Stocks Rise as Dip Buyers Emerge After Selloff,Should We Follow The Trend?

Ivan_Gan
08-13

With the softening of the attitude of the Bank of Japan's rate hike, the market panic that occurred on Monday has been greatly repaired, and the Iranian retaliation against Israel that everyone is worried about has not appeared for the time being, so the market panic will gradually return to normal state.

In short, the situation of rapid decline will be difficult to occur again, which means that it is a good choice to find low-level stocks to invest after the decline.

There have been many interpretations in the market about the decline in the stock market caused by the liquidation of the yen carry trade, so I won't discuss it here. I just want to point out that this incident affects the short-term fluctuation of the market, and it is only an excuse for the stock market to fall.

The underlying reason is obviously the market correction caused by overvaluation.With the withdrawal of leveraged funds, the stock market may still hit a new high in the future, but the growth rate will not be as fast as at the beginning of the year, so please pay attention to the rhythm when you buy bottoms.

When is the timing to observe the bottom-hunting of the US stock index?

With Biden withdrawing from the election and Harris becoming a candidate, Democratic polls seem to have picked up, resulting in a decline in the popularity of the "Trump deal".

Therefore, the strength of the Nasdaq and the Dow shows signs of returning. Therefore, if you buy the bottom, everyone can Pay attention to the situation of the Nasdaq. In addition, according to the technical analysis of S&P, the low point on August 5th is likely to be the low point of the medium-term U.S. stock index.

However, according to the characteristics of the U.S. stock index, this low point may bottom out twice in the short term. If the S&P bottoms out and rebounds beyond the 20-day moving average, it means that the U.S. stock index has bottomed out and is still bullish in the follow-up. If it cannot effectively break through the 20-day moving average, buy the bottom carefully to avoid being affected by news fluctuations.

Natural gas speculative opportunities are realized

I have clearly pointed out that natural gas has a bottom-hunting opportunity in early August to rebound. This opportunity is a seasonal opportunity for natural gas. The specific reason is consistent with the logic that energy companies plan to sell natural gas at high prices during peak demand periods.

It is a short-term and rapid fluctuation opportunity. If you catch it, you will hold it. If you don't catch it, you will have to wait for the next year. Usually, the rebound rate is about 20%, and there is still a small amount of room at present. Friends who plan to speculate, remember to follow up with a small amount and withdraw as soon as they are in place. (The long-term fundamentals of natural gas are average, so it often falls back to its original position after a rebound, so it is not suitable for long-term positions, remember)

Start tracking the bottom price of US soybeans

Since June, with the bad news such as good weather and high inventories gradually fermented, the prices of agricultural products have been falling all the way. Entering August, agricultural products will further approach the bottom range (900). As long as US soybeans can continue to fall in August, it means that strategic opportunities for US soybeans will come. Now is to remind everyone to start paying attention. Don't be in a hurry to place orders and trade, but observe more and feel the fluctuation rhythm of US soybeans. This will be of great benefit to future positions. Combined with my previous series of courses on agricultural products, this investment can get twice the result with half the effort.

$NQ100 Index Main 2409 (NQmain) $$SP500 Index Main 2409 (ESmain) $$Dow Jones Index Main 2409 (YMmain) $$Gold Main 2412 (GCmain) $$WTI Crude Oil Main 2409 (CLmain) $

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Comments

  • jollyfo
    08-13
    jollyfo
    Good analysis [Applaud] It's important to observe the market before making any decisions.
  • quixzi
    08-13
    quixzi
    Great analysis
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