Analysts are routinely puzzled by the robust trades executed by the market despite bad news. Many believe that a number of trades are monetary suicides waiting to happen. Such is the momentum of the market that many seasoned traders junk their innate skepticism. They even begin to believe that everything works out eventually. These traders mix fact with fiction. In the fictional world, even the most negative of negatives could turn out to be positives. This rarely occurs in the real world.
Profits and risks
For the skeptical trader, there could be real incidence that investors, in their money-making greed, could be blind to the risks which are always lurking beneath the surface. Some market actions should not happen at all. The actions are too much positive. The crux of the matter is that as long as the positive sentiment lasts, the markets will only go up. This is why the rally can only continue for the time being.
Scared investors mean checking up on CBOE Volatility Index. This is especially true if stocks go up higher despite turmoil in the business world. The Index is the fear gauge of the market. It is popularly known as VIX. When a number of investors are afraid, the VIX goes up. Conversely, it goes down when the investors get confident. Analysts learn from hindsight by comparing the VIX action to the Standard & Poor 500 readings. The results can offer a large volume of insight to where the stock markets will end up in the future.
A number of experts have termed September 2017 as 'least volatile'. They have pointed out the VIX's low readings during that time. To understand the mechanism of the VIX, companies can be taken out at an individual level and examined at slices of time. Wells Fargo is one such example. The now scandal-scarred company was favored by traders and investors for the action which ultimately torpedoed the company- cross-selling. They believed that the bank had an excellent business model where it could cross-sell the products to people who could do much more than just opening any savings account.
Investors and traders love to invest in technology companies. One such company which is a favorite of investors is BioTelemetry. The company manufactures connected 'heart monitors' which feed vital information to the cloud. It is amply clear that such companies will not suffer as heathcare is a booming sector and will remain so for a long time to come.