Wake up traders and be smart
Please take sometime to read this ideal
I strongly believe in the month of June, major indices will break lower and possibly find new lows, yes!
Here are the reasons why:
1) Starting with the most recent news, Shanghai just recently announced further steps to their reopening, oil prices will head up due to demand and any well seasoned traders will note that higher oil prices translates to lower/slower economy growth and risk of further inflation.
Do a simple search on this terms (shanghai lockdown oil), compare the news date and open your chart and observe how major stocks jumped
2) Secondly, sell in May and walk away, but this time round, it's not because of May, or June, or whatever that matters.
Look at the IMF report, global growth is expected to slow in the coming years. Data is based on statistics.
Inflation, inflation, inflation! A simple search will tell you the current inflation rate is at it's highest (Do note i mention highest, NOT PEAKED)
FED wish to cool down rate hikes? Cool, watch it go up, again.
3) Rate hikes ( Come on guys )
Current interest rates is at 0.75%-1%
FED recently announced that they will increase interest rates by 50 basis points in the next two meetings.
See the word Increase? Not paused or stop.
Fed is STILL raising interest rate, though moderately, but still increasing, to obviously kerb inflation.
Read the previous line again, raising interest rate, kerb inflation.
How does that translate to the economy is doing well? or inflation has already subsided?
Do some logical thinking, and you will realise the previous rally was just a temporarily news excitement.
4) Russia-ukraine tension
At the time or writing, news appeared that Ukraine is having some problems in Donbas again.
The tension between two countries have not yet been subsided, again oil prices will continue to increase.
Cheers and you are welcome to leave your comments/opinions, be careful not to be fooled by the recent rally.
Trading is a lot about human psychology, one good news or bad news and the market shakes or rally, but for how long?
I strongly believe in the month of June, major indices will break lower and possibly find new lows, yes!
Here are the reasons why:
1) Starting with the most recent news, Shanghai just recently announced further steps to their reopening, oil prices will head up due to demand and any well seasoned traders will note that higher oil prices translates to lower/slower economy growth and risk of further inflation.
Do a simple search on this terms (shanghai lockdown oil), compare the news date and open your chart and observe how major stocks jumped
2) Secondly, sell in May and walk away, but this time round, it's not because of May, or June, or whatever that matters.
Look at the IMF report, global growth is expected to slow in the coming years. Data is based on statistics.
Inflation, inflation, inflation! A simple search will tell you the current inflation rate is at it's highest (Do note i mention highest, NOT PEAKED)
FED wish to cool down rate hikes? Cool, watch it go up, again.
3) Rate hikes ( Come on guys )
Current interest rates is at 0.75%-1%
FED recently announced that they will increase interest rates by 50 basis points in the next two meetings.
See the word Increase? Not paused or stop.
Fed is STILL raising interest rate, though moderately, but still increasing, to obviously kerb inflation.
Read the previous line again, raising interest rate, kerb inflation.
How does that translate to the economy is doing well? or inflation has already subsided?
Do some logical thinking, and you will realise the previous rally was just a temporarily news excitement.
4) Russia-ukraine tension
At the time or writing, news appeared that Ukraine is having some problems in Donbas again.
The tension between two countries have not yet been subsided, again oil prices will continue to increase.
Cheers and you are welcome to leave your comments/opinions, be careful not to be fooled by the recent rally.
Trading is a lot about human psychology, one good news or bad news and the market shakes or rally, but for how long?
Comment:
Monkey Pox too! Don't discount that!
Comment:
Market is opening in a few hours, don't fall into the wrong trap. Choose your bias decisively.