As the year begins, there is a lot of speculation about what will happen with the stock market. We have been through challenging times with the coronavirus pandemic, economic disarray, and more. Despite this, Wall Street strategists see stocks gaining 9% in 2021, according to CNBC News.
Experts can only speculate about this rise in stocks, but investors remain optimistic for this year’s markets. They survived a difficult year, and improvements are on the horizon.
The put-call volume ratio, which according to Investopedia, is“an indicator ratio that provides information about relative trading volumes of an underlying security’s put options to its call options. The put-call ratio has long been viewed as an indicator of investor sentiment in the markets. Technical traders use the put-call ratio as an indicator of performance and as a barometer of overall market sentiment.”
This ratio has been below 0.6 nearly every day since November 20th–the longest stretch in at least eight years–a positive indicator for the upcoming year.
Whenever you are looking for expectations or speculations in the market, you must consider the social and economic backgrounds. For instance, tech companies dominated the pandemic’s bull market in 2020, but why? COVID-19 has us all at home. We need technology to work, study, and fill the free time. 2021 comes with a different situation in tow. The virus is still present, but health and tech companies are working together to distribute the COVID-19 vaccine worldwide.
If you are looking to invest this year, listen to the market. Take time to analyze. Market leadership will reveal itself as high-quality stocks break out of bases. According to investors.com, “Amazon (AMZN), Fortinet (FTNT), Veeva Systems (VEEV), Datadog (DDOG), and Inari Medical (NARI) are growth leaders forming early-stage bases.”
2021 will present industries with growth opportunities and new strategies. Economic recovery is on the way for many sectors, and stocks should extend their newfound leadership.
Experts can make predictions about the market because they have studied it for years, so if you are new to this game, we highly recommend finding a veteran who will be your guide. There are many places to learn and be informed about the weekly trading signals. Our favorite expert site, full of resources and advice, is The Oracle on Wilshire.
Their weekly newsletter summarizes general market activity and gives you specific signals for buying and selling stocks, futures, and funds. What we love most is that you can find real-time recommendations for Strictly Technical Short Term Stock Trades, available on a subscription basis.
If you have any doubt about stocks, you can trust Oracle on Wilshire, where Benjamin Blakeman will be your guide. For years, he has been trading profitably and decided to start the weekly Oracle on Wilshire newsletter in 2016 to help his friends and colleagues benefit from his extensive market insight and experience.