Given all of the uncertainty that 2020 brought us, it wouldn’t be much of a surprise if you find yourself a bit perplexed when trying to make a near-term forecast.

 

Despite the S&P 500 managing to enter record-high territory amid the COVID-infected economic environment, it wasn’t the top performer. Gold and, strangely, bitcoin surpassed the broader market, while crude oil, unsurprisingly exhibited the true effects of COVID’s negative pressure on demand.

Screenshot-2020-11-18-at-9.15.00-PM-300x177 Snapshot of Stocks, Oil, Gold, and Bitcoin

Year to date, performance of these assets are as follows:

Crude oil: -33.23%

S&P 500: +9.77%

Gold: +23.20%

Bitcoin: +144%

Let’s take a look at each market one by one.

Screenshot-2020-11-19-at-10.20.46-AM-300x174 Snapshot of Stocks, Oil, Gold, and Bitcoin

The S&P 500 (ES) is attempting to reach new highs and is currently above its 50- and 200-EMA. However, RSI shows momentum slowing. Resistance is at 3668 and critical support is at 3200.

Screenshot-2020-11-19-at-10.22.28-AM-300x174 Snapshot of Stocks, Oil, Gold, and Bitcoin

Gold can go as low as [C] and possibly even [D] while retaining its upward momentum. The metal is stalling now, but loose monetary policy and its inflationary consequences are reason enough to remain bullish in the long-run.

Screenshot-2020-11-19-at-10.24.02-AM-300x174 Snapshot of Stocks, Oil, Gold, and Bitcoin

Crude oil is locked within a wide trading range–resistance at 44.00 and support at 36.00.

Screenshot-2020-11-19-at-10.25.51-AM-300x174 Snapshot of Stocks, Oil, Gold, and Bitcoin

Bitcoin is nearing its 2018 of 20,650. Uptrend momentum is strong, yet in terms of fundamentals, that remains wholly unknown.

 

Trading futures, options on futures, and forex involves substantial risk of loss and is not suitable for all investors. The use of leverage is not suitable for all investors and losses exceeding your initial deposit is possible. Carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources and only risk capital should be used. Opinions, market data, and recommendations are subject to change at any time. The lower the margin used the higher the leverage and therefore increases your risk. Past performance is not necessarily indicative of future results.