The rebound that has occurred in recent weeks in the selective equity index, the Ibex 35, has led it to test the area of 9600 points. This is the last resistance before reaching the psychological level of 10000 and in any case we are in a zone of annual highs in the last twelve months. On the other hand, it should be noted that as long as it remains at these levels there is a real possibility of a very important break up. Not surprisingly, the fact that the indicators of the national index remain positive is in their favor. And this is something that plays to the advantage of taking positions in the stocks with the best technical aspect.
In this context, it is very important to indicate that the Ibex 35 is torn between two very deep currents that can lead to an upward or downward trend depending on the evolution that this variable income market may take. So that in this way, the lateral trend in which it has been trading in the last two years can be abandoned once and for all. With margins that range between 8.500 and 9.800 euros and that can now generate a escape to the upside. In this sense, the volume of contracting that can be produced from now on will be very important.
The Ibex 35, however, is one of the stock indices that has had the worst performance within European equities. Due to the special characteristics of this financial market, but above all due to its excessive dependence on the banking sector, which has been one of the most bearish in this period of time. On the other hand, we cannot forget that the national selective index has been weighed down by the political conditions in our country and that have prevented it from reaching higher levels in the configuration of its prices. With a divergence almost 5% compared to other indices in our European environment.
Ibex 35: stronger values
In any case, there are a number of listed companies that are performing better in these months of the year. One of these cases is represented by the electricity sector that has skyrocketed in its prices. To the point that a good part of its stock values are very close to the annual maximums and in some cases even historical. As for example, in the specific cases of Endesa and Iberdrola which have reached levels of 25 and 9 euros per share, respectively. With a revaluation of over 15% in the last twelve months.
Another aspect that must be considered in this regard is the good performance that some of the values of the service sector have had. To the point that they have been some of the most benefited from this conjunctural context and that it has meant real business opportunities that have generated high profits in the operations carried out by small and medium investors. In intermediation margins ranging from 5% to 30% depending on each of the proposals that are present in the Spanish continuous market. Despite the fact that in most cases they are small and mid-cap companies.
How far can you go?
One of the questions that many small and medium investors ask themselves is the levels that the selective index of national equities can reach. Well, if the psychological limit of 10.000 euros is exceeded, it cannot be ruled out that it may reach very about 11.000 euros. In other words, it would have a significant upward trend and that it would serve to open positions from now on. Since a very interesting uptrend would open to invest in the stock market. Despite the corrections that could be developed in this period and that would serve in any case to enter positions with a more competitive price than at the moment. So that in this way, there are no surprises that could alter the capital of the investments, in the face of a foreseeable unwanted scenario in the international equity markets.
While on the other hand, if the 10.000 level could not be overcome, there is no doubt that the downward trend would be very intense from that moment on. With a stronger selling pressure than usual and that could take the Ibex 35 to levels below 9.000 euros. In this case, there would be no choice but to abandon the positions in the face of what may happen this year. Because there would be many more risks than those enabled at the moment and many euros could be lost along the way. In other words, the best position we could take is to be fully liquid and wait for the selling stream to end. Being one of the possibilities that can be developed from these precise moments.
The Ibex trades at a discount
There is a factor that must be taken into account to develop any strategy in investment and that will go depending on the profile that you present as a small and medium investor. That it can go from some more defensive positions to other merely speculative and that in both cases they have a common objective that is none other than to make profitable the savings in this space of time. Like the option of developing a savings exchange for the medium and long term in the securities that distribute dividends among their shareholders. While on the other hand, it cannot be forgotten that the Ibex 35 is trading with discounts compared to other European stocks and this is a factor that can play in your interests.
From this point of view, caution should govern actions on the stock market by retail investors. With the primary objective of preserving savings over other technical considerations and maintaining the balance in the securities account. Not surprisingly, this is after all one of its most immediate goals, as has been shown in recent years as an investment strategy. So that in this way, there are no surprises that could alter the capital of the investments, in the face of a foreseeable unwanted scenario in the international equity markets. With a control over the operations in the stock market and that can help you improve your position in the financial markets.
Decisive moment in investment
Another aspect to assess is that which refers to the fact that the Spanish stock market can make up lost ground of the last few years. And in this sense, it could be a business opportunity to make profitable savings from now on. Not surprisingly, it cannot be forgotten that the indicators in the national indices remain positive and this is a very relevant factor for stock market users who are going to take positions from now on. Where it is true that you will have to take more precautions than ever if you do not want to take unnecessary risks in this period.
Although everything will depend on the fact that in the end the level we are talking about can be exceeded, it would probably take the index to 10000. A level that divides the buying current from the seller and from which we will have to be very attentive to what may happen in the next months. Without a priori, absolutely nothing can be ruled out and it is open to all scenarios. Not surprisingly, this is after all one of its most immediate goals, as has been shown in recent years as an investment strategy.
The stock market negotiates 40.000 million
The Spanish stock market traded in rrent vvariable a total of 40.927 million euros in December, in line with the same month of the previous year and 12,8% less than in November. The number of negotiations in December was 3,15 million, 14,5% less than in the previous month of 2018 and 6,3% less than last year. While on the other hand, trading in fixed income amounted to 24.965 million euros. This figure represents an increase of 0,9% compared to the volume registered the previous month. The total accumulated contracting in the year reached 319.340 million euros, which implies a growth of 67% in relation to the twelve months of 2018.
Regarding the volume admitted to trading in the month, it was 20.052 million euros, which represents a drop of 22% compared to November. The accumulated growth in new issues until December was 4% compared to the same period of the previous year. The outstanding balance grew by 1,9% in the year, to 1,6 trillion euros. Finally, the market for derivat financial Trading increased in the first twelve months of the year by 2,9% compared to the same period of the previous year. In what constitutes the real state of the financial markets in our country during this period, according to the data provided by BME.