European indices in trouble. Nasdaq rears its head again.
As every Sunday we try to read the past week’s aggregate data of the most important international indexes.
A more specific look at the Italian index (MIB) will be taken by analyzing the performance of all 40 companies that comprise it.
What happened this week in the markets?
On Monday and Tuesday the markets tried to rise again. Optimism was curbed on Wednesday when almost all the indexes lost everything they had gained in the previous days. Thursday was a day of lateralization in preparation for a peculiar Friday. In fact, on Friday we saw a still struggling dax close with -1.09% and the nasdaq alone come in over +2%.
All down except the NASDAQ.
This title might mislead us, but in the numbers it is what happened in one week. The Nasdaq rose nearly 2 percent while the other two U.S. indexes lost (-0.63 percent S&P and -1.75 percent Dow Jones). Europe and China down over 4 percent and 3 percent, respectively.
The Nasdaq figure could mislead us because thanks to Friday’s figure alone, with +2.34 percent, it managed to have a good weekly performance.
This data certainly cannot tell us whether we are facing a recovery of the index and the beginning of a new ascent.
Here is the weekly summary table:
What we can see that almost all the world indexes are suffering.
Before looking at the performance of the MIB companies, let’s look at the monthly data of the world indices . It can be very useful to get a more real view of the situation in the markets. Perception that you do not have if you track performance on daily data only.
As we can see, the weekly optimism about the NASDAQ and idea that it is in a bullish phase is dampened for us by a monthly view where the NASDAQ is the world index that has lost the most (over 9%).
Broadening a view to a monthly level can help us have greater awareness and caution when we decide to “enter” the market.
What happened this week at MIB?
As we said, the MIB lost more than 4 percent in one week, matching the performance of the struggling European indices. Here are the top 10 performances of MIB stocks.
| Name | closing 25/09/2020 | closing date 09/18/2020 | Var % |
| Diasorin | 170,5 | 166,2283 | 2,57 |
| Snam | 4,411 | 4,3276 | 1,93 |
| Prysmian | 24,45 | 24,4718 | -0,09 |
| Inwit | 9,4 | 9,4104 | -0,11 |
| Recordati | 44,85 | 44,9834 | -0,3 |
| Italgas | 5,35 | 5,4056 | -1,03 |
| Enel | 7,335 | 7,4264 | -1,23 |
| Banco Bpm | 1,373 | 1,3949 | -1,57 |
| Interpump Group | 30,96 | 31,6962 | -2,32 |
| Nexi | 16,755 | 17,1981 | -2,58 |
Interesting, once again, to see the performance since the beginning of the year of MIB stocks.
From the data we still have confirmation of the difficulty of companies listed on the MIB.
In fact, only 13 out of 40 companies have a positive performance since the beginning of the year (same figure as the previous week).
It should be noted that the top three, DIASORIN, NEXI and RECORDATI see INWIT approaching, which from 7th place last week takes 5th place.
European markets in trouble. Has the scenario changed?
From April to August we basically had the markets in an upward phase (especially the U.S. markets). Now we have entered a phase where it is difficult to tell which direction they are going. This is the most difficult time for novice traders. As long as the market basically goes up, it is easier for those who are not trained with techniques and fundamental analysis to have good results. But the market is not always like that. It rises and falls, often lateralizes, and in these times of volatility or sudden changes in direction 75% of investors lose money. For this it is necessary to train and well. A good course can give satisfaction at all times in the market and above all avoid ending up like most people who trade: losing a lot of money.
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