expand/collapse risk warning

CFDs come with a high risk of losing money rapidly due to leverage. 71% of accounts lose money when trading CFDs with this provider. You should understand how CFDs work and consider if you can take the risk of losing your money.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

71% of retail investor accounts lose money when trading CFDs with this provider.

Market Insights

Trading insight: It's going to get choppy; is profit taking about to emerge?

Copy of Blog Images - Skilling - 2023-05-19T105405.091

Market Talk

Big gains so far this year for stock indices.

Ever heard the phrase “selling into strength”?

Traders should remember that prices do not move in straight lines. Currently, there are two “known” headline potential market risk events:

  1. Mixed views emerging on whether or not central banks will need to hike interest rates further or pause.
  2. Fear the US could default on debt payments as soon as June 1st.

Considering the above potential “risk events” and the fact that stock markets have had a solid run so far since the start of 2023, if any of the known risk events crystallizes or if any new risk events pop up, investors who are deep “in the money” with stock market profits could be hard pressed to “take profits” off the table.

Stock markets have a long history of falling as a result of profit-taking, and while we are not saying that there will be such an event today or in the very near future, it is not something that investors should rule out.

Bottom line: profit-taking is a normal market “event” that happens from time to time.


Today’s economic calendar

Screenshot 2023-05-19 110130 Source: Tradingview / J. Knobel May 19 2023 6:37 UTC

Key points

  • US dollar has been trending higher. US dollar index advanced +0.7% last 5 days and +1.79% last 30 days.

Screenshot 2023-05-19 110211

  • Gold current price $1,965. The support at $1,975 failed to hold putting the $1,930s in sight, with $1,900 and $1,873 as further downside prospects. Resistance seen above the $2,020s.

Screenshot 2023-05-19 110258

  • SPX500 Index current price $4,203. The uptrend appears to have resumed after the multi-week sideways price action. $4,240s - $4,300 could be in sight as next upside targets, while risk for longs is seen below the $4,050s.

Screenshot 2023-05-19 110336

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Not investment advice. Past performance does not guarantee or predict future performance.