When you have a basic forecast for financial market trends, waiting for that prediction to materialize is often the most agonizing part. My recent source of anxiety stems from a potential intermediate-term top in the US stock market. Because the historically predictable impulse rally of the US Dollar Index might materialize within the next month, US equities and other risk assets could face downward pressure from a strong dollar, triggering a correction. Although this drawdown might not be massive, if we mindlessly maintain a "permabull" stance, we could suffer short-term losses. Watch for Technical Bearish Divergence According to our historical backtesting, the probability of US stocks delivering positive returns over the next three months is currently at its lowest, and a substantial dra

Over the weekend, there were frequent positive signals from the U.S.–Iran peace negotiations. If an agreement is reached, the reopening of the Strait could be imminent. As discussed in last week’s live session, the core sticking point in current negotiations lies in uranium enrichment. The U.S. is seeking Iran’s commitment to abandon uranium enrichment before lifting sanctions, while Iran prefers that sanctions be lifted first before addressing enrichment. If this divergence can be reconciled, negotiations could accelerate; otherwise, entrenched positions on both sides may stall or even derail the process. Recent developments appear favorable for the reopening of the Strait, which is likely to trigger a notable shift in market positioning next week. 1. Direct Impact on Crude Oil There is l

In my previous post, I reminded everyone to pay attention to the short-term trading opportunity at the bottom of VIX, as well as the still-bullish opportunity in short-term crude oil deferred-month contracts, namely the September WTI crude oil contract. A week has passed, and both of those calls have played out: VIX has already bottomed and turned higher: The September crude oil futures contract has rebounded continuously from the bottom, already rising 17 points from its low: This time, let’s talk about the warning I have been repeatedly giving everyone: the issue of a medium- to short-term phased pullback in U.S. stocks. As the U.S. dollar index and U.S. Treasury yields have both moved higher recently, global bond yields have broadly risen, and a pullback in global risk assets, character

Market regime review and the uncertainty of future directions Last week, Trump’s visit to China dominated most of the headlines, but after the lively atmosphere and optimistic expectations, it ultimately appears that no substantive outcomes were achieved. This led to a decline in most non-dominant risk assets in the latter part of the week, with both gold and silver signaling that the previous round of a corrective rebound has ended. However, as the summer rally approaches, whether a sustained performance can be achieved remains highly variable. Weak relative performance signals for precious metals and non-mainstream metals Silver posted a large upper shadow last week, with a intraday high near $90, but then retraced the gains over the next two trading days. The pace of the rebound is slow

Today, let’s talk about one of the hottest topics in the investment world recently: the sharp rally in the U.S. semiconductor sector. It is fair to say that, whether we look at the fundamentals and financial data or at market price performance, the semiconductor sector has become a major driver of the recent rise in U.S. equities, and arguably the dominant one. As we all know, in the recent performance of U.S. equity gains, large technology companies—especially the SOX Philadelphia Semiconductor Index—have delivered the largest share of the market’s beta gains. At the same time, in the upward revisions to average earnings-per-share expectations for the S&P 500, semiconductor names such as Nvidia and Micron have also made the biggest contributions. However, even in last week’s market ra

Geopolitical Deadlock PersistsOver the weekend, the U.S.–Iran conflict has approached the two-month mark, and the negotiation deadlock remains unresolved. The Strait of Hormuz is still blocked—regardless of whether the blockade is enforced by Iran or the United States, a large number of vessels remain stranded in the strait. Although financial markets have reacted relatively optimistically, with U.S. equities rallying while oil prices fluctuate and commodities remain broadly subdued, the underlying situation has not materially changed. Market Reaction and Inflation Outlook Persistently high oil prices will gradually feed into inflation over time, so any sudden surge in prices should not come as a surprise. Meanwhile, a shooting incident occurred during Trump’s White House press conference

Teacher Cheng Jun, a senior professional trader and analyst in the field of futures and financial derivatives, has more than 15 years of real-money margin trading experience and has been deeply engaged in financial markets since 2007. He specializes in trading and research on high-leverage instruments such as foreign exchange, gold, and futures, and has a distinctive approach to technical analysis. With the new U.S.–Iran situation continuing to unfold, the market has remained in a stalemate. Last week, major assets such as stocks, crude oil, and gold saw limited volatility. The negotiation process has yet to reach a clear outcome, and whether the final direction is a comprehensive agreement, military action, or a combination of fighting and talking, the eventual path still remains unclear.

At present, global risk appetite across risk assets is still mainly driven by U.S. equities. As the marginal impact of Federal Reserve commentary has faded, the absolute dominant force shaping market sentiment remains the progress of the U.S.-Iran war. $标普500(.SPX)$ $标普500ETF(SPY)$ $SP500指数主连 2606(ESmain)$ $微型SP500指数主连 2606(MESmain)$ $微型SP500指数2606(MES2606)$ Why do we say the Fed’s commentary has become less influential at the margin? The reason is simple. First, there is no certainty that the so-called new chair, Warsh, will actually be able to take office smoothly

The two-week negotiation window between the United States and Iran has come to an end. Over the past two weeks, market expectations were highly optimistic—U.S. equities surged, and oil prices declined. Unfortunately, as the deadline arrived, weekend news suggested that the two sides failed to reach an agreement. The final outcome will only be confirmed once a formal agreement is signed. In any case, the key signal remains unchanged: when the strait is fully reopened, that will mark the true end of this event. All other news is merely noise. There were earlier rumors suggesting that the U.S. proposed the two-week negotiation period as a cover to deploy additional military forces. If this proves true, further escalation of conflict cannot be ruled out. Investors should remain vigilant. I. Ca

Recently, the core variable in crude oil trading has still been the evolving situation in the Strait of Hormuz. Based on the information currently available, a second round of negotiations between the United States and Iran has already been put on the agenda. That, in itself, is a very important development. It suggests that the Strait of Hormuz crisis is moving away from a war-based resolution path and gradually shifting toward a negotiation-based one. In other words, the situation is easing rather than escalating. This shift matters because it directly changes the pricing logic of crude oil. If the market was previously trading on the assumption of escalating conflict, supply disruption, and uncontrolled risk, it is now beginning to price in easing tensions, advancing dialogue, and a dec

In fact, the two week window of de-escalation in the conflict has long been priced into capital market movements. Although a week ago the US and Iran were still trading harsh rhetoric, with the US even threatening to destroy Iranian civilization, after all that saber-rattling you may have noticed that crude oil did not register a new high. Moreover, the US one-year inflation expectations – which typically spike along with crude oil – and the 10-year Treasury yield – which is most sensitive to US equity moves – remained remarkably calm：  $美国10年期国债收益率(US10Y.BOND)$ $3倍做空7-10年期国债ETF-Direxion(TYO)$ $20+年以上美国国债ETF-iShares(TLT)$    In fact, the 10-yea

Market Overview This weekend coincided with China's Qingming Festival, and while overall news was quieter, international media was flooded with a barrage of unverified rumors. These ranged from President Trump falling suddenly ill to an imminent US-Iran negotiation agreement, and even a US ultimatum demanding Iran reach a deal or face escalated conflict. The strait blockade has persisted for a month, and although a few vessels are passing through, we remain far from a full reopening. Approaching Storage Limits As we enter April, the timeline previously projected by Goldman Sachs for Gulf nations' storage capacities to reach their limits is rapidly approaching. If normal navigation is not restored soon, the chain reaction across financial markets will inevitably intensify. Therefore, until

This past weekend was actually the calmest in recent weeks. Markets had expected the U.S. to deploy ground forces to seize Iran’s Kharg Island, but aside from strikes on Iranian steel plants, there was little major action. Overall, it was relatively quiet compared to prior weeks. However, actions of this scale alone by the U.S. and Israel are not enough to resolve the current blockade of the strait. The real turning point will come when the strait is reopened—that’s when a fundamental shift occurs. At present, the Pentagon appears to be aiming to replicate the rapid success seen during the 1990 Gulf War, hoping to quickly resolve the blockade within one to three months. Whether that is realistic remains to be seen, and only actual deployment will provide answers. But if even U.S. ground fo

1. US Equities Outlook $Invesco QQQ(QQQ)$ $NASDAQ(.IXIC)$ $E-mini Nasdaq 100 - main 2606(NQmain)$ $Micro E-Mini Nasdaq 100 - main 2606(MNQmain)$ $S&P 500(.SPX)$ $SPDR S&P 500 ETF Trust(SPY)$ $E-mini S&P 500 - main 2606(ESmain)$ $Micro E-mini S&P 500 - main 2606(MESmain)$I undoubtedly remain bearish on the current trajectory of US equity indices. However, for those holding naked short positions or buying the VIX on dips,