Account

New to ADSS? Open an
account now to get started.

OR

Already have an account?

Add funds to your ADSS account

Account

New to ADSS? Open an
account now to get started.

Add funds to your ADSS account

Trends & Analysis
News

Crude oil dips for 3rd session after supply data

News

Is there an AI upside for AMD?

News

GBP/USD recovers following wage report

News

Buy the JPMorgan dip?

News

Goldman Sachs shares surge after earnings beat

News

Keep an eye on these key S&P 500 levels

Trends & Analysis
News

Crude oil dips for 3rd session after supply data

News

Is there an AI upside for AMD?

News

GBP/USD recovers following wage report

News

Buy the JPMorgan dip?

News

Goldman Sachs shares surge after earnings beat

News

Keep an eye on these key S&P 500 levels

Asset Watch

Who wins the S&P 500’s bank battle?

Thursday, February 29, 2024

It’s been an epic risk rally over the last few months, as the S&P 500 has left the doubters in the dust. Goldman Sachs strategists told clients on Feb. 26 that “extremely” concentrated positioning in the AI beneficiaries lays the foundation for a catch-up trade by the underperformers.
There is “space for bullish sentiment and positioning to be further supported, especially if we start seeing a more meaningful rotation out of cash and into risky assets and laggards within equities,” they wrote.
Yet, JPMorgan strategists countered that “We see upside risks to inflation given loose financial conditions, tight labour markets, high government spending, and geopolitics… The narrative could turn from goldilocks toward 1970s-style stagflation… [with] significant implications for asset allocation.”

While only one investment bank will emerge victorious, monitoring a couple of key levels can help you stay invested and still manage risk. For example, the S&P 500’s 20 and 50-week moving averages have been reliable support and resistance levels for the last few years. The former lies near 4,700 while the latter is near 4,470.

In 2021, the 20-week MA (the white line) largely held as the index soared to an all-time high. If it remains above the milestone, the outlook is bullish, and minor pullbacks are healthy corrections. If not, the index must hold the 50-week MA (the blue line) to avoid re-enacting the carnage witnessed throughout 2022.

So, do the bulls deserve the benefit of the doubt, or is caution warranted in the weeks ahead?


Site by Pink Green
© ADSS 2024


Investing in CFDs involves a high degree of risk that you will lose your money due to the use of leverage, particularly in fast moving markets, where a relatively small movement in the price can lead to a proportionately larger movement in the value of your investment. This can result in loses that exceed the funds in your account. You should consider whether you understand how CFDs work and you should seek independent advice if necessary.

ADS Securities LLC (“ADSS”) is authorised and regulated by the Securities and Commodities Authority (“SCA”) in the United Arab Emirates as a trading broker for Over the Counter (“OTC”) Derivatives contracts and foreign exchange spot markets. ADSS is a limited liability company incorporated under United Arab Emirates law. The company is registered with the Department of Economic Development of Abu Dhabi (No. 1190047) and has its principal place of business at 8th Floor, CI Tower, Corniche Road, P.O. Box 93894, Abu Dhabi, United Arab Emirates.

The information presented is not directed at residents of any particular country outside the United Arab Emirates and is not intended for distribution to, or use by, any person in any country where the distribution or use is contrary to local law or regulation.

ADSS is an execution only service provider and does not provide advice. ADSS may publish general market commentary from time to time. Where it does, the material published does not constitute advice, or a solicitation, or a recommendation to a transaction in any financial instrument. ADSS accepts no responsibility for any use of the content presented and any consequences of that use. No representation or warranty is given as to the completeness of this information. Anyone acting on the information provided does so at their own risk.