Suspicious rise …

The stock prices have been pointing upwards clearly since the beginning of last week, and in the course of the recovery rally since mid-March new highs were also reached. And that despite the fact that there are enough influencing factors that actually suggest reluctance. However, a look at mood surveys reveals that the proportion of pessimists was very high at the beginning of last week. Despite the increase so far, however, it has not lost many fans of falling prices. Rather, it seems as if the variety of actors have used the last few days to get started, who have not yet invested. This means that prices have risen, but the proportion of pessimists has decreased only slightly.

Delayed entry as a driving force?

Since the proportion of negative hired actors has decreased only to a small extent, the increase in the past few days is probably also due to inexperienced investors, who mostly buy at high prices. On the other hand, the expected “short squeeze” should have driven the prices less, otherwise the pessimists would have migrated to the bull camp.

Not bad conditions?

If you only look at the mood of the market participants, the upward trend could still persist somewhat. After all, the uncertainty and skepticism can still be felt. But as long as there are many players who expect falling prices, the current rally should not run out of powder yet. However, the negative influencing factors should become noticeable in the coming weeks, which are currently being somewhat suppressed. Until then, the motto is: “the trend is your friend” and for the time being it is pointing upwards.

We wish you a successful trading week

Stephan Feuerstein
Leverage certificates traders

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