Did everyone witness last night's market situation? Starting from 11 PM, the market seemed to be on a wild ride! I've mentioned this wave of movement to everyone long ago; the logic behind it is actually not complicated at all.
The recently released October job openings data from the US reached 7.67 million, far exceeding the market expectation of 7.15 million. What does this data indicate? It means that the cooling of the US job market is not happening as quickly as everyone expected.
The market's first reaction was: Oh, the economic situation is still okay, so after the Fed cuts interest rates at 3 AM, will the pace of further cuts next year slow down? Now, there are even speculations on Wall Street that this rate cut might be the last one. Some are thinking of creating a false impression of a bull market, and once the interest rate cut news is out tonight, they will dump their positions and run, trapping investors inside.
But the problem is that a rate cut itself is good news for the market, but there are concerns about it being a "hawkish cut," which makes the market very conflicted. I think last night's market surge was driven by this conflicting mentality, with excitement from the rate cut but a lack of confidence in the future degree of monetary policy easing, so funds rushed in first.
So what should investors do? My view is quite straightforward: before major news is announced, absolutely do not guess the market direction, and definitely do not get carried away with high leverage, or you could easily lose everything! The real market trend will only become clear after 3 AM. Everyone should focus on two points: first, what Powell said in his speech, and second, the Fed's "dot plot" predicting the number of rate cuts next year. These two points directly determine whether this wave of movement can continue to perform well or just be a flash in the pan.
Want to know how the market will move after Powell's speech and which cryptocurrencies might lead the charge? Then hurry up and call 来我聊天室; once the Fed's decision is announced at 3 AM, I will immediately bring you exclusive insights and response strategies!
