To The Moon

On Fri, 23 Jun 2023, Russian mercenary Wagner Group, rebelled against the Russian military. The mutiny occurred following increasing tensions between the Russian Ministry of Defense and Wagner's leader Yevgeny Prigozhin. While watching the news unfolded before us, I begin to wonder whether there is any investment lesson to be learnt from this “surprise” turn of event. I confessed, sometimes I like to draw parallelism between an event (political or otherwise) and Wall Street. Actually, if you look closely, there are many of such instances just that they could be subtle and with the blink of an eye, passes us by without even the slightest of notice. LOL ! Perverse? You decide as I lay bare my “analysis”. Assumptions / Hypothesis: Russian government = (equals to) Wall Street. Wagner group

On June 21st, the trading volume of $NASDAQ(.IXIC)$ was second only to the quadruple witching day a week ago. The recent surge in technology stocks has attracted more capital, but many investors have also started to take profits. The pullback of major tech companies is currently the focus of investors. In addition to companies in the AI sector like $Microsoft(MSFT)$ $NVIDIA Corp(NVDA)$ $Meta Platforms, Inc.(META)$ , what is even more eye-catching is $Tesla Motors(TSLA)$ . Due to the continuous stream of positive news and the consecutive double-digit percentage increases in its

Last week, Federal Reserve officials, including Powell, began delivering speeches in a hawkish tone. They not only reiterated that "almost all" Fed officials support raising interest rates later this year at the June meeting, but also mentioned the possibility of two more rate hikes this year. The decision to pause rate hikes in June was aimed at slowing down the pace to a more cautious level. This outlook contrasts with the market's previous consensus, which anticipated only one rate hike and potential rate cuts later this year. According to CME's Fed Tool observation, the probability of a rate hike in July stands at 71%, and the probability of no rate cuts this year has risen to 47%, while the probability of a 25 basis point rate cut this year has decreased to 35%.Furthermore, other cent

Key points:Investors should brace for sharp swings in the weeks ahead as the stock market faces a trio of headwinds.Growing fears over the Fed, U.S. Q2 earnings seasons, as well as extreme sentiment positioning a pullback.Follow buying opportunities after pullback on High-quality shares that are showing strong relative strength amid the current market environment.Investors should brace for fresh turmoil in the weeks ahead as the stock market faces a growing risk of a near-term pullback.Cracks are widening in the year-to-date rally on Wall Street, with the blue-chip $DJIA(.DJI)$ now up +1.78% on the year. Meanwhile, the benchmark $S&P 500(.SPX)$

Fed, pause after 10 interest rate hikes The 2% U.S. inflation target in 2nd half of 2023 is realistic Valuation of equities is very attractive Falling interest rates make long-term bonds an attractive investment Central banks did last week what the market had expected. After raising interest rates ten times in a row, the Federal Reserve began a pause. The ECB raised interest rates again and is also continuing to sell bonds. The Fed's explanation revealed that interest rates may be raised twice more this year, but given the development of inflation, this is no longer necessary. US inflation is likely to reach the 2 percent target in the second half of the year. Inflation in Europe is more persistent. The ECB raised expectations regarding the development of inflation in the eurozone and pos

Amazon (NASDAQ:AMZN) seems to be facing a massive headwind due to regulatory pressures in US as well