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Ixic-nasdaq

Nasdaq Composite: Rise of the Noise Traders I have to highlight that, the American stock market in 2021 is fundamentally different from the market in 2018 or 2019. Unprecedented amount of new investors have jumped into the stock market since April 2020, lured by zero commission brokers, close to zero interest rate and the boredom of COVID restrictions. Like I have mentioned before, the period of 2020-2025 bear many similarities with 1921-1929 and 1995-2000, e.g. pent up demand from the Great War and Spanish flu, super easy monetary policy, everyone suddenly becoming interested in the stocks. Perhaps the majority of those new investors can be identified as noise traders of behavioral finance. They believe in information which they think would help them make quick profits but in fact they are no better than random noise. A market full of noise traders tend to either overreact or delay reaction against important news, making the efficient market hypothesis completely unrealistic. The market might be overreacting to the potential of high inflation right now, so IXIC will probably drop to 12400, testing the 200-day and 10-month moving average and forming a double bottom with the 5 March 2021 trough. Sooner or later, noise traders will realise that it is still too early to worry about monetary tightening, then IXIC will roar back into 14000s, going up to 17000 in late August and early September. The tech stock market is highly sentimental right now. If we get more good news in the second half of this year, IXIC could go as high as 20000 this year, in a similar fashion with the meteoric rise of 1997. Either way, the big picture remains extremely bullish, so the doomsayers and short-sellers would definitely be crushed by hordes of noise traders who don't give a damn about 'overbought technical indicators'.
TVC:IXICLong
by MarcusAu
1
The Scariest Chart in Dow Jones This is the Log chart of where we are right now scrolled back over a 100 years. We all know how important trendlines are, and the first time we touch a trendline, we will expect rejections from the trendline. Currently the DJI sits about ~600 points away from the trendline from the time of writing. The trendline high sits at about ~33500 points (we are not far away) If we do get rejections from the trendline, we can see a rather nice correction in the stock market. The recent selloff was very much only in the growth stocks sector, Indices like SPX & DJI have barely budged (in fact we have seen a rotation into DJI). Expect a correction in the overall stock market very soon within a few months time. How big and how deep we go no one knows.
TVC:DJI
by MARKIOASH
The January Effect ExplainedIn this post, I'll be talking about the January Effect as the stock market looks to open for the first time in 2021. The January Effect - This is a hypothesis that securities' prices rise in January more than any other month of the year. - This allows investors to purchase prices prior to January, when it's relatively undervalued, and sell for a profit in January when prices are valued at the right price/overvalued. - The premise of this hypothesis is that the market is inefficient - There have been many arguments posed to explain this phenomenon - Some say that this is due to the sell-off that occurs during December, as investors realize their capital gains - Others say that it has to do with people investing their year-end bonus into the financial markets - Nonetheless, it's important to understand that the January Effect does not take place all the time. Mike's Insight A lot of the major companies, almost dominantly tech companies, which lead the indicators have had a decent year despite the chaos. Additionally, with the stimulus package and expectations regarding covid vaccines, I believe that there's a high probability that we'll witness the January Effect this year. If you like this educational post, please make sure to like, and follow for more quality content! If you have any questions or comments, feel free to comment below! :)
TVC:IXIC
by Michael_Wang_Official
3