The stock market has been showing significant volatility, with notable swings in market caps, creating opportunities for profit. The S&P 500 has experienced weekly fluctuations of around $1 trillion since September, and during the U.S. election week, it added $2.2 trillion in market cap. Technical traders are encouraged to take advantage of this volatility and capitalize on market swings. Algorithmic trading, which reacts to technical supply and demand levels, is growing at an annual rate of 10.5%, further influencing market sensitivity. Retail investors account for 20% of all options trades but have only gained 3.7% year-to-date, underperforming the broader market. The American stock market has outperformed European stocks by 21% this year, creating opportunities for traders. However, analysts warn that record-high prices could indicate a possible market crash, which could also present opportunities to buy the dip.
- Content Editor ( finbold.com )
- 2024-11-24
Here’s how to make money from stocks as market cap swings get ‘wild’