At the beginning of 2020, no one knew what was going to happen to the stock market based on the new Corona virus that was taking over China. Some people got very lucky in the beginning of January and sold or shorted their positions in the markets. Due to the pandemic of the COVID 19 virus, it was one of the biggest buying opportunities of a lifetime.
If you were able to purchase or start purchasing stocks and options in the middle of March, you had the right mindset of what was to come. As the pandemic was getting worse across the world, the stock market started to gravitate to the north side. We saw the market go up and up and up some more. It was almost like a legendary story being told live. No one could believe that the stock market was going up with everything that was going on.
Fast forward to 2021. Here we are looking at all-time highs in the stock market. We’ve seen small, medium and large companies reaching all-time highs for over the last 10 months. What is next? Where will the market go from this point forward?
We have so many questions that are being asked each and every day and no one really knows the answers. Based on market speculation there is no reason for the market to stop going up. When there’s still money on the sidelines you have to imagine that these people will have to put it to work. If they don’t put it to work they’re going to earn very little on their money with interest rates so low.
We follow the SPY relatively closely. This is a market indicator of where the market is right now. As of last week we were hitting all-time highs on market. We do still have thousands and thousands of cases of this COVID coming out each day. With so much more information than we had a year ago, it makes sense that the market will continue to the upside. No one knew what was going to be of this virus. Should this pandemic continue, the market will still continue to rise if there is money out there.
There are tons of people trading the markets every day. Each person has their own idea of which direction the market will go. It’s now up to you to figure out where you think the market will go. You can also find the hot sectors to trade based on what is happening that week.
We’ve seen stocks that were considered worthless making 52 week, if not all-time highs in the markets. It almost makes no sense, but the only thing you can do is ride the wave until it all ends. There is no reason to step away while the markets are going up just because you think they should be selling off. Markets don’t act that way. If there’s money on the sideline ready to be invested that means that there is plenty of demand still. If market shares are all bought up then we definitely topped out.
Keep this information in mind when you’re deciding to take a long or short trade. Find the right sector and don’t force anything if you think the market should shift gears. No matter which direction you think will go, we will most likely see volatility in both directions.
If you are planning to trade stocks, FOREX, binary options, or any other methods, be sure to know the risk of all of these when you put on your trade. Good luck, and always protect your capital no matter what.