The Nasdaq price has undergone a patch of massive volatility outbursts recently, owing to rising market unpredictability. This erratic behaviour of the price action means that the current trading opportunity is only suitable for the least risk-averse traders who are primarily using volatility-based trading strategies.
The erratic behaviour of the price action is owing to a bundle of contributing factors. On the one hand, the looming possibility of war in the Donbas region of Ukraine still keeps traders and investors on edge. On the other, the mixed bag of economic releases that have been posted recently means that the U.S. recovery is not equal across the board and across different sectors.
Even though headline unemployment fell to its lowest level in nearly two years, the labour market added far fewer jobs in November than it was initially expected. Meanwhile, persisting supply and demand imbalances globally continue to impede economic activity, thereby causing a historic upsurge in consumer and producer prices.
In addition to all of these contributing factors, this week's highly anticipated FED meeting is sure to add to the already high levels of adverse volatility in the stock market; thereby making it more likely for the emergence of massive spikes in the Nasdaq's price action just as the general levels of liquidity are poised to drop ahead of the festive period.
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