Why are the stock markets going down and how to make money these days?

Increase risk aversion at a time when interest rates are rising and may continue to do so.

At 8.11pm on the trading day on 23 September we read the following prices:

Dax Future

12,284

Eurostoxx Future

3,336

Ftse Mib Future

20,940

S&P 500 Index

3,662.44.

Why are the stock markets going down? The mix is ​​as follows: rising inflation and possible recession, war in Ukraine taking a bad turn that could lead to a nuclear conflict. Fly to quality towards bonds which are starting to be convenient and less risky.

What could happen on the markets in the coming months?

In red, the forecast on the world stock index on a weekly scale for 2022.

In blue, what happened until 23 September.

The current decline is linked to the date of August 16, annual setup deadline. Now the next date will expire on October 17th. The annual fractal, well correlated to the forecast until August 16, now continues to deviate from the real trend in prices.

What to wait for next week of the stock markets?

The expected trend is as follows: weekly maximum between Monday and Tuesday and then new descent for the whole week. A rebound attempt is possible between Wednesday and Thursday.

How to invest in the coming days?

Dax Future

Very short bearish trend until we see a daily close above 12.964. Only lasting upside with next week’s close above 12,644.

Eurostoxx Future

Very short bearish trend until we see a daily close above 3.448. Lasting upside only with next week’s close above 3,534.

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Ftse Mib Future

Very short bearish trend until we see a daily close above 21.780. Only lasting upside with next week’s close above 22,280.

S&P 500 Index

Very short bearish trend until we see a daily close above 3.794. Lasting highs only with this weekly close above 3.901.

Bags: what to do now?

The odds are still bearish.

What the stock exchanges could do on Monday after the opening

An opening with an attempt to rebound is expected to then leave room for new sales. Instead, a closure in green should be carefully evaluated.

Why are the stock markets going down and how to make money these days?

How to recover the money lost with trading?

If the losses are in equities, the logic dictates that you should trigger stop losses when you exceed the maximum acceptable risk according to your risk profile. Why should losing shares not be brokered but sold? History teaches that investing in stocks is more risky than doing it on the world stock index by means of mutual funds and similar financial instruments.

How to make money right now? The downside could be used to open long-term positions (7/10 years) on the world stock index in installments.

Recommended reading

How is the American stock market going and where is it headed

The results of the forecasts in this article are based on statistical calculations explained in the ebooks published by ProiezionidiBorsa and processed on the basis of the available price history. (We also remind you to carefully read the warnings regarding this article and the author’s responsibilities, which can be consulted HERE”)

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