Stock Market Today
Latest update: 23-10-2020 20:06
I constantly follow all the stock market news. I only post the stock market news that really sets stock markets in motion.
Hope but little eye for reality. European stock markets were still doing very well today. A number of better-than-expected business figures took over in Europe.
The question is whether you should still attach much value to those figures. These are the numbers up to October 1. The 3 months before there were no lockdowns and the European economy picked up again.
This month a rapidly increasing number of corona measures. Immediately reflected in economic figures. The composite (industry and services sector) purchasing managers index contracted again in the EU this month. The lowest level in 4 months.
The influence of the corona measures is clearly visible because France is doing considerably worse than Germany, where the second corona wave started much later.
Those figures for the third quarter may turn out to be better than expected for a number of companies. Those over the fourth quarter will be a lot worse again. Anyway, that's only for January.
In the US, the American support package still plays a major role on the stock markets. It is increasingly appearing that the US bailout package is a kind of last straw that investors still draw hope from.
Kind of if that comes, everything will be fine. However, it will unfortunately be a drop in the ocean. There is also the hope of Biden as president. He would be the man who will increase stock markets is the thought.
I have a completely different view on that and will come back to it in the weekly forecast. When I look at the stock markets, thanks to that hope, few investors are worried.
Strange when you consider that we are heading for large-scale and comprehensive lockdowns that could kill the already weakened economy.
The gold and silver price
The failure to make ends meet for the American support plan continues to put pressure on gold and silver. However, the somewhat weaker dollar provides support. Investors have been taking a wait-and-see approach for some time now.
They do not dare to buy, afraid that if the support plan fails, they will be temporarily in the red. They also don't want to sell because they don't want to miss out on the next strong rise. As a result, everything comes to a standstill pending the support plan.
As a result, for gold and silver, a sideways movement within a fairly narrow bandwidth. The same wait-and-see attitude with regard to mining stocks. This is clearly visible in the generally very low turnover in mining stocks. Usually even less than half of normal.
However, the bandwidths are a lot wider for those mining shares. And that means that as a stock approaches the lower end of that bandwidth, some of the faint-hearted will exit at a loss.
Very unnecessary when you look at the bigger picture. The mining shares are on average today with the markets still open slightly in the minus. That is certainly not disappointing for a Friday. Because that is usually the worst day for mining stocks.
A day with little movement. This week, however, a downward trend has emerged. In mid-July the AEX set a top around 586. In mid-October a lower top at 575. In September, a bottom around 530.
For further confirmation of the downward trend, a fall below 530 is now required. There are 2 comments to make.
First, the technical analysis is a useful tool, but not the force that will determine the stock markets stands. Secondly, more than a week before the American presidential election, anything is possible in the near future.
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