Strategists Suggest Strategy to Deal with Coronavirus Threat

1. Strategists Suggest Strategists Suggest Strategy to Deal with Strategy to Deal with Coronavirus Coronavirus Threat Threat The coronavirus epidemic seems to be spreading fast, with governments issuing warnings. So what happens to your carefully planned trading strategy? TradeZero Ocean Place Cable Beach, Unit #1 Nassau, Bahamas

2. Unforeseen events could cause you to transform your trading strategies. That’s what makes the stock market challenging. While online stock brokers offer many tools to help you trade efficiently, you still need the opinions of experienced strategists to deal with unexpected situations that threaten to alter markets. Sometimes you never know how much longer the unexpected situation would be a factor. Buying the Dips and Dumping as Equities Rebound With the WHO declaring a coronavirus public health emergency, MarketWatch analyst Mark DeCambre reports Bank of America analysts suggesting buying the dips of the stock market, and then dumping the equities while they rebound. Bank of America Securities strategists consider this the strategy to adopt. The coronavirus outbreak is providing a pause temporarily in the record rally we’ve been witnessing. As per the strategists, investors have almost hit a wall in investing, in a situation where the market has unceasingly risen towards record levels. However, they do reckon that pullbacks such as the one recently experienced could provide the chance for opportunistic buying. Purchasing Sharp Pullbacks But Bank of America strategists say that the smarter option would be purchasing the sharp pullbacks before selling when the markets rise higher later. The strategists reckon a drawdown of 3% helps clear some of the positioning. That explains why you need to buy the dip. With the tech sector being the most overbought one since the dot-com bubble came about, it justifies selling the rip. Looking at what happened in the market on Thursday, DeCambre observes that investors are actually putting those strategies to the test. The Dow Jones Industrial Average (DJIA) was down by almost 90 points. At 28,631, it was off 0.3%, when checked last, despite nearly turning www.tradezero.co +1.954.944.3885

3. positive in the session a bit earlier. The S&P 500 was off 0.5% or 14 points, all the way to 3,258. The Nasdaq Composite (COMP) was down 0.5% or 41 points to 9.234. The Dow and S&P 500 are currently in line for a loss of more than 1%. The Nasdaq is heading for a 1.2% drop as a result of the growing Novel Coronavirus outbreak in China causing many fatalities and being detected in other countries too. This Investor Is Not for Buying the Dip Another investor warns against buying the dip, stating that a severe bear market is round the corner. He reckons that the Coronavirus epidemic could cause the market to tip to the other side of the expansion it is currently enjoying. The present stock bubble is in a highly inflated state, reckons the investor. These opinions may seem confusing because of their seemingly contrasting points of view. But deep research into data and a look at the past can give you the conviction you need to make the right decision for your trading strategy and goals. Helping you along the way would be an experienced direct market access broker to facilitate more efficient trading online. www.tradezero.co +1.954.944.3885