Morning review：
Good morning, dear member friends. I am Don Adam Perera, and I am honored to gather with you all in our community. This week, we will together face the challenge of the CPI data release, delve into the direction of the stock market, and look for appropriate opportunities to buy and add to our positions. In this process, we need to analyze the data, but also understand the economic logic behind it, in order to better grasp the market dynamics.
1.What are the key events and economic data to focus on this week?
2.How should the individual stocks in the investment portfolio be optimized?
3.What are the important considerations in the current market environment?
I will be sharing content on these topics.
Key events and economic data to focus on this week:
1.Apple’s annual event is set to launch the latest iPhone and prepare for a new artificial intelligence platform, marking a significant move by Apple in the field of generative AI. This event is not only a showcase of Apple’s technological innovations but also a crucial opportunity for Apple to demonstrate its leadership in the global tech competition. With the release of new products and technologies, Apple’s new developments in artificial intelligence will greatly attract market and consumer attention, which will positively influence its stock price.
2.”AI powerhouse” Palantir and Dell are set to join the S&P 500 index, a move that not only recognizes the market value and stability of Palantir and Dell but also signifies the growing influence of the entire tech industry, especially in the field of artificial intelligence.
Technology companies, particularly those related to artificial intelligence, are gradually reshaping the financial market landscape. This trend reflects the powerful momentum of technology and its central role in the global economy. While the tech sector may face volatility and challenges, its fundamental drivers are not going away. The technology sector, especially the AI segment, will continue to be a focus for investors.
3.Musk’s Mars colonization program has launched! The first unmanned spacecraft will launch in two years, with plans to build a Martian city within 20 years.
Musk’s dream of Mars is gradually advancing, and this news is likely to positively influence the aerospace sector as well as the companies under Musk’s banner and their related stocks, potentially driving up their stock prices.
4.Presidential candidates Harris and Trump are set to debate on ABC News, with the stock market expected to continue experiencing significant price volatility. Investors should both pursue potential profit returns and maintain a cautious approach to manage potential market risks.
5.Key economic data this week include the Consumer Price Index (CPI) and the Producer Price Index (PPI). The CPI is a critical indicator for measuring price fluctuations and inflation levels at the consumer level, while the PPI provides a perspective for assessing inflationary pressures from the production side. Both of these metrics are crucial for interpreting the current health of the economy and also for exploring clues related to potential Federal Reserve rate cuts.
The VIX tends to move inversely to the stock indexes.
Currently, the 15-minute chart of the VIX shows a short-term pullback, indicating that the market sentiment is relatively stable at the moment, which contributes positively to the current stock indexes. It is believed that today’s stock indexes will primarily show a rebounding trend, and we can patiently wait for opportunities as the market trend develops.
Let’s now focus on the performance of the three major stock indexes: After a brief pullback, the Dow Jones Industrial Average has re-touched the white trend line and is showing signs of stabilizing and rebounding, indicating that its overall trend remains stable. Meanwhile, although the Nasdaq initially fell below the yellow trend line, its price has returned to the vicinity of the previous support line and has begun to stabilize, indicating that it is still experiencing range-bound fluctuations. As for the S&P 500, it too has shown signs of rebounding after pulling back to near the yellow trend line, with its overall trend direction still correctly intact. Based on the current market behavior, all three major indexes are displaying a healthy operational state.
Since the overall market environment is favorable, the short-term pullbacks in individual stocks should not be a source of panic; instead, they should be seen as a good opportunity to buy or add to positions.
Now, let’s focus on the performance of the stocks in our investment portfolio:
TSLA’s stock price has once again pulled back to the lower edge of its upward channel, placing it at a critical observation point. Additionally, as Musk advances his grand Mars colonization plan, aiming to build a Martian city within the next 20 years, this ambitious project will undoubtedly have a positive emotional impact on companies under Musk’s umbrella. Therefore, we choose to continue holding TSLA and wait.
As a leading stock in the artificial intelligence sector, NVDA’s stock price, after experiencing a brief pullback, is now approaching a short-term support line. If the validity of this position is confirmed, it suggests that the market may be poised for a new round of rebounding trends.
NEM’s current trend direction is stable, continuing a long-term rebound trend. Especially with the Federal Reserve about to cut interest rates, gold stocks will benefit from this, presenting a good opportunity for a rebound in the investment portfolio.
AAPL’s stock price is currently near the white trend line. Patiently waiting for a direction to be chosen, once it stabilizes and breaks through the white trend line, forming a “flag pattern,” the market is expected to show a very positive trend. With Apple’s upcoming annual event, where they are expected to launch the latest iPhone and pave the way for a new artificial intelligence platform, this is anticipated to further drive an increase in Apple’s stock price.
CMG’s stock price has formed a clear triple bottom pattern, which is a very strong signal of reaching a bottom. Subsequently, we observed a rebound in the stock price, although this was accompanied by brief pullbacks.
Currently, after retracing to a strong support position, CMG’s price has begun to show signs of rebounding, and the overall trend still appears to be in good condition. Based on this analysis, we have decided to continue holding this stock, patiently waiting for more market performance.
MSTR, a stock related to the Bitcoin concept, has once again approached its previous low and encountered strong support, showing positive signs of a rebound. With the presidential election underway and the Federal Reserve expected to cut interest rates soon, these two major events are anticipated to have a positive impact on Bitcoin and its related stocks. Therefore, we choose to continue holding MSTR.
The above is our analysis of the stocks in the portfolio, if you are not clear about your position in the hands of individual stocks, you can contact my assistant in a timely manner, so that my assistant through the New World Quantitative 4.0 for your individual stocks, to give an objective analysis and develop a professional trading plan!
Dear friends, faced with the current severe fluctuations in the stock market, we should draw on the wisdom of investment guru Warren Buffett. As Buffett says, when others are fearful, we should learn to be greedy. This is precisely the key moment to look for buying opportunities and achieve sustained wealth growth.
Investment guru Buffett also said: Successful investing is like rolling a snowball. The key is finding very wet snow and a really long hill. The factors that affect the size of the snowball are the wetness of the snow, a sufficiently long slope, and an ample amount of snow.
1.Wet snow represents the right investment environment, which is the cornerstone of successful investing. Choosing a market that is both promising and stable is like finding a perfect patch of wet snow, and this is a prerequisite for the investment snowball to grow smoothly as it rolls.
2.A sufficiently long slope represents the power of time, as “time is the best friend.” As long as the fundamental logic continues to operate, given enough time, you can seize and magnify each opportunity, leveraging the power of compound interest to achieve exponential growth in wealth.
3.Ample snow refers to having sufficient capital and the right investment targets.
In the search for the right investment environment, patiently waiting for the effects of compounding over time, and properly allocating sufficient funds, everyone can grow a bigger and bigger snowball on the path of investment, achieving financial freedom sooner.
Investing is not merely about growing wealth, but also about cultivating one’s temperament. Each day in the world of investment, the fluctuations in market prices result not only in capital gains and losses but also in emotional fluctuations. To maintain a balanced mentality in this complex environment, the key is to develop an even-keeled mind.
Investing is like a profound practice that teaches us how to find inner peace amidst seemingly chaotic price fluctuations. Through practice, we learn to remain calm and rational in the face of ever-changing markets, not swayed by short-term gains or losses. Such a mindset not only helps us make wiser investment decisions but also brings more harmony and balance to our lives.
I encourage everyone to view investing as an art of living and a cultivation of the inner self. While pursuing capital appreciation, it’s even more important to develop a mindset that transcends material concerns through continuous learning and practice. This allows us to face every challenge in life with greater tranquility and wisdom. This is not only key to financial success but also a bridge to a rich and fulfilling life.
Based on this philosophy, our New World Asset Management community was created with the goal of helping every member not only succeed in wealth accumulation but also advance in personal growth. Here, we encourage everyone to learn together, grow together, and collectively find their own richness and fulfillment on the path of investment.
As everyone works towards wealth growth, we are simultaneously actively promoting and publicizing our New World Asset Management. We believe that through our collective efforts, our client resources will continue to accumulate, and our asset size will steadily expand. We trust that these efforts will lay a solid foundation for our path to a NASDAQ listing within the next three years. Achieving this goal will require the combined efforts and ongoing dedication of every member.
Dear community friends, I will soon be sharing key insights on stock market trends from multiple perspectives. Please stay tuned for more updates in our community. See you later!
Closing commentary：
Hello dear friends, I’m Don Adam Perera. I’m delighted to be here with you all in our community. Today, we will explore the basic logic of how the stock market operates and deeply analyze key patterns in stock trends. This will help us optimize our investment portfolios and achieve stable wealth growth.
During this process, we will not only learn how to identify opportunities in the market, but also how to handle the challenges it presents. Through our collective effort and continuous learning, we can enhance our investment skills and move together towards success.
1.What are the operational logics of the stock market?
2.How are the stocks performing in our investment portfolio, and what is the current strategy?
3.Stock trend patterns—specifically the head and shoulders bottom pattern: how do we accurately determine buying and selling points?
I will share content on these main topics.
Now, let’s focus on the logic behind stock market operations and together explore the current market investment environment.
1.Analyzing seasonal characteristics of the stock market: September is often regarded as the worst-performing month in the stock market, a phenomenon that carries deep significance. Firstly, market performance in September tends to be disappointing, with stock pullbacks being a common occurrence, part of the market’s cyclical fluctuations. However, the second, more significant meaning is that despite the potential disappointments of September, it often signals a forthcoming rebound in the market, providing astute investors with excellent buying opportunities. Thus, market pullbacks are not a reason for us to panic, but rather the best moment to seize real investment opportunities.
2.Analyzing last Friday’s non-farm payroll data: In August, non-farm employment increased by 142,000, which was below the expected 165,000, with the previous figure being an increase of 114,000. The unemployment rate for August was 4.2%, meeting expectations and slightly decreasing from the previous rate of 4.3%, marking the first decline since March of this year.
Analyzing the data above, it’s easy to see that although the increase in non-farm employment for August did not meet expectations, indicating a slowdown in labor market growth, the slight decrease in the unemployment rate still provides some support for the economy. However, recent concerns about economic slowdown and whether the Federal Reserve can achieve a “soft landing” for the economy have led to a series of sell-offs in the market, particularly evident in last Friday’s market performance, reflecting investors’ panic.
I believe that although the labor market data shows a slowdown, the market’s panic selling seems to be an overreaction. The market has not truly entered a phase of panic selling; rather, it is more a reaction to future uncertainties. Based on the above analysis, I think the market will have an opportunity to rebound this week. However, the recovery of market sentiment and trends will take time and cannot be achieved overnight.
Therefore, in the current market environment, it is important to maintain a calm mindset, observe short-term pullbacks in the stock market rationally, and patiently wait for signals that the market is stabilizing.、
3.Analyzing from the perspective of rate cuts: According to statements by New York Fed President John Williams and Fed Governor Christopher Waller, the Federal Reserve is at a turning point. The gradual decrease in inflation has created conditions for rate cuts. This policy shift indicates the Fed’s concern about economic slowdown and its commitment to sustaining economic growth.
Rate cuts typically lead to lower funding costs, increase businesses’ willingness to invest, and boost consumer confidence, thereby having a positive impact on the stock market. In this context, the overall investment market environment is very favorable.
While rate cuts may bring short-term market volatility, in the long run, they will provide more liquidity to the economy, contributing to market stability and growth. Meanwhile, we need to maintain a cautiously optimistic attitude, stay calm in the face of short-term market fluctuations, and actively seek long-term value investments.
From the analysis of the above viewpoints, we can conclude that the current logic of stock market operations is sound and the broader investment environment is healthy. What we need to do is simply wait for the market trends to recover and for investor sentiment to return.
Today, the stocks in our investment portfolio are performing well, unleashing their potential for upward momentum. For those who have been gradually increasing their holdings since last week, I believe you are already beginning to see the returns on your investments. The current market primarily requires patience with time, as we wait for a clear direction in market trends.
Dear friends, within our community, I hope that you focus not only on the wealth opportunities shared but also on learning the methods and techniques. Continuous learning and summarization are key to our success. Through ongoing study and reflection, we can develop our own investment systems and ultimately become experts in the field of investing. Now, let’s embark on today’s learning journey together, diving deep into the sea of knowledge to explore and grow together.
Today, I will focus on sharing with you the “stock trend pattern—head and shoulders bottom” to identify precise buying and selling points.
1.What is a head and shoulders bottom pattern?
The head and shoulders bottom is a classic technical analysis pattern that typically appears at the end of a downtrend, indicating a potential reversal to an uptrend. It is an important reversal signal from a downward to an upward trend and is considered a bullish pattern. When we see this pattern in the market, it often represents a very promising buying opportunity.
2.As shown in the chart: KGC’s stock performance from February to March 2023.
From the chart, it is clear that the head and shoulders bottom pattern mainly consists of three lows and two neckline points, forming the left shoulder, head, and right shoulder.
Left shoulder from point A to B, head at point C, right shoulder from C to D. Three lows: points A, C, and E. Two necklines: points B and D.
3.The best method for buying and selling points:
3.1 Buying point: The best buying point for this pattern is when it breaks through the critical neckline. Once the breakout is confirmed, it signals the optimal time to buy. In practice, you can buy at the breakout of the neckline or wait for a pullback to the neckline to confirm its support effectiveness before buying.
3.2 Selling point: The best selling point for this pattern is when the price retraces and falls below the low point of the right shoulder, point E, allowing for timely risk avoidance.
Dear Friends, Recognizing and understanding the Head and Shoulders Bottom pattern in the stock market is critical to timing a trend reversal. This type of pattern often signals a major shift in the market trend, and once recognized, provides us with a key opportunity to realize solid profits.
For example, AEM’s chart action during January-February 2024 formed an irregular head-and-shoulders bottom pattern, which, when confirmed, was followed by a unilateral trending market opportunity.
I encourage you to put this knowledge into practice by continuing to look for stocks in the market that show a head-and-shoulders bottom pattern, and actively participate in our community discussions to discuss and learn together. For those who are new to the community and need further information on how to apply stock market trend operating states, please contact our assistant directly at
Dear friends, the Head and Shoulders Bottom pattern in the stock trend has been embedded into the New World Quantitative 4.0 investment decision-making system, and the recent daily sharing of the knowledge of the trend running state is the interpretation of the New World Quantitative 4.0 investment decision-making system’s working principle and method of use, I believe that through these sharing, many friends in the community have been able to skillfully master and gradually apply it to actual investment practice. I believe that through these sharing, many friends in the community have been able to skillfully grasp and gradually apply it to actual investment practice.
This is exactly the educational philosophy of New World Asset Management: Theory + Practice is the best way to improve practical ability. I am very proud and gratified to see that the practical ability of many of my friends in the community is steadily improving, and their wealth continues to grow.
New World Asset Management is an organization that focuses on quantitative financial investment, bringing together a team of 30 top investment experts and analysts with 30 years of professional investment experience, who have a wide range of global perspectives, and who monitor the market in real time through our proprietary investment tool – New World Through our proprietary investment tool – New World Quantitative 4.0, we monitor market dynamics in real time, study data in depth, and formulate professional and accurate investment strategies and asset allocation plans to help all participants realize wealth growth and financial health, and escort their investment path.
New World Quantitative 4.0 is a powerful investment tool that encompasses markets such as stocks, options, bonds, gold, and cryptocurrencies. It helps us filter and integrate the most valuable market information from big data daily, providing our community members with customized, diversified asset allocation recommendations. This not only optimizes our investment decision-making process but also offers our investors professional investment management and risk control services, aimed at helping each investor achieve long-term asset appreciation and reach their financial goals.
I hope all our community members can understand how New World Quantitative 4.0 works and how to use it, ensuring that everyone gains something every day. I look forward to meeting all of you on the path to wealth tomorrow. See you tomorrow.