With this session, a very positive week ends on the equity markets, especially for European ones. It was an octave in which the differences between the financial world and the real world emerged as never before. The Analysts of ProiezionidiBorsa have highlighted some salient points, useful for understanding what is happening on the financial markets.
The unknowns of the present weigh on hopes for a near future without a pandemic
While in half of Europe more and more restrictive blocks were being placed due to the rampant pandemic, the stock exchanges were running. Yet they went down all summer, just at the moment when the pandemic was giving respite.
This demonstrates that the markets follow a logic that is not the common one. So it becomes very difficult to try to anticipate them, especially in moments of uncertainty like these. The best strategy is to follow the prices and adapt to the trend.
Piazza Affari has finished a good week thanks to the news of the discovery of a 90% effective vaccine. In the last 10 sessions, the market has recovered all the ground lost from July to early October.
If we want to find similarities, this octave is very similar to that of the week of July 20. Both for amplitude and for very close maximum and minimum levels.
On the stock market it was a brilliant week but with these unknowns
The week of July 20 marked the summer high of prices for the Ftse Mib index (INDEX:FTSEMIB). When everyone expected a further rise in Piazza Affari, the trend turned to the downside and started to decline until the end of October.
Is there to be pessimistic? That week had started on the upside and ended with prices at octave lows. The one that has just closed, however, did the opposite. The week opened lower and ended on octave highs.
There is no need to be pessimistic for next week, even if, perhaps, one cannot be very optimistic. Today’s session was yet another with minimal variation. Prices have not gone down, but neither have they gone up. What does it mean? That the operators have not yet taken a clear position.
Surely on the stock market it was a brilliant week but with these unknowns, so we just have to wait for the next developments.
Deepening
This the multidays analysis and the analysis of international markets by the ProiezionidiBorsa Research Department.
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