Morning review：
Dear friends, good morning, I’m Don Adam Perera, and I’m thrilled to be here with you all. Today, we will explore how significant market events affect the stock market and together seek new wealth opportunities. In this ever-changing market, understanding how various events impact the stock market is crucial. We will analyze the logic behind these events together to better grasp market dynamics.
What are the current significant events in the stock market?
Where are we focusing our attention for market opportunities right now?
I will share on these topics.
Today’s key event to focus on:
1.The Israeli military announced that it used about 100 fighter bombers to carry out air strikes on Lebanon, marking the largest conflict along the Lebanon border in the past ten months. This event has significantly heightened tensions in the Middle East, leading to a continued focus on safe-haven assets, particularly gold, in the market.
As tensions in the Middle East continue to escalate, I believe the market’s risk-averse sentiment will persist for an extended period, and holding gold will be part of our mid-term strategy.
2.At the Hot Chips 2024 conference, NVIDIA unveiled more details about its next-generation GPU architecture, Blackwell, as well as its future product roadmap.
From a long-term perspective, this will have a positive impact on NVDA itself and the technology sector as a whole.
Yesterday, I shared with friends the use of the VIX to gauge changes in investor sentiment and to predict stock index performance. Now, let’s focus on the current shifts in investor sentiment.
Observing the VIX 15-minute trend chart, the VIX’s price fluctuation and rebound indicate significant volatility in investor sentiment, suggesting a temporary panic. This puts certain pressure on the stock indices, expecting that the stock indices will face some pressure at the open in the short term. However, I believe that today will primarily be characterized by fluctuating patterns. It’s important to manage positions well and patiently wait for further confirmation of market dynamics.
Let’s now turn our focus to the performance of stocks in our portfolio: Yesterday, NVDA experienced a brief pullback due to a general retracement in the technology sector, but this has not altered its overall upward trend. NVDA has strong support at lower levels, which enhances its potential for continued upward movement.
Additionally, NVDA will release its second-quarter earnings report after the market closes on Wednesday. The market is optimistic about this, expecting the report to reflect the company’s solid performance and strong growth potential. Based on these factors, we choose to hold onto NVDA stock for the time being.
Yesterday, new energy stocks generally performed poorly, with TSLA also experiencing a short-term impact, leading to a brief price pullback. However, it’s noteworthy that TSLA’s overall price trend remains above the strong support line.
Additionally, on the weekly chart, it is in a “rounded bottom” formation, and currently, the price is near the support line. Therefore, despite the brief pullback, this does not affect our positive outlook on TSLA’s future trajectory, and we choose to continue holding TSLA stock.
NEM, a stock in the gold sector, has shown a consistent upward trend, indicating that it possesses strong upward momentum. Particularly, if NEM successfully breaks through the upper edge of this upward trend, it will signal that the stock has even greater upward force and is likely to experience a more significant rebound. Therefore, we will continue to monitor whether NEM can achieve this trend-breaking success.
Moreover, given the ongoing escalation of tensions in the Middle East, the increase in risk-averse sentiment in the market makes the gold sector a preferred choice for safe-haven assets. In this context, the gold sector is expected to experience a strong rebound. Additionally, the upcoming rate cuts by the Federal Reserve are also expected to further boost the prices in the gold sector. Therefore, we choose to continue holding NEM.
Although the stock market has indeed faced significant volatility recently, this does not affect our ability to seize market opportunities within our investment portfolio. Therefore, I encourage all member friends to maintain even more patience.
In this volatile market environment, patience is not only a virtue but also a necessary investment strategy. By staying calm and patient, we can analyze market dynamics more rationally and avoid making hasty decisions driven by emotion. This way, we can make the most advantageous investment choices at the right time.
Facing the current severe fluctuations in the stock market, we do not panic because we have a patented investment tool from New World Asset Management—the New World Quantitative 4.0 investment decision system, a crucial partner in our investment journey. This system perfectly integrates the most advanced algorithmic trading with quantitative analysis technologies, helping us make precise investment decisions in a complex and volatile market environment.
New World Quantitative 4.0 is an extremely powerful investment tool that integrates four core systems: the “Trading Signal Decision System,” “Quantitative Trading System,” “Investment Strategy Decision System,” and “Expert and Investment Advisor System.” This tool covers multiple investment markets including stocks, forex, bonds, options, gold, and cryptocurrencies, capable of filtering highly valuable market information daily through big data technology. It not only provides professional data collection and information synthesis services but also helps us identify and analyze market trends and predict potential market changes, enabling us to seize every investment opportunity. Currently, its success rate has reached 89%.
In the upcoming daily shares, I will focus on explaining the workings and usage of New World Quantitative 4.0. I hope all friends will pay close attention to our community’s shares every day to fully leverage this powerful tool.
Later, I will also continue to discuss with everyone in the community “how to determine the best buying and selling points in fluctuating trends,” ensuring that everyone can find clear strategies for operating in market uncertainties. See you later.
Closing commentary：
Dear friends, I am Don Adam Perera, and I am very happy to gather with all of you in our community. As we experience significant volatility in the stock market, we face together the unease brought on by price retracements, jointly optimize our investment portfolios, and explore potential wealth opportunities.
1.How are the three major stock indices performing? What signals are they sending?
2.What are the main directions in the current market? How should we operate?
3.How are the stocks in the investment portfolio performing?
4.In the state of trend operation, how should we find the best buying and selling points?
I will share on these topics.
1.From the perspective of the market investment environment, the strong signal of rate cuts conveyed by Federal Reserve Chairman Powell has released optimistic sentiment in the market, providing a favorable investment environment for the stable operation of market trends.
2.From the perspective of technical chart performance, even though there has been a brief pullback in prices, the major trend direction of the three major stock indices has not changed and continues to be upward. This suggests that the current pullback will not affect the overall trajectory of the stocks, nor should it impact our trading strategy.
3.Looking at the specific performance of stocks, the investment environment is healthy, and the trend of the three major stock indices continues to rise, which has played a positive catalytic role in the operation of the stocks.
4.From the perspective of market focus, the key events this week include the release of NVDA’s earnings report after the close on Wednesday and the publication of PCE data on Friday. These two major events will have a decisive impact on the future direction of the stock market.
5.Taking into account the main trends in the market, the technology sector, gold sector, electric vehicles, and cryptocurrency-related stocks are all key areas worth focusing on right now.
Today, we are incorporating cryptocurrency-related stocks into our investment portfolio as one of our four main strategic directions. Here, I would like to specifically explain the reasons for including cryptocurrency-related stocks:
1.Recently, Fed Chairman Powell has sent a very strong signal for rate cuts, which is positive for global investment markets, including the cryptocurrency market. It is anticipated that the cryptocurrency market will rebound, and may even enter a new bull market. Naturally, cryptocurrency-related stocks will also benefit from this.
2.Historically, the cryptocurrency market tends to enter a bull market within a year following a presidential election. Therefore, cryptocurrency-related stocks are expected to perform well.
Let’s briefly focus on the performance of stocks in our portfolio to ensure that our strategy can adapt to market changes and maximize these potential market opportunities.
Long-term strategy: We are focusing on NVDA, a leading company in the artificial intelligence sector. Currently, NVDA’s market trend is solid, and we will continue to hold and closely monitor the earnings report that will be released after the close tomorrow. This will serve as a key basis for whether we adjust our strategy.
Medium-term strategy: In the gold sector, we choose to hold NEM. This stock is showing an overall upward trend, which meets our criteria for continued holding, and is expected to continue providing stable returns.
Short-term strategy: For the electric vehicle sector, particularly TSLA, although it is currently in a fluctuating pattern, there is strong support below, so we recommend holding for now and observing subsequent trends. Additionally, the cryptocurrency-related stock MSTR is currently in a narrow fluctuation pattern; we will continue to monitor its trend line performance to determine future actions.
Overall, the stocks in our current investment portfolio are performing well in terms of trend direction, and there are no immediate issues that require adjustments, so we can continue to hold and wait. It is important to note that most stocks are currently in a fluctuating pattern, which requires us to precisely choose the best buying and selling points within this trend. The importance of this strategy should not be underestimated.
For the remainder of the time, I will focus on sharing with friends “how we should choose the best buying and selling points during a fluctuating trend.”
1.What is a fluctuating trend? A fluctuating trend refers to market prices oscillating up and down within a relatively narrow range over a period of time, without a clear upward or downward trend. In a fluctuating trend, prices typically move back and forth between certain support and resistance levels, forming a horizontal channel.
2.In a fluctuating trend, identifying key support and resistance levels is very important. These positions represent points where the market may reverse during downward and upward movements. Understanding these levels can help us develop more precise trading strategies.
3.A common trading strategy in a fluctuating trend is “buy low, sell high.” This means we buy when prices are near support levels and sell when prices approach resistance levels.
4.Demonstration of operation in a fluctuating trend.
1.When analyzing the performance of NVDA stock, we can clearly observe that the previous fluctuation range is primarily composed of five key points, labeled A, B, C, D, and E. Among these, points D and E are crucial support positions, while points A, B, and C form the resistance positions.
2.In a fluctuating trend, a basic trading strategy is to buy at the support line and sell at the resistance line. Particularly noteworthy is point C, which is a significant resistance position. Once this point is successfully breached, it indicates that the bullish rebound is very strong. Such a breakthrough typically signifies the end of the fluctuating market, and the market will choose a new direction for a trend movement.
3.Therefore, if point C is breached, we should closely monitor market dynamics as this may be a critical moment for a new upward trend to emerge. In this case, holding or increasing stock positions could lead to significant profit opportunities.
Dear friends, I hope you have mastered what I have shared today. If you encounter any questions or difficulties during the learning process, you can always contact my assistant, who will help you answer and deal with the problems you encounter. For those of you who are new to the community, you will be able to receive daily study materials to ensure that you don’t miss any important points.
Dear friends, tomorrow we will continue to discuss the direction of stock trends in our community, growing together through exploration and practice. Let’s meet in tomorrow’s community to continue our journey of wealth. See you tomorrow.