After an eventful Fri where in a short span of 10mins, Mr Powell managed to wipe out the Market with billions in "loss" - be it actual or paper. Indeed he wields such influence that I wonder if he feels "stressed out" sometimes ? Afterall, there is the spiderman movie mantra "With great power comes great responsibility", no ?
Recap :
- S&P 500 : -3.37% (-141.46). Impacted.
- DJIA : -3.03% (-1,008.38). Least impacted.
- Nasdaq : -3.94% (-497.55). Most affected.
Again, Nasdaq was the worst hit of the 3 boards. Little wonder due to nature / type of stocks listed on Nasdaq. Similarly during good times, it could leap-frogged to be the best as well. There's a give and take ?
A look at Tiger's Weekly activities for this week also reveals that there will be :
a. Tue (30/8). Labour movements data released.
b. Fri (2/9). Employment data released.
Believed these will hint at how "tight" or "has loosen" the labour market currently is. More importantly, would Mr Powell and his team refers to them religiously to arrive at the next interest hike in Sep 2022 ?
There are only two possible outcome no ?
1. 0.5% interest hike - if the labour data is "promising"; by that means not tight.
2. 0.75% interest hike - if labour market is still tight; possibly indicating that the market is still "not responsive" to the interest hike so far ?
What is more "out of the box" is would the Fed be sufficiently "desperate" to raise hike interest by an unprecedent & unexpected 1.00% ? Fear that if it does, the aftermath would be a run in the 3 boards. Agree ? Would this be what JP Morgan has been sounding out lately (refer to my past Hot Pick articles) ?
Will still be watching and monitoring stocks in the Finance, Semi conductor and Energy sectors. It would be :
1. Recent purchase $Deutsche Bank AG(DB)$- add to it if it dips.
2. $United Microelectronics(UMC)$ - add to it if it dips.
3. Energy stock mmm...still researching..
What about you ? How will you approach the cross-over week between Aug and Sep ? Do you believe the adage that Sep is the worst month of the year for US stock market; hence trading ? Share your comments and thoughts below. Love to hear from you. Like this article ? Tks.
Matching song - "For Your Eyes Only" by the wonderful Sheena Easton. Dunno the tune ? YouTube it.
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Yea.. sigh
[Surprised]