Global stock indexes have caught a very volatile economic environment over the last two years, with an equally volatile market for long-term investors and short term traders as well, since then in early 2021 with the biggest deal dispute in years between the United States and China. But the big ink has not been dry on this first stage one trade deal between the two nations when suddenly the global economy changed dramatically with… Donald Trump.
In order to understand this sudden and almost unprecedented move, one must look beyond the surface. It’s all about the trading account that allowed this story to unfold. The fact is that the Chinese government allowed their local brokerage firms to participate in the New York Stock Exchange (NYSE) over the last six months. This was surprising not only because of China’s economy, which many critics believe is in a tailspin but also because most importantly this was viewed as a direct counter measure against the Chinese stock markets. So, what does all of this mean for global stock indexes?
The first thing is that this has created more open trading hours across the globe, and more foreign institutional investors have now become interested in the New York Stock Exchange (NYSE) and the New York Mercantile Exchange (NYSEM). The second thing is that this has created a new set of trading rules and regulations for the New York Stock Exchange and the New York Mercantile Exchange. This is how we find that while some investors were pulling out of the stock markets because they were concerned about the slowing economy, new institutional investors such as hedge funds, bankers and financial lenders have all shown an interest in increasing their stake in the stock market. This means that investors such as you and I will now be able to trade in our favorite global stock indexes without having to worry about any governmental intervention from the United States government. If you’ve been losing money in the stock market recently you’ll definitely want to consider taking advantage of this trend and jumping on board of one or more of these funds today!
Some of the more popular funds include the $4.5 Billion Blue chip stocks fund, which has a very high success rate of earning returns of roughly 28%. This is not only the highest earning fund among the top New York Stock Exchange stock indexes, it is also one of the most actively managed by professional traders. So aside from the large returns, what sets these stock indexes apart from other types of index trading is the fact that there is very little in the way of trader risk.
Now suppose you wanted to take a look at how well the Chinese government’s plan to counter the downward economic pressures was working. You would probably look for some sort of indicator to help you make sense of the data and one of the simplest and yet most useful indicators out there right now is the replacement chart. This is particularly useful for traders who are looking to place wagers on short term market movements. If you can understand the way retracement works you will know when to invest and when to get out, but it is still important to keep in mind that there are a number of factors that can affect market behavior and the behavior of the Chinese government is just one of them.
Another good index to closely follow is the Commodity futures trading index or CFDs. The CFDs or contract for difference markets provide the option to trade commodities in very small amounts as opposed to traditional stock trading indices. If you’ve done any research on price movements within the futures markets, you will realize that CFDs are essentially price predictions based on economic data. These are some of the best low risk trading options available for those seeking index trading signals.
As stated before, the Chinese government has issued a series of statements attempting to rectify problems in its economy. It must be expected that after the initial euphoria wears off this confidence will weaken and the PBOC will probably attempt to bring its interest rates lower in order to encourage economic growth in China and the Shanghai composite. In fact this move could trigger another retracement rally as bears take hold. If you can spot when this happens you can capitalize and make some nice profits. Of course, you will also want to take a close look at the other elements of the global stock indexes including oil and copper, which also have strong retracement patterns.
The fact is that there is no single indicator that can predict when the next big move is going to occur. Instead it is up to you to study the fundamentals of the global stock indexes and make your own judgments on when to get in and when to get out. If you can do this correctly, you stand a very good chance of making some nice money in both bear markets and bull markets.