Three major events exploded this week! Whether money is tight or not depends on these few days
Brothers, Shen Wansan. Let me translate what the news in the picture is saying.
The core message is: This week, the key moment that determines whether there is more or less money in the market has arrived.
Three major events are clustered:
US employment and CPI data: These two are the core for the Federal Reserve's judgment on inflation. Good data may raise interest rate expectations again, leading to global tightening; poor data will intensify concerns about economic recession. Regardless of whether it's good or bad, the market will surely shake.
Index rebalancing: In simple terms, the S&P and Nasdaq, these two major indices, will adjust their constituent stocks according to the rules. Fund managers will have to sell some and buy some, which will trigger large-scale, passive stock buying and selling, directly withdrawing or injecting huge liquidity.
What does this mean for the cryptocurrency world?
Liquidity is like water, and the cryptocurrency world is like a ship. If a portion of the water is suddenly withdrawn, this ship will surely rock the most and fall faster than anyone else. Last Friday, the Nasdaq dropped the most, which is already a signal.
What should you do?
Reduce leverage and control your hands: This week will definitely have big fluctuations, carelessly opening contracts is easy to blow up.
Watch more and act less: Focus on the market reactions after data is released and before the US stock market opens on Friday.
Prepare your bullets: If the market experiences panic and a sharp drop due to liquidity shock, that's when you should perk up and look for opportunities.
Shen Wansan's summary:
Don't just stare at the K-line chart and guess randomly. The real storms often originate from afar. Understanding the direction of macro liquidity flow will help you know whether to anchor and seek shelter or prepare to set sail.
Follow Lao Shen, after the data is released, I will show you how many fish are left in the water.
