The main stock markets in Europe and the US want to put the bullish brooch to a week in which volatility has been the main protagonist. The bulls want a day that although it will not serve to erase the losses accumulated throughout the rest of the weekAt least if it serves to distance the main selective from the support levels they have approached in the last few hours.
And it is that, the stock markets of Europe returned yesterday to approach the levels of support that for a long time has been indicating that it is necessary to watch fromeco traderas are the lows that the EuroStoxx 50 reached in March in the zone of the 3,400 points, which were 6% below closing levels. And that can only mean one thing to the savvy investor: it’s time to think about buying rather than cowering and selling.
For this, fromeco traderLiquidity has already begun to be used to increase exposure to the stock market again. “The strategy is to use the ammunition that we have been accumulating these weeks in the form of liquidity to set foot in the market, taking advantage of the scope of the support and objective zones of each one that I have been recommending waiting for a long time,” highlights Joan Cabrero, technical analyst and advisor to the premium portal of the Economist.
The second buy signal will be given by the principal market, wall street. As it could not be otherwise, until the Nasdaq 100 has not reached the zone of the 11,800 /12,000 points and the S&P 500 has not returned to the 3,800 integers will not start using this ammunition. “It is the area that I have been pointing out for weeks as the optimal one to make first purchases. It is ideal to look for an upward resumption attempt from there or, at least, another powerful rebound”, he highlights.
In this sense, you have already chosen how to spend that precious ammunition. “I am in favor of buying to increase the exposure of the Ecotrader model portfolio by about 15 points, to be around 50-55%,” says Cabrero, who already yesterday recommended entering the EuroStoxx 50 and the Dax 30 (selective which until now it keeps out of the portfolio), and raised the weight in indices such as the Nasdaq 100, the S&P 500, the Dow Jones or the Ibex 35, on which there is an open strategy since November 2020.
The euro, closer to parity against the dollar
The foreign exchange market has not been immune to the volatility of the last few hours in the stock market. One of the pairs that has been most affected is the euro/dollar, which yesterday lost for a good part of the day the 1.04 dollars per euro. With this decline, the pair approaches the change one by one in front of greenbacksomething that is no longer ruled out even because it is technical.
This is what Joan Cabrero, technical analyst and adviser to eco trader, which ensures who to explain it looks at the behavior of the dollar index. “This selective is beginning to break the 104 units and press the 105. If it exceeds it a lot, I fear that a next fall in the dollar (rebound in the euro) would be temporary and prior to greater increases (falls in the eurodollar) since the dollar index would have traveled to its highs of the year 2001 in the 121 units.
