Morning review：
Dear friends, I am Don Adam Perera, and I am delighted to be here with you all in this community today to discuss the movements of the stock market, find the best positions to add to our holdings, and together optimize our investment portfolios. In this way, we can jointly achieve steady growth in our wealth.
1.What is the strategy for handling stocks that have experienced a significant short-term pullback?
2.How are the stocks in the investment portfolio performing, and at what point should we add to our positions?
I will be sharing content on these topics.
The VIX trend is inversely related to stock index movements. From the 15-minute VIX chart, the VIX index is at a high level, indicating that investors in the market are still cautious. From this perspective, it is expected that today’s stock market will continue to maintain a primarily weak and volatile state. In terms of operations, it is still important to control positions well while waiting for a good stabilization signal to appear.
Yesterday, due to ISM’s manufacturing data for August failing to meet market expectations, concerns about an economic recession intensified. This was particularly evident in the collective pullback of semiconductor stocks, which triggered panic selling among investors, leading to a general decline in the three major stock indices and an overall pessimistic market sentiment. However, in the field of investment, risk and opportunity often coexist. While others may feel panic, it is often also the time for us to look for potential opportunities.
For stocks that have experienced a significant short-term pullback, our strategy should be to add to our positions at appropriate points and then moderately reduce our holdings when prices rebound. This approach, combining short-term and medium-term tactics, can help us effectively engage in trading while capturing opportunities for market recovery.
Now let’s focus on the stock trends in our investment portfolio:
TSLA’s overall trend direction has not changed, and currently, its short-term price is near the trend line. It is particularly important to note the yellow trend line at the 197.84 position. Once the stock price pulls back to this position and stabilizes effectively, we should consider adding to our positions. This is a good opportunity for strategic increases based on the existing trend, which can help us capture the potential benefits of a rebound.
NEM is showing a consistent upward trend, with the current stock price near the cost price, indicating that NEM’s overall trajectory is stable. We can hold onto it for now and wait for more clear market movements.
MSTR, although currently experiencing a significant pullback, is nearing the support line at the 117.00 position. If the stock price can stabilize around this level, it would present a noteworthy opportunity to add to our positions. Such a position often indicates potential price stability or a rebound, making it an ideal time to increase our holdings.
APPL’s price is currently right near the white support line, which is often a critical point for forming a “flag pattern consolidation.” Therefore, if APPL can break through and stabilize at the 222.00 white line position, it often indicates a very good rebound opportunity. I suggest everyone be patient and observe whether it can demonstrate stability at this position.
NVDA has recently undergone a significant pullback, which has precisely reached near a critical support line at 102.65. If NVDA can successfully stabilize at this level, it typically signals a very good buying opportunity. Therefore, for investors looking for the right entry point, this is a moment to closely watch.
From chart analysis, CMG currently shows a triple bottom formation followed by a short-term rebound. However, under the pressure of the white trend line, the stock price has experienced a brief pullback. At this point, we should patiently wait to see if the stock price can stabilize at the short-term support level of $51.76. Once the stock price stabilizes at this position, it will also provide a good buying opportunity.
That concludes the analysis of the stocks in our investment portfolio and the sharing of related strategies.
The recent fluctuations in the stock market remind me of a story I shared with friends in the community during the last New World Quantitative 4.0 training session, about our experience with TSM stock. On August 1, 2023, my friends in our community and I initiated a position in TSM at $98.5 per share. Shortly after purchasing, the price of TSM entered a volatile pullback period, dropping to a low of $84.02, meaning we faced a maximum floating loss of 14.7%. At that time, many friends in the community expressed their concerns about this stock to me.
At that critical moment, we relied on New World Quantitative 4.0 for in-depth analysis and evaluation. Despite facing challenges, we decided to continue holding TSM because New World Quantitative 4.0 had provided a very clear trend prediction signal, indicating that the stock price would rise. Our decision was based on a solid foundation of analysis, and we confidently chose to keep holding. This decision ultimately brought the friends in our community a profit return of up to 50.25%, once again proving that our trust in data and analysis was correct.
We all know that short-term price fluctuations are a normal part of the market, but this should never be a reason for us to lose confidence in our holdings. Therefore, we will strictly control our positions and continue to choose to hold.
Additionally, with several economic indicators set to be released this week, we can anticipate severe market price fluctuations. Therefore, I hope everyone gradually becomes accustomed to the impact of these sharp volatilities causing temporary pullbacks in stock prices.
In this market environment, I especially hope everyone can remain calm and not be influenced by short-term market emotions. Effective investment strategies should be based on long-term observations and rational analysis, not transient market fluctuations. Therefore, when facing possible price volatilities, we should focus more on the long-term value of our holdings, rather than short-term price changes.
Dear friends, for every individual stock I share in our community, I will be responsible for tracking it thoroughly and accountable for the outcomes. Please rest assured, I will do my utmost to ensure that every member receives the necessary support and guidance.
If you are uncertain about the strategy for the stocks you hold, I suggest sending your position information to the assistant. Through the New World Quantitative 4.0 investment decision system, the assistant will provide objective analysis and professional strategies for your stocks.
New World Quantitative 4.0 is an investment decision system that integrates trend prediction and analysis, developed by New World Asset Management. It was created through the combined efforts and intelligence of numerous top investment experts, analyst teams, and R&D teams working tirelessly day and night. This system is extremely powerful, consisting of four main parts: “Trading Signal Decision System,” “Quantitative Trading System,” “Investment Strategy Decision System,” and “Expert and Investment Advisor System,” covering multiple market areas including stocks, options, bonds, gold, and cryptocurrencies.
Every day, it uses big data technology to filter out high-quality information that is helpful to us, providing the most professional services in data collection, information integration, distinguishing between real and fake news, and offering technical analysis tips. Delightfully, the success rate of this system is as high as 89.7%.
And I am gradually sharing how New World Quantitative 4.0 works and how to use it in my recent community sharing, I hope that all of my friends in the community will pay attention to and understand the content of the community sharing in a timely manner, if you would like to have a more in-depth understanding of how New World Quantitative 4.0 works or would like to get a more detailed guidance, I encourage you to contact my assistant for enrollment.
Dear friends, I will continue to share with you the topic of “How to Identify Buy and Sell Points in the Cup and Handle Pattern in Stock Market Trends” shortly. See you later.
Closing commentary：
Dear friends, I am Don Adam Perera, and I am very happy to gather with each of you in the community today to face the challenges and opportunities brought by the market. Here, we not only discuss how to perfectly integrate short-term strategies with long-term strategies, but also collectively experience the excitement and accomplishment that come from stable profits.
1.What is the overall direction of the current stock market? How should we operate?
2.How are the individual stocks in our investment portfolio performing?
3.How do we determine the buy and sell points in the cup and handle pattern during stock market trends?
I will be sharing content on these topics.
Currently, our focus is on the dynamics of the three major indices, and we can clearly see that the overall trend direction of the Dow Jones Industrial Average has not changed, remaining in a rebound trend. The Nasdaq Composite is currently near the yellow trend line, deciding on its future direction, while the S&P 500 is near the white line, with its overall trend direction also unchanged.
At the same time, considering that the Federal Reserve is about to start cutting interest rates, this suggests that a catalyst for a global market rebound is on its way, meaning we will have more opportunities to earn excess profits. Such global economic policy changes often have a positive impact on the stock market, creating a favorable environment for our investments.
Overall, the stock market environment remains healthy. Even if the stocks we hold experience a short-term pullback, as long as the overall environment is positive, these will not affect our confidence and determination to hold. Therefore, I encourage everyone to stay calm, continue with our investment strategy, and fully take advantage of the upcoming market rebound opportunities.
Dear investor friends, today in our strategy sharing, we focused on the signals for adding to our positions. The viewpoint I always maintain is this: opportunities arise when the market is in panic, while risks accumulate when the market is overheated. When others are panicking, that is the best time for us to be greedy.
TSLA displayed strong upward momentum today, successfully challenging the position at the white resistance line. This conveys a strong bullish signal, increasing our confidence and anticipation for TSLA’s future profit potential. For those holding TSLA, I suggest you remain comfortable in your positions and patiently await further market developments.
At the same time, MSTR’s stock price today once again reached a strong previous support platform, presenting a very good opportunity to add to positions. Today’s price dynamics seem to be testing the effectiveness of this support level, and once confirmed, I believe an ideal time to buy or add to positions is approaching.
This week, multiple economic data releases are expected to cause significant market price fluctuations. Therefore, all of us need to adapt to and become accustomed to the changes in stock prices these fluctuations bring. Importantly, as long as the overall market environment and general trends do not change, we should not let short-term price movements affect our confidence in our holdings.
Since we have confirmed that the overall environment and trend direction remain stable, we can confidently continue our learning journey. Today, we will explore a very important topic—how to determine buy and sell points using the cup and handle pattern in stock market trends.
1.What is the cup and handle pattern?
The cup and handle pattern is a classic technical analysis chart pattern that frequently appears in the price charts of stocks or other assets. This pattern is generally regarded as a bullish signal, indicating that once the pattern is complete, the asset’s price is likely to continue rising.
2.What are the components of the cup and handle pattern?
The cup and handle pattern primarily consists of two parts: the cup and the handle.
2.1 Cup: The first half of the cup and handle pattern typically forms a curve similar to a teacup. During this phase, the price first experiences a decline, then hits a bottom and begins to slowly rise, forming a “U” shape or bowl-shaped bottom. The formation of the cup usually takes several weeks to several months. Generally, the more symmetrical the cup shape and the smoother the bottom, the stronger the signal it sends, indicating greater potential for upward momentum.
2.2 Handle: As the price approaches the previous high during its recovery, it usually encounters some profit-taking pressure, which forms the handle part. This section may manifest as a slight decline or sideways consolidation, typically lasting from a few days to several weeks. Ideally, the handle should form on the right side of the cup, and its height should not be significantly lower than the left side’s highest point.
As shown in the chart: MSTR’s trend from January 2024 to March 2024, we can see a very clear rounded bottom formation formed by points A, B, and C, which typically represents a bullish rebound trend. Following this, the handle formed by points C and D, after completing a short-term pullback in the handle section, if it can strongly break through the highest points of the handle at C and D, it usually indicates an excellent buying opportunity.
Dear friends, I hope everyone has taken notes and understood today’s sharing about the cup and handle pattern. We have integrated the recognition and analysis of the cup and handle pattern into the New World Quantitative 4.0 investment decision system, which will make our investment decision process simpler and more efficient.
By using the New World Quantitative 4.0 investment decision system, we can more accurately identify cup and handle patterns in the market, allowing us to buy or sell at the right time. The addition of this tool will undoubtedly enhance our ability to grasp market dynamics and help us make wiser investment choices in complex market environments.
Every day, the methods and techniques I share are systematized and embedded into the New World Quantitative 4.0 investment decision system. Therefore, your daily learning is actually about deeply understanding and applying the workings and usage of this system. I strongly suggest that everyone develop the good habit of taking notes, recording content that is helpful to you, and applying what you learn to gradually build and perfect your own trading system.
Through such methods, I believe that many of you will become experts in the investment field in the near future. Continuous learning and practice are essential paths to success. Let’s work together, arm ourselves with knowledge, and create wealth with wisdom.
Today’s sharing session ends here, but our investment journey is far from over. Tomorrow, we will encounter more economic data releases, which will bring us new wealth opportunities. Let’s look forward to it together, and be ready to meet tomorrow’s challenges and seize every possible opportunity. Thank you all for your participation and attention today. Tomorrow, please continue to join us as we explore more investment wisdom. See you tomorrow!