What to do after the Federal Reserve's Powell lowers interest rates?
Today let's discuss some practical insights, my personal views, and without looking at any pre-call, we should consider how the market will move after this very important interest rate cut?
The rate cut at 3 AM on the 11th of this month is basically a foregone conclusion. Looking at the rate cuts in September and October, the market does not tend to strengthen after a rate cut.
This is because there has been no improvement in the fundamentals.
1. The plan for the U.S. to purchase $45 billion in Treasury bonds each month is, in some sense, more important than the rate cut. Powell is expected to announce this at the same time, which will also be a bearish signal.
2. On December 19, the options expiration, Japan will likely raise interest rates at midnight. If the Federal Reserve lowers interest rates and Japan raises rates, it will trigger an arbitrage trading squeeze.
3. Regarding the U.S. stock market, after the interest rate cut on December 18 last year, the U.S. stock market peaked, and the current situation also seems to mimic last year's trend.
So how should the mainstream operate next? It's already possible to position in advance!
In the past two days, the market has seen a double kill of bulls and bears. With the critical interest rate cut approaching, the risk of chasing long positions is definitely higher than chasing short positions. Personally, I currently lean towards placing short orders, as for the positions.
1. BTC around 94800, with most of the liquidation on the heatmap concentrated around 95000.
2. ETH around 3245, with daily highs in the past few days at 3240.
3. SOL at 146, which is also the daily high.
As for the take profit levels, I personally prefer to make medium to long-term arrangements, which are more worth gambling on from the perspective of macro data. For detailed inquiries: #聊天室
