Analysis of sudden market rise (4)
Continuation from above
There are currently great differences in CPI data. The broad CPI dropped from 6% to the expected 5.2%, achieving a relatively large decline. However, the annual rate of the core CPI will not fall as expected, but will rise, and even rise more than the broad CPI.
Hypothesis 1. On the surface, inflation appears to have dropped significantly, and the Fed can consider not raising interest rates, and the market will rise.
Hypothesis 2. Core CPI rebounds and may exceed the broad CPI data, indicating the stubbornness of inflation. If the Fed continues to reduce its holdings and raise interest rates, the market will fall.
In the end, it depends on how the Federal Reserve decides. Who knows.
Which end do you bet on?
Personally, I think it is safer to go short in a high position. Please don't follow me and make your own judgment. This time, my position was small, and I didn't even take a stop loss when I participated.
Free guidance, let’s eat fish and grow together🚀
