Your Official Learning Hub on Trading, Investing, and Personal Finance
Author:Investa
Investagrams has helped thousands of Filipinos all over the world on their stock market journey. Now, we're aiming to help thousands more! Follow us on InvestaDaily for investing tips and stock market advice to help you reach your first million.
@pediong has been sharing his thoughts consistently in the Investa community ever since September 2020 and has been very active recently.
A couple of weeks ago, our featured trader posted his technical analysis on $ALI, a hot stock in the local market and real estate company led by the AYALA GROUP. $ALI was charted by @pediong predicting that $ALI was bound for a retest at the 27-ish area and bound for a breakout if it continues.
As the stock recently bottomed at around 22.35 (52-wk low), @pediong charted its support, volume, resistance, trendline, and RSI on the chart. @pediong felt an opportunity to have a good entry near the 52-wk low at the 22-24 area.
TECHNICALS OF THE TRADE
Technically, $ALI bottomed at 22 are which was also its 52-wk low. Thus, the stock recently broke the resistance 27ish area. After breaking the resistance, volume was still strong. ALI will now have to face resistances at the 30 and 32 levels as it tries to continue its uptrend. ALI is showing strength in terms of RSI as it continues to reach the oversold area.
@pediong was confident that this stock would further go up as it already bottomed at 22.35 (52-wk low). He also charted that ALI will go up as he indicated in his TA the supports, resistances, trendline, Volume, MA and the RSI. He charted a good entry near the support and possible resistance. Furthermore, he is planning his trades carefully as real estate industry isn’t in the best of positions right now.
FUNDAMENTALS
Ayala Land Incorporated is a real estate developer that focuses on real estate development of middle-high class properties. ALI is led by the AYALA GROUP, a prominent family in the country and a diversified holdings firm focused on real estate, telecom service, banking, malls, and others. As such, the stock is heavily affected by how the real estate market moves. Although interest rates remain high, the main driver for the stock right now seems to be the overall bullishness of the market as a whole.
WHAT SHOULD BE MY NEXT MOVE
As the stock recently broke its resistance it is bound for a retest in the next few weeks. It would be wiser to observe and wait for what $ALI and other property stocks might do next before jumping in. This stock is good for growth since the real estate industry in the Philippines is poised to grow in the following years. The demand from consumers globally is also continually growing. However, it’s best to wait for a consolidation, pullback, or a good entry near its support for a better risk-to-reward ratio.
Once again, KUDOS to @pediong for being this week’s featured trader! Enjoy your 14-day InvestaPrime Access and continue to be an inspiration to the trading community.
EASILY FIND THE FASTEST MOVERS IN THE MARKET
Our Market Signals will give you real time prompts on breakouts, breakdowns, and volume spikes that happen across markets in multiple timeframes.
The Foreign Exchange market, or forex market for short, is one of the biggest markets in the world. Every day, almost 7 TRILLION dollars worth of transactions are made. Even more than the total GDP of a majority of countries around the world. In the Forex market, currencies are the main asset that is being traded. Whenever banks, traders, or even tourists and citizens want to exchange their currency for another, they would have to transact in the forex market.
Globalization and the Forex market
Today, we live in an increasingly interconnected and globalized world with the advent of new technology. Businesses from all over the world are becoming more reliant on global supply chain. For example, businesses looking for cheap labor and manufacturing costs usually opt to have their products manufactured in China. For businesses looking for bleeding edge technology, Japan often offers the most advanced options. Of course, each country has its own unique offering. Likewise, each country also has its own currency which is why the forex market has become a prominent factor in the global business environment.
Technological advancements
As the forex market has become more prevalent in the business environment, technology has advanced further to accommodate the needs of different people. The most prominent technological advancement that boosted the use of the foreign exchange market was the development of more advanced platforms. As time has passed by, trading platforms have become more efficient, allowing for transactions to become more instantaneous. This has made forex trading more available and useful for a wider variety of cases. Forex transactions were clunkier and slower in the past, making it only feasible for a select handful of individuals and entities. Nowadays, everyone is capable of quickly changing their funds from one currency to another for even the simplest of transactions such as buying food deliveries for loved ones abroad. Automated currency exchange has also been integrated in different payment solutions. Debit and credit cards are now able to automatically convert one currency to the other, further making forex trades more seamless in everyday life.
The persons/entities involved in the Forex Market
Forex trading institutions – These are entities that focus on trading currencies. These traders are try to take trading positions in different currency pairs in order to make a profit for their firm
Multinationals – Multinationals involve entities or individuals that do business in different countries. They often deal with a lot of currency trades in order to handle their business operations.
Governments – The government has also become more and more involved in the forex market. As businesses become more and more affected by changing exchange rates, the government now also needs to monitor changes in the country’s currency value.
Average joes – Aside from traders and institutions, nearly everyone else is involved in the forex market. Every exchange of currency and every international purchase count as transactions in te forex market.
HOW CAN YOU TRADE FOREX
Find a platform to use
First, you have to pick a platform and make your own account. Although most platforms offer instantaneous trades, they often differ when it comes to user experience and spreads. User experience can be a big deal to traders especially if trades need to be made in a short amount of time. If there are too many steps needed just to make a simple trade, then the platform might not really fit you especially if you plan to take a lot of trades. Spreads should also be taken into account when picking a platform. Rather than charging commissions, forex brokers often implement a spread where they add a point or two to the price and take it as their profit. Once you make your account and fund it you should be all set to start making orders. For a quick overview of the market, you can head on over to our Multi-Market Tracker where you can track not just the forex market, but also the different stock markets and even crypto.
Develop a trading strategy
It’s fine to experiment for a trade or two when you start trading. However, as time progresses you need to start developing your own trading strategy. You need to find patterns in the market that suit you and learn how you can make profits from it. If you need resources to learn from, you can go to Investa University and browse our lessons for forex trading.
Become a continuous learner
As you develop your strategy and start to make profits, you have to remember that the market demands traders to become continuous learners. Especially in the forex markets, different strategies often become obsolete over some time. For example, breakout strategies worked well years ago. From time to time, they still work in the forex market. However, as time has passed by and everyone has caught on, bigger institutions and banks have started to abuse breakout traders. This has led to the most effective strategy in forex changing from breakout plays to trading the fakes. In short, always stay on your toes and look out for how patterns in the market change.
LIFETIME LEARNING on personal finance and investing?
Yes, you can have a lifetime access to our Exclusive InvestaFest Premium Recorded Videos PLUS a Limited Edition Investor Shirt when you collect raffle tickets to join the #InvestorDay this August 8!
Earn more tickets by accomplishing tasks on the prizes tab of the Investa app. More raffle tickets, more chances of winning!
Congratulations to @smljoju for being the featured trader of the week!
Sun Tzu once said that “Every battle is won or lost before it’s ever fought.” In the case of @smljoju, he believes that his trading plans curated with the help of Technical Analysis will help him win his battles.
@smljoju has been sharing his thoughts consistently in the Investa community. @smljoju has been a member of the Investagrams community since Dec 2019 and has been very active recently.
A couple of weeks ago, our featured trader posted his sequentialtechnical analysis on $NIKL, a hot stock in the local market. $NIKL is recently retesting at 6-ish area and were bound for a break of trendline or a plunge from the resistance area.
As the stock recently reached bottomed at 4.88-ish (52-wk low). @smljoju charted its support, volume, resistance, trendline, and RSI on the chart, bound for a breakout or retest in its trendline as he believes in its technical analysis. @smljoju felt an opportunity to have a good entry near the 52-wk low at 4.88ish area.
TECHNICALS OF THE TRADE
Technically, $NIKL bottomed at 4.88ish area in which it is the 52-wk low of $NIKL. Thus, the stock recently reached 6.01ish area and retesting at 6 area onwards. After breaking the resistance at the 5.65ish, NIKL volume surges along with its RSI. On the other hand, NIKL could retest in the next few weeks as the trendline will serve as resistance in the next few weeks. NIKL is showing strength in terms of volume as it continues to retest after trying to break out the trendline area. It came from a 52-wk low of 4.88ish before retesting and breaking the 5.65ish resistance. There could be a retest in the next few weeks in NIKL whether a breakout or breakdown or consolidation. Technically speaking, the next resistance of NIKL is the 6.15 onwards to break the trendline. Furthermore, NIKL will retest whether it will surge more or be back at the bearish side or will consolidate in the next few weeks.
@smljoju was confident that this stock would retest its support and resistance. He also charted that RRHI will go up as he indicated in his TA the supports, resistances,trendline, Volume, and the RSI. He charted a good entry near the support and possible resistance. He is also observing the movement of NIKL. Further to that, he is planning his trades carefully.
FUNDAMENTAL CATALYST
Nickel Asia is a mining company that focuses on the mining of nickel – owning and operating a total of 4 mines. As such, the stock is heavily affected by how nickel moves in the global market. After precious metals, including nickel, rallied in the commodities market, NIKL followed suit and broke out of its 20-day moving average. Furthermore, NIKL is considered to be part of the company that were bound for growth and revival of the economy. As this stock is focused on nickel mining (importing and exporting). It’s Earnings per shares (EPS) is around 0.53 as of 1Q 2022.
WHAT SHOULD BE MY NEXT MOVE
As the stock is consolidating and bound for a retest in the next few weeks, it would be wiser to observe and wait for what $NIKL might do next before jumping in. This stock is wise for growth pick since the mining industry could be a backbone to revive the economy as per the government of the Philippines. The demand from consumers globally is continually growing. However, it’s best to wait for a consolidation, pullback, or a good entry near its support for a better risk-to-reward ratio. It would also be advisable to trade lightly and in tranches given that we’re not yet out of the woods.
Once again, KUDOS to @smljoju for being this week’s featured trader! Enjoy your 14-day InvestaPrime Access and continue to be an inspiration to the trading community.
LIFETIME LEARNING on personal finance and investing?
Yes, you can have a lifetime access to our Exclusive InvestaFest Premium Recorded Videos PLUS a Limited Edition Investor Shirt when you collect raffle tickets to join the #InvestorDay this August 8!
Earn more tickets by accomplishing tasks on the prizes tab of the Investa app. More raffle tickets, more chances of winning!
The U.S. Federal Reserve, more commonly called the Fed, serves as the central bank of the United States. The Fed has the authority to manage monetary policy, regulate banks, and implement currency controls through market activities. However, with great power comes great responsibility. The Fed has the capability to stimulate the U.S. economy, but it also has to balance many factors to ensure the sustainability of the economy’s growth.
Federal Reserve System was founded on December 23, 1913, when President Woodrow Wilson signed the “Federal Reserve Act” into law. According to federalreserve.org, it performs five general functions to promote the effectiveness of its operations and the U.S. Economy.
Conduct the nation’s monetary policy – The Fed has to manage the country’s financial policies that unemployment rates are low in terms of data, while keeping inflation rates at modest and acceptable levels.
Promote the stability of the financial system – The Fed has to make sure that systematic risks is mitigated through active monitoring of the situation in the U.S. along with any global issues that may affect the economy.
Promote the safety and soundness of individual financial institutions – The Fed acts as the “lender of last resort.” It is in charge of dealing with any emergencies and also acts as the central entity that handles the loans of banks from a higher point of view.
Foster payment and settlement system safety and efficiency – The Fed is also responsible for ensuring that payment systems are swift and secure from any possible flaws or breaches in security.
Promote consumer protection and community development – Lastly, the Fed is also responsible for overseeing how consumer demand in the economy is moving. Since it is in charge of stimulating the economy when needed, the Fed needs to be aware of the economic developments happening in the country.
In the United States federal reserve system, the country is divided geographically into twelve districts. Each of these districts or banks are incorporated as a reserve bank. The twelve federal reserve districts operate independently but are supervised by the Federal Reserve system. The photo below shows the different districts:
(FederalReserve, Sep 2021)
The Fed is powerful enough to decide and control the distribution of money and credit. In addition, it also regulates the financial institutions and heavily influences the economy’s direction. The federal reserve enjoys a unique public/private partnership structure that functions within the government. In a way, the Federal Reserve is setup like private corporation to isolate itself from political pressures or political agendas by politicians.
Inflation
When the inflation rate is above average or is rapidly surging, the Fed will implement higher interest rates in order to combat inflation. Inflation is a burden to everyone as it devaluates the money someone has. For example, if 3 packs of gummy bears were worth $10 in the year 2000, 1 pack of gummy bears would already sum up to $10 today. The Fed solves the issue of prices rising too fast by raising interest rates in order to cut down demand and slow down the rise of prices
Effects of the Fed on the Economy
The Fed’s control on the monetary policy of the U.S. also affects the availability of money. If the Fed sets low interest rates, it would cause money to flow into the economy, favoring the public and promoting economic growth. A low interest rate environment lets companies borrow money for a cheaper rate. As credit becomes more available, small and large companies alike are able to embark on more ambitious projects that help stur the economy and promote employment.
However, we have to keep in mind that interest rates need to be set at the right level, where economic growth and inflation are balanced. Having interest rates that are too high for long would most likely cause economic recessions. On the other hand, interest rates that are too low for a long time would also cause the economy to overheat and inflation to rise aggressively. Borrowing from Ray Dalio’s analogy, central banks (therefore the Fed) act like the drivers of the economy. They have to press the gas just at the right level, where the economic vehicle is neither over speeding nor going too slow.
Effects of the Fed on the Stock Market
Since the Fed has a lot of power over the direction of the economy, it would make sense that it would also have an impact on the stock market. It is worth pointing out that turning points of the stock market are often affected by decisions of the Fed. The great Stanley Druckenmiller went as far as to say that the main thing investors and trader should look at when trading stocks is how central banks move. Liquidity remains as the number one factor that moves asset prices. As the Fed holds power over how much money circulates in the economy, they also hold the power to move the markets. Keep in mind, however, that balance still needs to be maintained. Pushing a lot of liquidity in the economy will do wonders for the stock market in the short-term, but will have severe consequences in the long run as inflation might go out of control.
Whether you’re a passive investor or a full-time trader, it will always be important to look out for how the Fed is steering the economy. Fed decisions often act as indicators for many financial institutions and hedge funds. Knowing how the economy might be affected by Fed decisions will help keep you a step ahead in predicting where the broad market will head towards.
Congratulations to @CharlesRN for being the featured trader of the week!
Sami Abusad once stated “Are you willing to lose money on a trade? If not, then don’t take it. You can only win if you’re not afraid to lose. And you can only do that if you truly accept the risks in front of you.” In the case of @CharlesRN, he believes that in the long-term value of his picks, and patience played a vital role for his trades.
@CharlesRN has been sharing his thoughts consistently in the Investa community. @CharlesRN has been a member of the Investagrams community since Sep 2017 and has been very active recently.
A couple of weeks ago, our featured trader posted his technical analysis on $RRHI, a hot stock in the local market. $RRHI recently broke its resistance at the 50-51 area.
As the stock recently reached a 52-wk low last June 24. @CharlesRN charted its support, volume, resistance, MA, and RSI on the chart, bound for a breakout in its trendline as he believes in its technical analysis. @CharlesRN felt an opportunity to have a good entry near the support and HOLD for a while.
TECHNICALS OF THE TRADE
Technically, the $RRHI broke its trendline at 50-51 area. Thus, the stock recently reached 57ish area and retesting at support in 53ish area. After breaking out at the 50-51 level, RRHI’s volume surges along with its RSI. On the other hand, others are falling and consolidating. RRHI is showing strength in terms of volume as it continues to retest after breaking out the trendline area. It came from a 52-wk low of 45.95ish before surging and breaking the 50-51 trendline area and resistance. There could be a retest in the next few weeks in RRHI for this stock to retest its resistance and support. Technically speaking next resistance of RRHI is the 58 levels onwards. Furthermore, RRHI will retest whether it will surge more or be back at the bearish side.
@CharlesRN was confident that this stock would retest its support and resistance. He also charted that RRHI will go up as he indicated in his TA the supports, resistances, MA, Volume, and the RSI. He charted a good entry near the support and possible resistance. He is also observing the movement of RRHI. Further to that, he is planning his trades carefully.
FUNDAMENTAL CATALYST
RRHI takes the spotlight in the local stock market, and recently broke its downtrend line at 50-51 area. Robinsons Retail Holdings Incorporated is a retailing company engaged in supermarkets, department stores, convenience stores, drug stores, appliances and electronics, beauty, mass merchandise, and e-commerce. RRHI are founded and led by the Gokongwei Group. A prominent family and billionaires engaged in almost all of the industries in the Philippines and Internationally. Furthermore, $RRHI has been a trend recently, and the volume from the locals and foreigners is increasing. In addition, $RRHI recently has a buy-back program. It is still unknown whether $RRHI will rise further or fall back down. Thus, it is best to observe $RRHI and plan a good entry. In addition, the Philippine Economy is expected to keep on growing moving forward as the Philippine Government has announced there will be no more lockdowns.
WHAT SHOULD BE MY NEXT MOVE
As the stock recently breakout from the 50-51ish area, it would be wiser to observe and wait for what $RRHI might do next before jumping in. This stock is wise for long-term holding since the services industry could be a top industry pick. The demand from consumers is continually growing. However, it’s best to wait for a consolidation, pullback, or a good entry near its support for a better risk-to-reward ratio. It would also be advisable to trade lightly and in tranches given that we’re not yet out of the woods.
Once again, KUDOS to @CharlesRN for being this week’s featured trader!
To show our appreciation, you will be given a 14-day InvestaPrime Access which will be granted to you by the end of the month and you will be advised by our Customer Service Team once it’s ready in your account. We hope this inspires you to continue to be an inspiration to the trading community!
The battle between the Fed and inflation has been making headlines almost every other week. Along with the ongoing fight against inflation, an ominous question has been coming up from time to time: is a US recession coming?
Various events have been indicating that the economy is getting worse. With inflation reaching historical highs, the stock market has seen the brunt end of things as investors are shying away from risky assets. Major US stock indices have already fallen by more than 20% and have yet to retake significant levels to indicate a bottom. Earnings reports have also shown declines and negative surprises.
To those unaware, a US recession will affect most of the financial markets around the world. Economic developments in the US will affect even the portfolios of traders and investors from other countries. Let’s deep dive into recessions and how they affect markets everywhere.
What is a recession?
In economics, a recession happens when an economy starts to experience a decline in overall production. Typically, a country is in a recession when the national GDP declines for two consecutive quarters. During recessions, you will commonly see businesses struggle and unemployment rates rising. Usually, a recession may last up to several months or years based on the situation and how the government handles economic issues. The cause usually differs from case to case as many factors affect how economies move. Most of the time, central banks are at the center of the efforts to mitigate and prevent recessions as they can control interest rate policies dictating how fast or slow an economy grows.
History of US recessions
To better understand recessions and their impact on the stock market, let’s look back into history and see how past recessions unfolded. Let’s start with the 1970s – a decade of instability brought by a mismanaged economy.
1973 US recession
In 1973, the US went into a 16-month-long recession brought about by inflation reaching double digits. The president during that time wanted cheap money to flow into the economy in the hopes of solving the unemployment problem. The Fed keep rates low during the build-up to the recession in the hopes that solving unemployment would eventually lead to lower inflation. However, this was not the case as the country’s GDP had negative growth for a long time and unemployment rose to almost 9%. The stock market fell by more than 50% and would not be able to recover for a long time. Even though the recession stopped sometime in 1975, the economy was still in shambles as inflation and unemployment continued to ravage the country.
Paul Volcker induced recessions in the 1980s
The next recession came in 1980, with another quickly following in 1981 until 1982 as Paul Volcker came in as the new Fed chairman. As they had a new mandate that focused on cracking down on inflation, interest rates rose to as high as 20%. GDP declined while unemployment reached double digits. Although recessions are usually bad for the market, this specific recession didn’t do much to hurt stocks as the fallout was shallow and would lead to a strong bull run.
1990 US recession
In 1990, the US economy faced another recession that lasted until 1991. This time it was caused by a savings and loans crisis wherein numerous institutions failed to handle the finances of many citizens. Coupled with Iraq invading Kuwait, commodity prices rose again globally leading to instability in correlated markets. Unemployment peaked at 6.8% while the stock market fell by roughly 20%.
Dot-com bubble
In the early 2000s, the US would face another recession. This time the US recession was brought by an overheating stock market as the dot com bubble burst. Many companies and startups failed, causing a lot of wealth to vanish from the whole economy. The recession took eight months. Companies during that time were overvalued and failed, causing the stock market to fall by 50%.
2008 Financial crisis
Just years afterward, the US economy would face yet another recession brought by troubles from the financial system. The housing market crisis lasted from December 2007 to June 2009, triggered by various shady loan defaulting and the widespread use of derivatives. The stock market would then fall by 50% again, while unemployment reached 10% throughout the recession.
Covid-19 pandemic recession
A couple of years ago, the US technically faced another recession as the pandemic caused the economy to decline by 5.1% and 31.2% simultaneously. With Covid hampering businesses everywhere, unemployment rose to a whopping 14.7%, but the market only crashed for two months before reaching all-time highs. This recession was the shortest recorded as it would only last one quarter.
How US recessions affect global markets
Let’s make one thing clear: the biggest mover of assets is LIQUIDITY. No matter what happens, assets will only increase in price if there is demand and money follows. A great story or situation will only translate to higher prices if people buy into it. It’s undeniable that the US stock market is the largest in the world. The majority of funds, and therefore liquidity, are centered around the US financial markets. Should any pain be felt there, the negative sentiment will spill over to other risky assets. With the advent of electronic trading and faster transactions, the correlation between different markets has grown stronger
A prime example of this was the 2008 US recession brought about by the housing market bubble. Liquidity was sapped away from stock markets everywhere. European markets like the FTSE weren’t safe as stocks fell by almost 50%.
The Philippine stock market was in a prime position for growth. Many companies and even big names were poised for major rallies. However, the US recession caused investors everywhere to shy away from stocks, stunting the local market’s growth and causing share prices to fall sharply.
Going back to the present
Inflation is once again reaching historical highs after going all the way up to 9.1%. Even as the Fed aggressively hikes rates, inflation continues to climb. Wages have grown, but purchasing power is still being eaten up by absurdly high inflation. Stocks have fallen by as much as 20% from their recent highs. The only bright spot now is that oil in the global markets has started to cool down and drop from its highs, while stocks have also started to rally a little bit – but have yet to retake major levels.
The best comparison we could make right now is relating the great inflation of the 1970s to today’s situation. As with the situation back then, it could be safe to assume that a sense of control needs to be established in the US economy before we can see the markets start to shine bright again. Keep looking out for whatever developments happen moving forward as we could be at a major turning point for the markets.
Congratulations to @rometroy for being the featured trader of the week! Warren Buffet once said “Invest in companies you believe in.” In the case of @rometroy, he believes that his stock picks are not for short-term trading but a long-term HOLDING that will be profitable in the long run.
@rometroy has been sharing his thoughts to the Investa community ever since 2015! He’s also a popular trader in the community as he has over 4000 followers.
A week ago, our featured trader posted his analysis on $SSP, a hot stock in the local market. $SSP recently reached a 52-wk high at 1.56 and closed at 1.5 on July 20, 2022!
As the stock recently surged through a reversal trend, @rometroy charted its support, resistance, MA, EMA, and RSI on the chart, bound for a breakout as he believes in its fundamentals. @rometroy felt an opportunity to have a good entry near the support and HOLD for a while.
TECHNICALS OF THE TRADE
Technically, the $SSP reached a 52-wk high recently at 1.56 and is bound for consolidation or breakdown. After breaking out at the 1.18 level, SSP’s volume surges along with its RSI. The MA crosses the long-term length of 200. On the other hand, others are falling and consolidating. SSP is showing strength in terms of volume as it continues to consolidate after breaking out at 1.18ish. It came from a 52-wk low at the 0.92 area before surging and breaking the 1.18ish area. There could be a retest in the next few weeks in SSP. Technically speaking next resistance of SSP could face is the 1.6 level onwards. Furthermore, SSP will retest whether it will surge more or will be back being more bearish.
@rometroy was confident that prices would go up as he indicated in his chart the supports, resistances, MA, EMA, and the RSI. He charted a good entry near the support and possible resistance. He will also hold the SSP for awhile while planning for a take-profit price and his trades.
FUNDAMENTAL CATALYST
SSP takes the spotlight in the local stock market, reaching a 52-wk high of 1.56 and closing at 1.5 on July 20, 2022! SFA Semicon Philippines Corporation is a semiconductor company that supplies Samsung Korea. SSPs are engaged in the assembly and test of memory chips and devices for computers, laptops, and servers, as well as micro SD cards for mobile phones.
Furthermore, $SSP has been a trend recently, and the volume from the locals and foreigners is increasing. In addition, $SSP recently has a buy-back program which could be an indicator for a BUY SIGNAL. It is still unknown whether $SSP will push further or be back on track on the bearish side. Thus, it is best to observe $SSP and plan a good entry. In addition to that, semiconductors are facing higher demand. Thus, in terms of global, semiconductor chips are having shortages. Further to that, it is best to consider the market sentiment. In addition, consider the technical indicators and the financial statements as they are vital parts of the stock.
WHAT SHOULD BE MY NEXT MOVE
As the stock recently breakout from the 1.18ish area, it would be wiser to observe and wait for what $SSP might do next before riding in. In addition, this stock is wise for long-term holding since semiconductor stocks are increasing yearly. The demand from consumers is continuously surging in terms of data. However, it is still unsure whether $SSP will continue to go up, so it’s best to wait for a consolidation, pullback, or a good entry near its support for a better risk-to-reward trade. In addition, it is best to have alternative stock picks that are more profitable and good to trade alternatives like bottom picking stocks or stocks that could surge due to global demand or sectors that could be more profitable. Furthermore, it would be advisable to trade lightly and in tranches.
Once again, KUDOS to @rometroy for being this week’s featured trader! Enjoy your 14-day InvestaPrime Access and continue to be an inspiration to the trading community.
