5 March, 2021 (8:29 am IST)
4 March, 2021 (9:59 pm EST)
World stock markets continue to witness a heavy sell-off in stocks as US bond yields continue to rise.
The 10-2 Yield Spread, a standard barometer of bond yields’ is more than 5% up.
That is why US stock markets traded and closed negative in their overnight session. The tech index Nasdaq has been suffering bigger losses and has turned negative for year 2021.
It seems only one stock; GameStop, continues to attract buyers and has been steadily climbing up after some extreme volatile trading. The stock ($GME) closed more than 6% up in its overnight session.
Today in Asia session, all stock markets are trading in red. All major Asian stock markets are down. SGX Nifty is 85 points lower, indicating another gap down opening for Indian stock markets.
US and European stock futures are negative, putting more pressure on global stocks.
How To Day Trade:
- World stock markets are following the negative trend in US stock futures.
- The trend in these entities is down but highly volatile, going up and down and sometime turning green and then collapsing again.
- Therefore, day traders should trade cautiously and must keep stop loss in all their open trades.
- Successful day trading requires not only skilled trading techniques but also effective money management.
- Since the trend is down, for day trading the best strategy would be to sell near resistance levels.
- These could be major or minor resistance levels.
- Use Moving Averages (9-days, 20-days) to spot these levels.
- Use trendline to continue your trades.
- Exit once price breaches the trendline.
World stock markets are in a strong downtrend as bond yields spike. We have seen these kind of sell-offs in world stock markets previously also. Then big central banks step-in, declare some stimulus and stocks markets start rallying. Right now, global stocks are falling and until something happens to reverse the trend, we’ll continue to see this downtrend.