There’s a New Stimulus Package — Now What?

 
December 25 2020
 
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In this week's round table, we sat down with trading experts Roger Scott, James West, Jeff Yastine and Adam Sarhan.

The topic of the day was the stimulus announcement and what kind of impact it will have on the stock market, both now and in the future.
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We Have a Stimulus
Package Coming. Now What?
By now, you've likely heard and read about the new stimulus package that includes $600 payments to Americans who made less than $75,000 in 2019, and another $600 for each kid under 18. I won't bother going into the details, or whether or not it's enough. You'll get plenty of that elsewhere.

For investors like us, the bigger question is… now what?

What do we do with this information? To me, it means more of the same I've been telling you for months now.

First thing's first: Keep your focus on not just possible rewards, but also potential risks.

It will take some time for the new stimulus package to move into the economy. But it will serve as additional support for the stock market.

We must keep in mind that we could be in the midst of a bubbly melt-up phase. And in a bubble, crazy things can happen — and that includes quickly making or losing a lot of money.
See What the Stimulus Means for You
 
 
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Bollinger Bands® are a highly popular technique. Many traders believe the closer the prices move to the upper band, the more overbought the market, and the closer the prices move to the lower band, the more oversold the market. Bollinger Bands® are not a standalone trading system. They are simply one indicator designed to provide traders with information regarding price volatility.




 
 
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