MARKET – RED ALERT
When stocks across all sectors go into the red zone for more than a day or two and gold on the COMEX goes from 1820 to 1920 in a couple of sessions – fear has settled in the hearts of investors.
In an era of Uranus, Cryptocurrency and clean air trading, self-preservation instincts compel a trembling hand to send orders to buy stocks of companies that mine gold.
Take a look at the weekly cross-section of the stock market on the planet – RED ALERT.
In the green zone, only companies in Canada and Africa, which produce gold, and pharma. When you’re scared – you buy pills at any price.
Having studied the stock indices of Germany, Britain, France and the Eurozone they are all below the waterline. I don’t think it’s because of the Central Bank’s forthcoming reports on interest rate changes.
Companies that produce gas and oil are also dumping stocks as winter is over and demand for black gold is at its lowest point.
On the slide noted that 5 days in a row trading volume is +\- around 220k and marking on the buy side. When the same number of contracts are traded from day to day and there isn’t a sudden surge of a few trillion – pushing the price higher when everyone is busy dumping stocks and buying gold bullion is unlikely to happen soon.
Watch out for pharma now, if they start buying greedily – look out for COVID23 “Zombie Edition” lockdown soon.
Red Thursday is going to be volatile as the ECB is expected to raise the interest rate to 3.5% which will have repercussions in many countries and more fear will visit the stock markets.
The spring looks like a speculative one and it is extremely easy to make some profits on a paralyzed market.
Those who traded in 2008 know what I mean.
VolFix Company / author & trader: Mikhail Lemah