Stocks from the chemical, transport and industrial sectors are performing very well the last weeks and this is a clear message of the markets that investors are preparing for the post- pandemic era economy.
Furthermore, a milestone stock of economic bloom and world trade bloom, has already given its confirmation that global economy has left the worst behind. It is a stock that I had pointed out since the beginning of 2020, but back then I had focused on its move, which indicated that something was wrong. FedEx share can predict the move of S&P 500 better than any analyst. And taken that the global economy is boosted day by day, FedEx is expected to try to record new historic highs.
Next weeks are expected to be quite volatile, because expect of the general sell- offs in an attempt to secure profits, american elections are approaching and it is known that they almost always trigger volatility increase. This is also confirmed from the volatility futures curve, which is upward as we approach October, as it always happens the month prior to elections. However:
Α. The rise of the curve is not prohibitive as it is slightly higher than the current levels of VIX and this indicates that investors do not anticipate a significant impact on the markets.
Β. From November onwards, VIX curve is moving downwards again which would signal a volatility de-escalation. This is very likely to trigger a new buying interest for stocks.