melson
02-20

the us bull market can last for 4 years to more than a decade while the us bear market usually last for a year or two. if you look at the pnf chart for $SPDR S&P 500 ETF Trust(SPY)$  you will notice the bull market is usually very long, much longer than the bear market phase. 

institutional investors are normally 6 months ahead of retail investors in positioning for a bull market before the fed cut rates. you can observe from the spy pnf chart that the bull market has started even before the fed started to cut rates. 

let's take a look at the leading indicator of us market, the $FTSE 100(.UKX.UK)$ . you will observe that the ukx made a breakout. 

the fed has to cut interest rates this year as high interest rates coupled with the unwinding of fed balance sheet is the equivalent of raising interest rates by a percentage point. $US2Y(US2Y.BOND)$ is very sensitive to interest rate forecast. it is currently on an uptrend. 

when the fed cuts interest rates, the market might react by 'selling the news'. 

it is important to track these 3 indicators to understand the trend of the us market. hence the conclusion is the recent drop in us market is a normal pullback.

do apply automatic investment system where you add shares at each 10% drop or at support zones if you know technical analysis. this way you conserve your capital while the stock is strongly downtrending. do take profit at 10% intervals or at resistance zones if you know technical analysis. this way you have capital to buy the dip. only applies to stocks in an index or warren buffett would approve. bon courage.

merci beaucoup@Asphen for sharing

merci beaucoup@koolgal for interesting reads

merci beaucoup@TigerStars for vouchers

merci beaucoup@TigerWire for the hot topics

Is Market Risk Gone with AI and Fed Minutes?
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Comments

  • koolgal
    02-20
    koolgal
    Hurray!  May The markets go up and up this year! 😍😍😍
  • Asphen
    02-20
    Asphen
    long rally!!!!
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