Is the moment of truth approaching in stock markets?

European indicators continue to show a strong trend at a technical level, but are clearly underlined by the scale and escalation of the conflict between Israel and Iran, which has escalated, and especially its impact on financial markets this week. Therefore, it is more than appropriate to look at the strength they represent at this particular market moment.

Indices are suffering and markets are struggling to digest the rise in oil prices caused by a possible direct conflict between Israel and Iran, which, with stock markets at their highest levels in recent months, armed conflict will be very scary for investors that they will run away if things go any further.

If we observe indicators of premium strength and trend of investment strategies, we see that although the indices are currently strong, The situation is very different from last week.and we are starting to see neutral medium-term trends, especially in the US, and SP and Nasdaq and Dow Jones are starting to see geopolitics in their prices, while This movement is not happening in Europe at the moment.

Indices are one thing, but to find out how the market is doing internally, we have to look at the strengths and weaknesses of the markets. In the area of ​​premium investment strategies, we analyze all sectors of the stock market in Spain, Europe and the USA.

Judging by the top graph 10 strongest market sectors We observe that, given the possibility of central banks not cutting interest rates, both US and European banks are very strong, in addition to other securities sectors that benefit from inflation.

If we look atBanks in Europewe see that everything They are very strong and trending upward in the medium to long term.. And even some of them are undervalued, despite the growth they have had in recent months.

That’s the good side of markets, so what’s going on in the stock market?

Well, we have to look at the weakest sectors in the markets. and we see that among The 10 weakest sectors, 5 correspond to the Spanish stock market sectors.

We are now going to look at the consumer goods sector in Spain and organize it around the weakness of these values ​​in the stock market.

We see them slowing down quickly. many stocks are very weak in terms of strength and trend indicators . PharmaMar, Atrys Health, Almirall and others. In addition to their fundamental assessment.

At this point, we can clearly say that there are industries that are weak or not ready to invest, but panic has not yet spread. We will have to watch markets and sectors to know the magnitude of the next moves in our favorite values.

If you want to know the strong and weak values ​​and market sectors, you can do so at our Premium Indicators section . Don’t invest alone, invest in the strong, the strongest.

TREND HUNTERS IN THE STOCK MARKET

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