What’s the market outlook this week? What are the most critical events and attractive assets to trade? Look at these Assets To Trade This Week, December 19-23, 2022.
The fear of recession is growing. However, margin traders may also be able to take advantage of the market volatility, It often accompanies a recession by actively trading and taking advantage of price fluctuations.
The potential benefits or drawbacks of margin trading during a recession depend on various factors. For example, it includes the trader’s ability to accurately anticipate market movements and the level of risk they are willing to take on.
Let’s look at the best 3 assets to trade this week: December 19-23, 2022:
US Indices & Commodities
- The S&P 500 lost 2.1%, and the Nasdaq shrank 2.7%.
- The Dow dropped 1.7% last week due to the Federal Reserve’s most recent interest rate increase and weak retail sales figures, which led to a significant selloff.
- The benchmark price for the United States, WTI oil, ended the week at $74 per barrel, down from around $78 on Wednesday.
- Brent Crude Oil (UKOIL) made a run at the start of last week but then lost most of the gains on Thursday and Friday, going back below $80 per barrel early Monday morning.
- Bitcoin fell below $17k again, and ETHUSD was established under the $1,200 benchmark.
Since October, Nike has seen a notable rise in its stock price, reaching $116 on December 13. However, it has since been subject to a sharp decline, losing 8.8% of its value in just four trading days.
With the release of its fiscal second-quarter financial results on Tuesday, December 20, investors can purchase a put option on the significant sportswear player if they believe Nike could underperform.
This comes after the company and other retailers experienced issues with their supply chains, resulting in excess inventory and a shift away from clothing purchases.
2) S&P 500
Friday’s trading session saw the S&P 500 slightly decline, likely due to slipping below the 50-day EMA and the fact that it is a significant options expiry day. These signals mean that the market may continue to decline, but it remains to be seen if it can turn around.
The most significant data point of the coming week is the Fed’s consumption expenditures (PCE) price index. It is anticipated to gain 0.1% monthly in November, somewhat less than the 0.3% increase in October. Core PCE, excluding food and energy components, is expected to remain at 4.7% over the year. It is slightly down from the 5% increase in the previous month.
Despite considerable macroeconomic difficulties, Volkswagen produced a solid Q3 2022 that investors should pay attention to. Investor opinion has been underestimating the long-term potential of the automaker’s EV plan, ignoring the significant battery electric vehicle (BEV) deliveries. Though the price dropped to 132.78 euros per share on Thursday, December 15, investors should remember that most economic challenges are likely transient.
Many investors are eyeing Volkswagen stock this week due to its one-year forward price-to-earnings ratio of x3. Given the company’s fundamentals and prospects, it is too good to pass up. While some are looking to buy low, short sellers are also active. Thus, traders should be prepared for an exciting period of price action.
Invest With SimpleFX!
These are just hundreds of attractive assets to trade with SimpleFX in December. Now is a great time to consider trading cryptocurrency on global markets. Diversifying your portfolio with international investments could be smart with the increased adoption of digital assets and the potential for solid returns.