Is August bullish or bearish?
The market fell sharply last night, and there must be something wrong when things are abnormal! ! !
The main reason is that funds flowed to the better performing US stocks and US Treasury markets. The unexpected decline in US Treasury yields and the rise in US stocks attracted a large number of investors, which led to capital outflows from other markets.
In addition, the remarks of Federal Reserve Chairman Powell indicate that the Fed will not be affected by political pressure and the possibility of a rate cut in September is small. If the rate cut is really carried out, it may be interpreted as the ruling party's strategy in dealing with inflation, which may have an adverse effect on politicians seeking re-election because they may lose the support of some key voters.
In short, the reason for the market decline last night is that investors transferred funds to better performing US stocks and US bonds, and Powell's statement on monetary policy independence made the market expect that interest rate cuts are unlikely in the short term, which may have a negative impact on some political campaigns and further affect market sentiment.
For A10 traders, although the market volatility last night caused some losses, there are still opportunities to make up for the losses in August. Be sure to pay close attention to market trends and adjust strategies reasonably to strive to achieve the goal of doubling positions in subsequent market conditions.
Lao Lin's homepage will continue to provide you with the latest market analysis and trading strategies. The next wave of opportunities is ready, and I look forward to discussing and communicating with you brothers and sharing more successful experiences and trading skills.
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