Morning review ：
Dear friends, I am Don Adam Perera, and I am delighted to be with you all in this community to witness the results of the Federal Reserve monetary policy meeting and to discuss its impact on today’s stock market dynamics
Today, we need to closely monitor the market reactions to the meeting results, look for new wealth opportunities, and continue to optimize our investment portfolio to ensure that we can keep generating profits under changing market conditions
1.How does the market respond if the Federal Reserve decides to cut interest rates?
2.How are the trends of the three major stock indices performing, and how should we adjust our trading strategies?
3.How should we optimize the stocks in our investment portfolio?
I will share content on these topics
Today is a critical day, with global investors focused on the upcoming results of the Federal Reserve’s monetary policy meeting. These results will have a direct impact on our investment strategies and the directional trends of the stock market, presenting us with more opportunities and challenges
Today’s meeting is particularly important as it directly addresses the issue of interest rate cuts, a topic of great concern to every investor. Through the results of today’s meeting, we will be able to better understand the specific extent and pace of the rate cuts, which is crucial for us to formulate or adjust our investment strategies
The Federal Reserve’s decision to cut interest rates has a profound impact on our investment strategies and market direction. A rate cut means a decrease in borrowing costs for businesses, making financing easier, which is undoubtedly beneficial for company profitability. At the same time, rate cuts also reduce the attractiveness of fixed-income assets like bonds, causing capital to flow into the potentially higher-return stock market, thereby driving up stock prices
Additionally, a rate cut lowers the lending rates for banks, increases market liquidity, and injects vitality into economic growth. This is often seen as a clear signal of the Federal Reserve’s support for economic expansion. Therefore, the implementation of a rate cut policy not only stimulates economic vitality but also provides long-term upward momentum for the stock market
Given these factors, we can anticipate that once the Federal Reserve officially announces a rate cut, it could trigger a global market celebration, presenting unprecedented money-making opportunities for investors. This will be a true global investment feast, and every investor should be prepared to leverage this opportunity for rapid wealth growth.
So, let us all look forward to this exciting moment, prepare for potential market fluctuations, and seize every money-making opportunity through wise investment decisions
The VIX index and stock indices exhibit an inverse relationship
The current 15-minute chart of the VIX index shows that prices are in a state of oscillating rebound, reflecting the relatively cautious sentiment of market investors who are closely monitoring the upcoming results of the Federal Reserve’s monetary policy meeting. This market condition advises us that the best strategy, before any clear news is confirmed, is to remain patient and observe further market developments
Therefore, I recommend that in today’s market operations, everyone should primarily focus on patiently waiting, strictly controlling positions, and not rushing to make significant adjustments. We need to wait for the final announcement of the Federal Reserve meeting results to confirm the main direction of the market, and optimize our investment portfolio, thereby achieving steady wealth growth while ensuring capital safety
Now let’s focus on the performance of the three major stock indices. The Dow Jones Industrial Average and the S&P 500 have reached historical highs and are currently showing a pattern of brief oscillations, sending a strong signal to the market: the upward momentum remains strong, and we are hopeful for even higher profit returns in the future. Additionally, the Nasdaq Composite has demonstrated a firm determination to rebound, stabilizing near the white trend line. The market is currently waiting for news from the Federal Reserve’s monetary policy meeting, and once the news is confirmed, all three indices are expected to show rebound opportunities
Overall, the performance of the Dow Jones Industrial Average, the Nasdaq Index, and the S&P 500 Index all indicate that the market remains in a healthy state, providing a positive environment to support our investment strategy
In response to the current market environment, we need to adopt a flexible and prudent strategy to optimize our investment portfolio:
1.We will continue to optimize the stock allocation within the portfolio, utilizing a combination of short-term and mid-term trading approaches. For stocks that have already generated profits, we will reduce our positions appropriately and then repurchase those positions when the stock prices retreat to key support levels
2.From a conservative investment perspective, we will wait for the outcome of today’s Federal Reserve monetary policy meeting. Based on the results of the meeting, we will focus on trading high-performing stocks to ensure our investments are safer and more favorable
3.To manage risk, we will strictly control our position sizing, recommending that overall exposure not exceed 70%. This approach to position management will help us remain responsive to the market while effectively mitigating potential adverse impacts from market volatility
Let’s now turn our focus to the stocks in our portfolio:
AAPL’s stock price is showing strong upward momentum and is bravely challenging the white trend line. This behavior reflects that bullish forces are actively accumulating, and the overall market trend is also showing a sustained rebound. Based on the current market performance, the stock price is at an excellent buying opportunity for us
It’s crucial to continue monitoring AAPL’s stock price performance. Once it successfully breaks through the white trend line, we have ample reason to believe that AAPL will display even stronger rebound opportunities, which will bring significant profit returns to our portfolio. Therefore, we choose to continue holding AAPL shares. For investors who do not yet hold AAPL in their hands, now is also a good time to buy
In the past few days, we’ve observed that AVGO stock, after experiencing a brief pullback, has now stabilized and begun to rebound. Currently, the stock price is steadily advancing towards its recent high point, once again demonstrating a strong determination to rebound. Overall, the direction of AVGO appears to be sound, showing good market momentum
To date, AVGO has already delivered a 10.47% profit return to our community of friends, marking a promising start. We believe it can continue to expand our profit margin, so we choose to keep holding and wait
MSTR, as a stock closely related to the concept of cryptocurrencies, has market performance that is tightly linked to the fluctuations in the cryptocurrency market. Recently, we’ve noticed that the cryptocurrency market has begun to counterattack, showing signs of a strong rebound. This market dynamic is a positive signal for MSTR
As the cryptocurrency market continues to strengthen, we expect MSTR will also benefit. Specifically, once MSTR’s stock price successfully breaks through the key white and yellow trend lines, we can anticipate this stock will bring more surprises and profit opportunities
Dear investor friends, the recent market optimism continues to unfold, bringing a new round of rebound momentum to the stocks in our portfolio. I am pleased to see that many friends who have been following and participating in our stock portfolio are now enjoying very nice profit returns. This is the best proof of our strategy and the best reward for our continued efforts
These achievements are due to our use of the New World Quantitative 4.0 investment decision system, which boasts powerful trend prediction and analysis capabilities. The application of this system has greatly simplified and enhanced the efficiency of our investments, making our operations more intuitive and easier to manage. Currently, its success rate has reached 89%
I believe that by continuously utilizing the New World Quantitative 4.0 investment decision system, more friends in our community will be able to experience the sense of achievement and joy that investing brings
Moreover, our hosting of the tenth session of the New World Quantitative 4.0 financial training class is not only an opportunity to share professional financial knowledge but also a crucial starting point to help everyone achieve their dreams of financial freedom. Through this training, we hope to help each participant better understand the New World Quantitative 4.0 and convert theoretical knowledge into practical operational skills, thereby advancing further on the path of investment
I believe that at that time, the reputation and market influence of our New World Asset Management will be maximized
More importantly, the tenth session of the New World Quantitative 4.0 financial training class also carries a significant responsibility—to collect and analyze more trading data, providing necessary data support for the upgrade and improvement of our New World Quantitative 4.0 investment decision system. Our top team of analysts and R&D team will use this data to continue advancing our system upgrades, ensuring the New World Quantitative 4.0 investment decision system reaches an optimal state and accelerates its rollout
Dear community, it is our common responsibility and goal to complete the testing of the New World Asset Quantitative 4.0 investment decision-making system. The active participation of every community member is the key to achieving this goal. Therefore, I hope that all of you will keep up to date with what the community shares on a daily basis and participate in our activities with a positive attitude
In particular, through active participation, when your raffle points accumulate to 100 points, you will be eligible to participate in our weekly raffle on Friday afternoons and will have a chance to win your most desired prizes
This morning’s knowledge quiz:
1.What effects does lowering interest rates have on the stock market? (15 points)
2.Given the current market environment, what are our current operational strategies? (15 points)
Dear friends, with the announcement of the Federal Reserve’s monetary policy meeting results, we anticipate the market will experience significant volatility. This volatility is not only a challenge but also an opportunity, providing us with a series of optimal buying moments. At this critical time, we will continue to closely monitor market dynamics and seek investment opportunities in quality stocks
This Friday, we will open the opportunity to simultaneously establish positions in quality stocks, which will be a great chance to sync with the market and seize the investment initiative. I encourage those who wish to participate to contact my assistant directly to register. I believe this synchronized establishment will become an important turning point in our financial destiny, bringing us more wealth opportunities and profit potential
Later, I will continue to share with you the methods and applications of identifying the head and shoulders pattern in stock market trends. See you later
Closing commentary：
Dear community friends, I am Don Adam Perera, and I am pleased to gather here with all of you today. We have jointly witnessed the positive effects on the stock market following the Federal Reserve’s decision to cut interest rates by 50 basis points. This adjustment in monetary policy has clearly benefited the market, pushing up both stock indices and individual stock prices, leading to steady growth in our investment portfolio. Although the stock indices are currently experiencing a pullback, it does not affect our confidence in seizing wealth opportunities.
1.What were the outcomes of the Federal Reserve’s monetary policy meeting, and how have they impacted the stock market?
2.How should we optimize the stocks within our investment portfolio?
3.How can we identify the head and shoulders pattern in the stock market trend, and what are the methods of application?
I will be sharing information on these topics
Dear friends, we are at an exciting moment—the Federal Reserve has announced its first rate cut since March 2020, reducing the federal funds rate by 50 basis points to 4.75%-5.00%. This decision has not only unleashed a wave of optimism in the market but also created a more favorable investment environment for all of us
Lower interest rates typically mean a reduction in the cost of capital, which can spur corporate investment and consumer spending, thereby boosting economic activity and stock market performance. For us, this presents an excellent buying opportunity, especially with the synchronized position-building opportunity coming up this Friday. In such a market context, stock prices may become more attractive, offering higher potential returns for our investment portfolio
Therefore, I encourage everyone to take advantage of the market opportunities brought about by this rate cut and actively participate in our synchronized position-building this Friday
Dear friends, the Federal Reserve’s rate cut policy has clearly propelled positive developments in the stock market, as evidenced by the current performance of the three major stock indices: the Dow Jones Industrial Average and the Nasdaq Composite Index have both briefly pulled back after reaching new historical highs; meanwhile, the Nasdaq continues to hover around the white trend line, with the overall trend direction primarily showing a pattern of fluctuations
Under the favorable backdrop of the current Federal Reserve rate cut, although the three major stock indices have experienced a brief pullback after surging, we see that they still maintain a healthy state of operation. This not only presents a good opportunity to observe market changes but also an excellent moment to seek and capitalize on wealth opportunities. What we need to do now is continue to closely monitor market dynamics and actively look for investment opportunities that can maximize our wealth profits
Now let’s focus on the performance of the stocks in our portfolio:
AVGO’s stock price has recently shown a very strong counteroffensive, allowing our community of friends to experience the profit returns brought by AVGO. Currently, the trend is influenced by a pullback in the three major stock indices, causing a brief price pullback, but this does not affect our confidence in holding AVGO
We can anticipate that once AVGO’s price successfully breaks through its recent high, it will quickly challenge the neckline of the “W” pattern. A successful breakthrough of this key resistance point will signal the start of a new “unilateral trend” in the market. Therefore, I encourage everyone to keep a close watch on AVGO stock
After experiencing a short-term pullback, AAPL’s stock price has accumulated enough strength to prepare for a counterattack. Currently, AAPL’s stock price is challenging the white trend line, a key market behavior that demonstrates the strong momentum of the stock price. Once AAPL successfully stabilizes above the white trend line, we have every reason to believe that a new unilateral trend will commence
This market performance provides us with a clear buying signal, indicating that AAPL could offer more profit opportunities in the future. Therefore, now is a good time to focus on AAPL stock and consider entering the market at the right moment
Dear friends, the Federal Reserve’s rate cut policy has undoubtedly had a positive impact on the stock market, providing a safer and more stable environment for our investments. This policy change not only guides our investment direction but also injects new vitality into the market, enhancing investor confidence.
While we seize the wealth opportunities provided by the market, I also want to emphasize that continuous learning and improving personal skills are key to success. Therefore, establishing a daily habit of continuous learning is crucial for every investor
Today, we will embark on a new learning journey – a deeper understanding of the Head and Shoulders Top pattern that runs the stock market trend. By learning how to judge and apply this pattern, we can better identify turning points in the market and develop more scientific investment strategies
Let’s learn together, grow together, arm ourselves with knowledge, and grasp opportunities with wisdom. I hope that every friend can find their own place in this market full of opportunities and realize the steady growth of wealth. Today’s study starts with the Head and Shoulders Pattern, exploring its application in the market and laying a solid foundation for our future investment decisions!
1.What is a head and shoulders pattern?
The head and shoulders pattern is a very important chart formation in technical analysis, often signaling the end of an uptrend and the imminent reversal to a downtrend. This pattern is identified by the characteristic arrangement of its three peaks, resembling a person’s head and two shoulders, with the middle peak (the head) being the highest and the two side peaks (the shoulders) being lower
The appearance of this pattern usually indicates a weakening of market momentum and a potential downward trend
2.Key components of a head and shoulders pattern:
As shown in the chart: MU’s trend from May to July 2024
Left Shoulder: The formation of the left shoulder marks the market’s initial attempt to move upward followed by a decline. During this phase, the price creates a peak, known as the left shoulder (Point B), and then retraces back to a key support level (Point C). This segment represents the initial stage of the pattern’s formation
Head: The formation of the head is the most critical part of the entire pattern. The price rises from the support level of the left shoulder, surpasses the high of the left shoulder, and reaches the highest peak of the pattern (Point D), then falls back to a support level similar to that of the left shoulder. The head’s peak exceeds the left shoulder, indicating a temporary market strength
Right Shoulder: The formation of the right shoulder is key to the completeness of the head and shoulders pattern. After the head, the price attempts to rise again, but lacks the momentum to surpass the head’s highest point, creating a relatively lower peak, which is the right shoulder (Point F). The price then falls back to a support level similar to that of the left shoulder and the head (Point E). The peak of the right shoulder is usually lower than the head, indicating that buying power is diminishing and sellers are beginning to gain the upper hand
In summary, the head and shoulders pattern fully displays the market’s transition from a tentative rise to a decline in momentum, serving as a key tool for identifying market tops and potential reversals
Dear friends, today’s session on the application and identification of the head and shoulders pattern in stock market trends has concluded. Through today’s learning, I believe everyone has gained a deep understanding of the “head and shoulders” pattern and has mastered how to apply it in actual trading
Mastering this concept not only helps us securely seize money-making opportunities in the market but also effectively avoid potential risks, thereby aiding in the steady growth of our wealth. I hope each of you can apply the knowledge learned today to your own trading practices, continuously optimize your investment strategies, and enhance your investment efficiency
For those new to our community, if you want to quickly integrate into our learning environment, you can directly contact the assistant to receive the study materials we share daily. These materials will help you quickly understand and master key market analysis knowledge, enabling you to rapidly increase your wealth on the investment path and stand out in the competition
Our learning journey is not only about gaining knowledge but also about actively participating in various community activities to achieve all-around growth and progress. In our daily activities, you can engage in multiple ways and earn raffle points
Every day, you can check in by contacting the assistant, actively answer the daily quiz questions, and offer constructive suggestions for the community’s operations and development to accumulate points. Once your accumulated points reach 100, you will be eligible to participate in our Friday raffle, which is not only a reward for your learning achievements but also a great opportunity to increase community interaction and fun. I encourage every community member to actively participate and use these opportunities to enrich their investment journey and also enhance our community’s cohesion
Today’s knowledge quiz:
1.What does the appearance of a head and shoulders pattern signify? (15 points)
2.What are the key components of a head and shoulders pattern? (15 points)
Dear friends, as the Federal Reserve announces the initiation of a rate cut policy, wealth opportunities in the current market are surging towards us like a tide. At this crucial moment, we need to demonstrate sufficient patience and full preparation to ensure that we can fully participate in the process of wealth creation. Let’s join hands and step into the ranks of financial freedom together, realizing our wealth dreams
Tomorrow, I will continue to explore the stock market’s trajectory under the backdrop of the Federal Reserve’s rate cut with all of you. I look forward to meeting you in tomorrow’s journey of wealth growth, to collectively discuss and seize every opportunity the market offers. Let’s be ready to embrace the challenges and opportunities tomorrow brings, and together find the path to success in the stock market. See you tomorrow