Forex trading the Dow Jones and the S&P 500, Goldman Sachs higher - Apple lower [Video]
|You may have heard about the simple “Buy the Dip” Strategy in stock trading.
Unlike trading forex pairs, which can go either way on your price action charts, stocks and indices are encouraged by investors to go up.
So, buying the dip is a real strategy for some investors.
On the Dow Jones Industrial Average and the S&P, price action fell to intersect the lower trend line, investors bought the dip and prices rose.
However, the NASDAQ seems to be in a downtrend compared to the other US Indices. Why?
Well, your homework is to look at the component companies of these indices.
Many of these indices have the same companies listed but the NASDAQ does not include banks.
So we see, for example, shares in Goldman Sachs and Bank of America rising dramatically and having a positive influence on the S&P 500 and the DJIA.
This, of course, does not have an effect on the NASDAQ but the fall in shares of Apple and other tech companies does.
So, keep an eye on the NASDAQ to see if we get a bounce of the lower trend line.
We are seeing a steady rise in the price of WTI crude oil but price action is forming a rising wedge which is often a bearish sign.
We are not getting much help from our technical indicators so we will keep an eye on this.
That’s all for now.
CFDs and FX are leveraged products and your capital may be at risk.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.