Will the market continue to be a bloodbath or things are turning a corner?
Disclaimer: Whatever I say or post doesn't act as financial advice, so please do your due diligence before making any decision.
The market showed a slight upward movement on the opening, but seem to lose steam as it moved towards market close. A lot of people are speculating whether this is the end of the bear market, including me. So I like to provide my view on this.
Policy Uncertainty:
The unpredictable nature of Trump’s decisions—oscillating between canceling and enforcing tariffs—creates a volatile environment. This uncertainty not only affects investor sentiment but also makes it hard to predict market direction.
Impact on International Relations:
Continuous tariff threats can strain diplomatic and trade relations with partner countries. The mention of China's DeepSeek algorithm highlights that even technological advancements may be hindered by political tensions, potentially limiting beneficial collaborations.
Economic Signals:
The drop in the consumer confidence index, combined with inflationary pressures and rising raw material costs, suggests that broader economic concerns are at play. This is particularly troubling for sectors like housing, where increased costs can have a significant ripple effect.
Outlook:
Given the multiple headwinds—from policy unpredictability to economic indicators—the current market upswing seems fragile. Without a marked change in policy direction, the potential for a sustained recovery remains uncertain.
Overall, while today's slight upward movement might hint at temporary optimism, the underlying factors suggest caution as we may still face considerable downside risks.
@madluvyz - Specialist in using TA to sell options and swing trade.😺
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