New York Stock Exchange’ stocks rising went beyond those falling by 2,049 at one point on Monday, the NYSE Tick Index is on a record high. It is the highest reading ever.
Stocks had dropped 34 percent in 33 days and they have recovered half of it back in 3 weeks. Experts are saying that the calmness of the market will not last though one can be thankful it didn’t keep on dropping further. There are clues that experts are seeing across options markets. They are saying that surged share volume and widening daily price swings are proof enough that the market will change colors soon. Click here to know more about the stock markets.
Investors are not settled at all as there has been frantic positioning and extreme readings in market internals. The volatility of the market is picking pace compared to what experts saw couple of months ago. This time the pace will be higher they are stating. Market is readying itself for a real tug of war between expectations and policy makers.
On Tuesday, the S&P 500 sank 1.1 per cent. It reached lower after certain reports didn’t agree with the ‘Virus vaccine shows positive results’. The prospects to tackle the pandemic are increasing affecting the market and same was visible on Monday when it sparked a 3.2 per cent rally.
According to research, the tiny options traders positioned themselves to bet on a rally, buying bullish calls and selling bearish puts at a record pace. They are ought to act bullish say experts. The experts say that when they look at these group of traders who tend to be wrong at emotional extremes they start worrying because their market behavior is a warning signal.
Kamalpreet Singh
Working as a freelance contributor for several news platforms over the years, Kamalpreet has a well-thriving interest in the education sector. Kamalpreet heads at the post of editor at BO Herald and he contributes his knowledge and expertise in reporting Education News.
