Recently, the broader market and most asset classes have remained locked in a relatively measured, range-bound tug-of-war. Inflation and rate-hike discussions have driven short-term volatility, but they have not triggered any meaningful change in the overall trend. Meanwhile, in a less closely watched corner of the market, the 10-year U.S. Treasury yield has gradually climbed back toward the highs of the previous tightening cycle. If bond prices lose further control from here, both the Federal Reserve and the market itself could face significant challenges. In theory, changes in U.S. interest rates drive fluctuations in Treasury prices and, in turn, movements in Treasury yields. In other words, policy rates should serve as the anchor. This year, however, long-dated Treasury yields have cle

Following last weekend’s Jackson Hole symposium, Fed Chair Kevin Warsh delivered a relatively hawkish message, prompting the market to reassess and reprice the timing of U.S. interest-rate hikes. According to the current FedWatch data, the probability of a rate hike at the end of September is slightly above 50%. This implies that the next round of nonfarm payroll and inflation data to be released next month could play an important role. From a data perspective, the probability of a rate hike surged by nearly 20 percentage points within just one week, driven entirely by Warsh’s remarks rather than by any other major economic data releases. However, based on historical experience, only probabilities above 70% tend to produce near-certain outcomes. With the current probability still below 60%

Gold has been drifting near its lows for about four weeks since bottoming in late June. Although the bulls' earlier rebound attempts made limited headway, the technical structure suggests the probability of a larger-degree rebound in the next phase still exists. This week's earnings season and the Fed's rate decision are expected to be decisive for overall market risk appetite. $Invesco QQQ(QQQ)$ $ProShares UltraPro QQQ(TQQQ)$ $ProShares UltraPro Short QQQ(SQQQ)$ $Invesco NASDAQ 100 ETF(QQQM)$ $NASDAQ(.IXIC)$ $SPDR S&P 500 ETF Trust(SPY)

Last week the Middle East situation produced fresh news again — from the U.S. air strikes on Iran to Iran closing the Strait of Hormuz — as if the old script were playing out once more. We noted before that the U.S.–Iran contest is unlikely to end peacefully, and will most probably reignite in the fourth quarter. So will the current developments bring the new fighting forward? On the whole, the probability is relatively limited, because the timing on the U.S. (Trump) side is not yet fully ready, and market behavior also shows that overall sentiment remains relatively stable. From the standpoint of long-term goals, taking Iran down — or at least striking it thoroughly — is the core demand for the U.S. However, both the military situation and inflation pressure previously meant the stalemate

Amidst the current macroeconomic environment where AI and related sectors are stealing the spotlight, the performance of crypto assets this year has been exceptionally weak, failing to capture any upward momentum. The reality is that in the realm of narrative-driven assets, Bitcoin's history and storytelling capabilities are just as strong as any other asset. However, once expectations are overdrawn and fail to materialize, a return to reality is inevitable. Nevertheless, after a sustained decline, the likelihood of a short-term stabilization and a corrective rebound is increasing. $E-mini S&P 500 - main 2609(ESmain)$ $E-mini Nasdaq 100 - main 2609(NQmain)$

After Warsh replaced Powell as the Chairman of the Federal Reserve, expectations and rumors regarding an interest rate hike within the year have persisted. The substantial inflationary pressure brought about by the outbreak of the war in the Middle East has already forced multiple central banks to opt for rate hikes in response, and there is a high probability that the Federal Reserve will not go against this trend. However, looking at history, a rate hike does not signify an inevitable change in the trend; more often than not, other external crises are required to trigger a reversal in the market's trajectory. According to the latest FedWatch data, the probability of maintaining the current interest rate level at the Federal Reserve's year-end meeting is only 22%, while the combined prob

Geopolitical tensions in the Middle East saw renewed uncertainties over the past weekend, ultimately failing to reach a comprehensive agreement. However, considering that the market's sensitivity has significantly dulled, unless hostilities officially resume, this is not expected to disrupt the performance of most assets. Recently, we can shift our focus toward the foreign exchange market. Taking the US Dollar Index (DXY) as a reference, the price action is currently hovering near a crucial watershed level. Based on our long-term bearish view on the dollar, there is reason to suspect that new selling opportunities may emerge, and the DXY itself faces the risk of a bull trap. Earlier this year, the dollar once approached its 10-year long-term trendline, but the bulls ultimately defended thi

Following Trump’s announcement over the weekend that the United States is close to reaching an agreement with Iran, oil prices naturally opened with another gap lower at the start of the week. The overall trajectory of geopolitical developments is consistent with what we anticipated in April, and this phase of relative peace is likely to last through the period around the midterm elections toward year-end. Although both technicals and news flow have dealt a double blow to the market, the structural issues in the Middle East will not be fundamentally resolved as a result. Therefore, if oil prices undergo a sufficient pullback going forward, lower levels should still provide solid support. In addition, changes on the news front are unlikely to alter the broader trends of most asset classes;

Cooling Tensions in the Middle East and Shift in Market Focus As previously anticipated, with the 30/60-day overseas military operation cycle reaching its end without further escalation, the situation in the Middle East has naturally entered a phase of “unstable peace.” This implies that the primary market narrative will extend for another 1–2 quarters, and most asset classes will fall into broad range-bound fluctuations. At this stage, after a sustained rebound, crypto assets may present opportunities to sell at higher levels. Crypto assets, which had dominated market attention in recent years, reached their peak and began to decline after Trump’s second term in the White House. A major contributing factor was the “algorithmic” liquidation event in October last year. Following this event,

Trump once believed he was the only one in the market capable of “drawing K-lines with words,” but it turns out Iran has learned the same trick. From last Friday to the beginning of this week, both sides have been locked in a tug-of-war over whether the Strait of Hormuz remains open and whether to extend ceasefire negotiations, each telling its own version of the story. Judging by market reactions, investors are largely in a passive, headline-driven mode: bullish news triggers risk-on buying, while negative developments lead to risk-off selling. Based on our analysis and judgment from last week, a delaying strategy remains the most likely scenario, with the key question being whether it is short-term or a more prolonged standoff. 1.     Negotiation Tug-of-War: Tough Tal