100 🇬🇧

Confident upward dynamics characterizes the UK stock index. 2019 closed at local highs, however, historical extremes have not yet been reached.

It is worth considering Johnson's wishes regarding Brexit and keep in mind that this event can dramatically and unpredictably affect the dynamics of the British securities market.

From a technical point of view, the prerequisites for a decline are not yet visible: trade proceeds steadily, while above the significant levels that were broken at the end of the year.

The general market sentiment is stable until Brexit begins.

Trump, in the framework of yesterday’s appeal, hinted at a common fight against terrorism and hinted that the United States has many friends in any case.

American markets responded positively to his speech, while the FTSE Index only strengthened slightly. Despite geopolitical risks, the British market has shown stability.

The ratio of supply and demand suits both sides and the market is waiting for a key event of the current month, trying not to pay attention to the situation around Iran.

Market stability helps investors stay cool.
The most interesting thing about this instrument is waiting for us at the end of the month. Sudden changes are not expected at this time.