Fairlead’s Katie Stockton predicts upcoming volatility in the next month.
Katie Stockton, the founder and managing partner of Fairlead Strategies, recently appeared on ‘Squawk Box’ to provide insights into current market trends and gold prices. Stockton highlighted the recent rise in gold prices, attributing it to a weaker dollar and uncertainty surrounding the economic recovery amidst the ongoing pandemic.
Stockton pointed out that technical analysis suggests gold prices are in an upward trend, with key resistance levels being surpassed. She emphasized the importance of monitoring market indicators such as moving averages to gauge the strength of this trend.
When asked about the stock market, Stockton noted that the S&P 500 index has been trading within a range in recent weeks. She highlighted the importance of breaking out of this range for the market to establish a clear direction. Stockton suggested that a breakout above the 3,400 level could indicate a further rally, while a drop below 3,200 could signal a deeper correction.
Stockton also discussed the impact of Federal Reserve policies on the markets. She mentioned that the Fed’s commitment to keeping interest rates low for an extended period has been supportive of both stocks and gold. Stockton advised investors to pay attention to any changes in the Fed’s stance, as it could have significant implications for market movements.
In terms of sectors to watch, Stockton highlighted technology and healthcare as areas that have shown strength in the current market environment. She mentioned that these sectors have been leading the market higher and recommended keeping an eye on them for potential opportunities.
Overall, Stockton remains cautiously optimistic about the markets, acknowledging the uncertainties and risks that persist. She emphasized the importance of staying informed and monitoring key indicators to navigate the current market environment successfully. Stockton’s technical analysis and insights provide valuable perspectives for investors looking to make informed decisions in these challenging times.
