We have seen images and videos of everything occurring in Ukraine over the last week. The stock market was anticipating the attacks and has declined quite a bit from its top the first week of 2022. It has steadily declined ever since, although we had a bounce the last couple of sessions.
Looking at the S&P500 (SPY) chart, prices have bounced before from the $420-430 area. This time, the difference is that we are currently under all the simple moving averages to include the 200 SMA. It’s as bearish as you can get in the stock market.
To turn bullish again, we must trade above the averages, which means prices need to climb over the $450 area.
Pullbacks and market sell-offs are great buying opportunities for long-term investors since you can buy your favorite stocks at discounted prices. It’s like going to the clearance section at your favorite store.
History shows that stock markets tend to drop during wartime. However, once it’s resolved, the stock market tends to begin to climb up once again.
With that said, traders have their hands full, trying to figure out which side of the trade they should position. The swings right now are significant, and traders may find themselves in losing positions relatively quickly.
On a positive note, several companies announced dividend increases over the last couple of weeks, while no company has announced dividend cuts.
The picture below shows which companies announced their dividend hikes:
Overall, we are trending lower in the stock market. Ensure to have a plan and execute your plan as close to perfection as possible. Follow your rules and stay true to yourself. Your plan should account for up and down markets as well.
We will be back next week with more updates. Glad to help!
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