Morning review：
Ladies and gentlemen, today we will jointly study Federal Reserve Chairman Powell’s speech and its further impact on the stock market, while also focusing on how the September ISM Manufacturing PMI figures affect the market. We will explore the main market trends and use this information to strengthen our investment portfolios and enhance their profitability. I look forward to moving forward with you on the path to wealth
1.What were the contents of Federal Reserve Chairman Powell’s speech yesterday, and what market signals were conveyed?
2.What is the role of the September ISM Manufacturing PMI data?
3.How are the stocks in the investment portfolio performing, and how should one adjust the portfolio allocation?
I will share the content on these topics
The main points from Federal Reserve Chairman Powell’s speech are as follows:
1.The central bank is not in a hurry to act and plans to lower interest rates over time while reiterating that the overall economy remains robust. He also stated that the central bank will closely monitor upcoming economic data, which will guide their future actions. If the data indicate that the economy is slowing more than expected, the Federal Reserve will implement rate cuts more quickly. Conversely, if the economic slowdown is less severe than anticipated, the pace of rate cuts will be slower.
2.The economic condition is strong, and if the economy continues on its current trajectory, the Federal Reserve might implement two more rate cuts of 25 basis points each within the year
This news has had a positive impact on the investment market, enhancing confidence in the robust development of the future economy. From Chairman Powell’s speech, it is clear that the current economic condition is strong and there are positive expectations for rate cuts. We can anticipate that stock indices may continue to show rebound potential, bringing more value-added opportunities to our investment portfolio
Today, we will focus on the upcoming release of the September ISM Manufacturing PMI data, a key indicator of the health of the manufacturing sector. A PMI reading above 50 indicates that the manufacturing sector is expanding, which generally suggests economic growth; conversely, a PMI below 50 indicates contraction, potentially signaling a slowdown in economic activity. The release of this data will provide us with important clues about future trends in the stock market
Please, everyone, be patient as we await the upcoming PMI data release, which will help us assess the health of the manufacturing sector. We can then further explore the impact of the PMI on stock indices
The VIX trend is negatively correlated with stock indices
The 15-minute VIX chart shows high-level fluctuations, reflecting that current market investors are still cautious. Therefore, we can anticipate that today’s stock indices will primarily exhibit a volatile trend, and the unstable market sentiment may limit the upward potential of the indices
In this situation, we need to operate cautiously, manage our positions wisely, capture potential profit opportunities, and not overlook possible risks. I recommend adopting a conservative strategy, avoiding excessive expansion of investment scale, and ensuring flexibility to respond to market fluctuations
Now let’s focus on the latest updates on the three major stock indices:
The Dow Jones Industrial Average continues to operate under pressure at high levels, showing a predominantly oscillatory pattern in the short term, yet still maintaining an overall bullish trend. The Nasdaq index has once again retested the “W” formation’s neckline, continuing to test the support effectiveness at this level. Once the support is confirmed, it is believed that it will continue to progress to higher positions
The S&P 500 index continues to hover at historically high levels, predominantly displaying a fluctuating trend
Based on the analysis above, although the three major stock indices are undergoing a pullback, the overall trend direction remains unchanged. Therefore, it is necessary to have sufficient patience now, waiting for further confirmation of the direction. It’s advisable to look for more suitable entry points and await optimization strategies for the investment portfolio
Now let’s focus on the performance of the stocks in our investment portfolio:
As a stock in the gold sector, NEM has once again demonstrated its strong rebound capability. While most stocks were retreating, NEM successfully stabilized and rebounded after retesting the lower edge of its ascending channel, showing remarkable market resilience. This performance is very encouraging. For those who have not yet included NEM in their investment portfolios, I suggest that now is an appropriate time to consider adding it. I believe that NEM still has significant potential for growth and upward movement in the future
After a period of continuous oscillation and consolidation, KO has shown strong performance and is currently at the upper edge of its rectangular formation. It is now gathering enough strength, waiting for a directional breakthrough. This breakthrough not only accumulates more upward momentum but also provides powerful momentum for its challenge to reach a new historical high of $73.53. This positive trend makes us more optimistic about the future profit expectations for KO
Affected by the stock index pullback, the technology sector has experienced a retreat, with both DELL and AMD showing declines.
DELL’s current price has just pulled back to near the middle Bollinger Band, a critical moment for choosing direction, requiring patience for further confirmation.
Although AMD’s price has also retreated, the overall trend direction remains unchanged, continuing its rebound trend. We will closely monitor the real-time dynamics of the technology sector and wait for further confirmation of direction
Ladies and gentlemen, the three major stock indexes have retreated significantly, the entire stock market sector run have retreated the impact of our portfolio of stocks have also been affected, but the portfolio of stocks: NEM, KO These two stocks have shown strong resilience, once again, congratulations to follow the community synchronization of the friends who built a position
If you participate in the establishment of positions in individual stocks temporarily did not get profits, please do not worry, I will continue to help you track the real-time dynamics of individual stocks, to ensure that you can get the best operating strategy in a timely manner. In the process, we will continue to optimize the portfolio, adjust the position position, to ensure the steady growth of wealth
So in the face of the current market investment environment, our overall operating strategy also needs to be adjusted. Both to chase the opportunity for sustainable wealth growth, but also to always do a good job of risk management, to ensure that the profits have been obtained in a timely manner to lock, to avoid a “roller coaster” type of retraction. Therefore, our current operating strategy is: for the already profitable stocks, appropriate position reduction or sell all, lock profits. At the same time, actively looking for new wealth opportunities, will be included in the portfolio, to ensure that our investment portfolio to maintain profitability, but also has enough defensive, can effectively avoid the potential risks associated with violent price fluctuations
Ladies and Gentlemen, I strongly encourage each and every member of our community to actively participate in our community’s wealth of opportunities and real-world trading techniques, especially in the “10th New World Quantitative 4.0 Investment Decision System Training” program that will begin this week. This training will analyze the core working principles and methods of our New World Quantitative 4.0 Investment Decision System, aiming to quickly improve your practical trading ability
By participating in this training, we will not only ensure that each of our friends’ wealth grows steadily and consistently, but we will also make a quantum leap in our professional investment knowledge. This is an important step towards wealth freedom. I believe that the upcoming “10th New World Quantitative 4.0 Investment Decision System Training Program” will be an important turning point in your wealth destiny
And in the “10th New World Quantitative 4.0 Investment Decision System Training Course”, we share a special gift – the 300% profit investment plan for the second half of 2024, which will be a powerful tool for every friend in the community to turn their dreams of wealth freedom into reality. This plan will be a powerful help for every friend in the community to turn the dream of wealth freedom into reality. I hope every friend who receives this planner will cherish it and make full use of it
We will work together to seize this valuable learning opportunity to create a better future. Let’s move forward hand in hand to help every friend in the community to better step into the ranks of wealth freedom
Ladies and gentlemen, today we will temporarily conclude our discussion on wealth opportunities, but our learning journey continues. Later, I will dive deeper into the breakout buying method during sideways market trends. I hope all of you will actively participate and immerse yourselves in the upcoming ocean of wealth knowledge, experiencing the joy of gaining both knowledge and wealth. See you shortly
Today’s quiz questions:
1.What is the role of the PMI figure, and how do we analyze and interpret it? (20 points)
2.What should our strategy be in the current investment environment? (20 points)
Closing commentary：
Ladies and Gentlemen, let’s get on with our studies, today we will be looking together at the potential impact of the latest PMI values on the stock market and how to clarify the main direction of the market based on these data.
1. what are the reasons for today’s decline in the stock market market?
2. What is the running direction of the stocks in the portfolio and how should they operate?
3. what is the buying method for a sideways breakout in a stock market trend running state?
I will share content on the above topics
Ladies and gentlemen., today we witnessed a significant pullback in the stock market, particularly in the Nasdaq and S&P 500 indices. This not only severely affected the market’s optimistic sentiment but also triggered some panic selling, with the tech sector being hit especially hard.
The reasons for today’s decline in the three major stock indices are:
1.In the latest speech by Federal Reserve Chairman Powell, he dispelled the market’s expectations for another significant rate cut, which had a negative impact on the stock market. The market had high hopes for a rate cut to stimulate further economic growth, but the reality of the speech left investors uneasy, thus impacting stock market sentiment.
2.The September ISM Manufacturing PMI report indicated a reading of 47.2, the same as the previous figure and below the expected 47.5, continuing to be under the critical point of 50. This indicates that manufacturing activity remains in contraction. This ongoing decline in manufacturing not only impacts the sector itself but could also undermine confidence in the overall economic growth outlook, thereby exerting further pressure on the stock market
Ladies and gentlemen., today we have witnessed a sharp downturn in the stock market. While this performance has caused widespread concern and some degree of panic, I want to remind everyone that we should not be misled by temporary fluctuations. A sharp decline in the market often heralds opportunities for a rebound. As the investment guru Warren Buffett said, “Be greedy when others are fearful.” This is a crucial moment for us to observe and make judgements, and it is very likely that the market will see a rebound in individual stocks tomorrow
Facing today’s significant pullback in the stock market, we should not panic, but instead look at this fluctuation from a long term perspective. Believing in the value of long term investing is exactly what shows our perseverance and patience at times like this. I will continue to hold the stocks in our portfolio and patiently wait for further clarity on market direction. In the face of stock market volatility, our goal is not just to seek short term profits, but to find opportunities for long term appreciation amidst the fluctuations. Therefore, I encourage every friend in the community to maintain sufficient patience and wait with me for those potential, substantial returns. On the journey of investing, what we need is not only keen insight but also immense patience and persistence
Although there has been some volatility in the market this week, please do not worry too much. The non-farm payroll data set to be released this Friday will provide us with more up-to-date information about the labor market, which is crucial for understanding the Federal Reserve’s future interest rate decisions. In this situation, we should remain calm and stick to our investment strategy. The current investment environment is still healthy, and we will not let short-term price fluctuations shake our confidence in holding the stocks in our portfolio. Let us continue with a robust attitude, looking forward to the returns the market will offer us
Now let’s focus on the performance of the stocks in our investment portfolio
Today, although AMD experienced some pullback, its price is still within the support range of the yellow trend line, showing that the overall trend direction has not fundamentally changed. Currently, the price is near the neckline of a “W” pattern, which is a critical support point. We need to pay close attention to the direction chosen at this position. Therefore, we choose to continue holding this stock and patiently wait for the market to provide clearer signals
DELL is currently in a short-term oscillating rebound trend, with the price having retraced back near the lower edge of the ascending channel line. From a chart analysis perspective, the previous points A and B have already formed a clear rebound trend. Currently, the price has returned to point C on the ascending channel line, which is a direction choice point that we need to focus on closely. Once a stable rebound signal is confirmed, we will consider increasing our holdings. Meanwhile, we will continue to track the stock’s movements in real time, ensuring that every friend in our community is kept up-to-date with the latest developments and corresponding trading strategies for this stock
KO is currently operating stably above the yellow and white trend lines, displaying a clear upward trend. The price is currently in a rectangular chart pattern, and we are waiting for further confirmation of the direction. Once it successfully breaks through and stabilizes above the upper edge of the rectangle, this will be a key signal confirming the uptrend, expected to bring substantial profit returns to our community members. Let’s stay focused and look forward to KO’s strong performance
Now, let’s begin our learning journey for today—the method of buying on a sideways breakout.
1.What is a sideways breakout?
A sideways breakout typically occurs after a stock price has consolidated for a period, forming a relatively stable price range, which is commonly referred to as “sideways.” A breakout happens when the price breaches either the upper or lower edge of this range. An upward breakout often signals the possible start of an ascending trend, while a downward breakout may indicate the beginning of a descending trend. Understanding this can help us seize investment opportunities and adjust strategies timely to respond to dynamic market changes.
2.The buying method for a sideways breakout:
2.1 Buying immediately after the breakout
As shown in the chart, TSM’s trend from December 2023 to March 2024. When the price of TSM successfully broke through point A, it formed a unilateral oscillating upward trend
2.2 After the breakout, wait for a pullback to buy.
As shown in the chart: AAPL’s trend from May 2024 to July 2024.
After a period of oscillating consolidation, AAPL stock strongly broke through the upper edge of the consolidation platform. However, the price did not immediately rise sharply but went through a short period of consolidation to confirm the validity of the breakout. Once confirmed, the price stabilized and began to rise quickly, forming a unilateral upward trend. This market behavior demonstrated a robust rebound after confirming a valid breakout, testing our strategy’s patience and precise execution
Ladies and Gentlemen, today we have collectively explored the buying method for a sideways breakout, a method that provides us with key timing to capitalize on the market after confirming the direction of the breakout. This method is very simple and I am sure everyone in the community has already mastered it and taken notes. We have embedded the sideways breakout buying method in our New World Quantitative 4.0 Investment Decision System, and I hope that we can all feel the power of the New World Quantitative 4.0 Investment Decision System in helping us capitalize on market opportunities
With the gradual increase in the number of friends in our community, as well as the enthusiastic return of former participants, we are fully prepared for the launch of the “10th New World Quantitative 4.0 Investment Decision System Financial Training Course”. I would like to encourage all of you to actively participate in this training, learn the working principles and methods of the New World Quantitative 4.0 Investment Decision System, and lay a solid foundation of professional knowledge for the realization of sound wealth growth
We have decided to officially open the 10th New World Quantitative 4.0 Financial Training Course at 9:30am EST on Thursday morning. During the opening ceremony, I will give you the “2024 300% Profit Investment Plan”, which I believe can better help the community to turn the dream of wealth freedom into reality. Please contact your assistant in advance to make an appointment to register, to ensure that you can attend this important event on time. We look forward to meeting each of you at the opening ceremony
Today’s wealth knowledge sharing session has successfully concluded, but our pursuit and learning about wealth are endless. Tomorrow, we will gather again to discuss the impact of September’s ADP data on the stock market and to seek strategies and opportunities for steady wealth growth. I look forward to meeting all the friends in the community again in tomorrow’s wealth opportunity session. I hope everyone actively participates, explores together, and progresses together. See you tomorrow!
Today’s knowledge quiz:
1.What is PMI used for, and what is its function? (15 points)
2.What are the strategies for the sideways breakout buying method? (15 points)