Top 4 Trading Assets To Watch This Week – Monday, May 22
The Dow Jones Industrial Average (DJI) is currently trading at 20,698.28. For the week ending Friday, 19 May 2017, the Dow Jones turned things around after a disastrous mid-week plunge. By Friday, the 30-member index was resurgent with 26 stocks up and 4 stocks down. The top five stocks include Caterpillar, General Electric, the Boeing Company, Walmart stores and United Technologies Corporation. Financial services corporations like Visa and JPMorgan Chase & Company were also among the top 10 performers. Among the worst performing stocks were the Goldman Sachs Group Inc., Johnson & Johnson, Microsoft Corporation, and Cisco Systems Inc.
At the heart of the volatility in equities markets is the trouble at the White House. Trump has been embroiled in one scandal after another, and his unfiltered commentary has set the proverbial cat among the pigeons. By Wednesday, 17 May, global financial markets plunged 1.8%. Fortunately, the fundamentals of the US economy remain sound and concerns about the US president’s unhinged behavior played second fiddle to what many believe are value-driven stocks. The S&P 500 index, the Dow Jones Industrial Average and the Nasdaq composite index have rallied accordingly. Binary options traders have enjoyed tremendous benefit from the volatility, buying put options as investors backed away, and call options as speculators dived back in.
Trading Opportunity #1 – Dow Jones Industrial Average Resurgent
The Dow Jones Industrial Average has turned the corner after a midweek mishap that sent traders into a selling frenzy. For the week ending Friday, 19 May 2017, the Dow Jones rallied with 26 members up and 4 members down. The momentum is likely to hold in the week ahead, and the rising confidence we are seeing has pushed the index above its 200-day moving average of 19570.68 and its 50-day moving average of 20,775.71. Simply put, binary options traders are seeing positive momentum driving the Dow as value investors pile into the markets. The problem with buying dips is that market prices tend to keep rising despite greater macroeconomic threats that loom in the distance. The Dow has been on a relentless surge for several years, but a caveat is in order, a recession or a market correction is inevitable. Short-term, call options are the safe bet for binary options traders.