Earnings announcements from listed companies will continue apace this week but we can expect volatility to spike as central banks join the party, writes Ian Murphy of MurphyTrading.com.
On Wednesday, there will be another interest rate decision and press conference by the Fed, while the Bank of England announces their rates on Thursday, and to round out the week we get US Nonfarm Payrolls on Friday. Last week’s bounce in US equities caught more than one market participant by surprise, and the feeling ‘on the street’ is that we are in the midst of one last hurrah before the selloff in stocks intensifies. That narrative makes sense because the pain of rising interest rates across the globe has yet to have an impact, but that shouldn’t influence how we interact with the market. If our trading signals keep coming, we should keep trading and let someone else worry about market timing.
As traders and investors, we should be prepared for any eventuality, and to catch a new market cycle after a bottom has been established, and that bottom is not far off.
Learn more about Ian Murphy at MurphyTrading.com.