While online stock trading is now the pervading trend, one thing that hasn’t quite changed from conventional trading is the requirement to think beyond general perception of the stock market.
Going against the grain and sticking your neck out with an opinion that is contrary to the general view requires a good deal of courage, but it’s sometimes needed to succeed in stock trading. The perfect example of it is the bullish performance of the US stocks this year in spite of nearly universal bearish outlook following their dismal performance during winter. During the gloomy winter, even bullish market analysts began suspecting the end of the good period that began around seven years back.
There was one analyst though who stuck to his bullish perspective and called for the S&P 500 Index to hit 2,350 back in late January when it just about managed to surpass 1,900 – Craig Johnson of Piper Jaffray.
Back in 2012 Johnson called for a long-term bull market. Early this year he claimed 1,820 to be a great support level, in the region of the 2014-2015 lows. On February 11, two weeks later, the S&P 500 reached 1,810 in the course of trading and closed at somewhere around 1,829. That was the beginning of a great rally that managed to push the S&P 500 through around 2,135, its all-time high of May 2015, before closing at 2,175.03 on the 22nd of July, 2016, and setting a record in the process. This was a 20% move that catapulted the index from its lows and astounded the bears, some of who whom were bulls before.
Johnson considered the level of 1,820 to be quite a solid support level for the market overall. Had it broken, it would have resulted in lower lows. And now Johnson believes we have made it through, though it turned out to be a close call. The highs are getting higher to the point of all-time highs. But that’s not all. Johnson believes 2,135, the earlier all-time high, to be the new support level for the market from which stocks could make a continuous move upwards in the coming months.
This insight could help traders make better decisions and secure the edge to see success and opportunity where things appeared bleak for others. But online trading requires something more than that for success – a smooth and efficient trading platform plus direct market access, both of which are offered by TradeZero. Call us at +1 954-944-3885 to know more, or email firstname.lastname@example.org.
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