The Recent Movement of U.S. Stocks: A Look into Market Dynamics

Last night, my primary concern regarding U.S. stocks revolved around whether the dip was event-driven or a result of a shift in market forces. Observing the stock market dynamics was quite intriguing: it opened lower, saw a mid-session recovery, but ultimately expanded its losses toward the end of the trading day. Notably, nearly all assets experienced rapid fluctuations around 2 AM Beijing time, indicating that something significant had occurred overseas.

Indeed, we later learned that Israel’s capital was struck by missile attacks, triggering a red alert right around 2 AM. For the full details of the attack, updates are available for further review. 🇮🇱

Understanding the Market’s Response

The movements in U.S. stocks provided me with some relief; the mid-session recovery was strong, with losses barely surpassing a fraction of a percentage point. This suggests limited short-selling power and indicates that the bulls are not yet ready to turn bearish. Considering the end-of-day performance reveals a clear event-driven pattern, rather unidirectional at that: while an attack on Iran seems a distant concern, the bombing of Israel warranted a market response.

Sector Performance Insights

Examining sector performance, airlines took the hardest hit, followed by banks, semiconductors, and technology. Interestingly, the energy sector saw gains, especially in light of India’s recent aircraft incident, which introduced a negative sentiment in that segment.

This sets a clear directional narrative for next week: can Israel control Iran? It’s up to investors to determine whether Iran represents a tangible threat or a mere backdrop to the market’s movements. This type of event-driven decline typically recovers fairly quickly, provided it does not trigger a rapid shift in market power dynamics, offering ample time for strategic maneuvers.

The Broader Investment Landscape

Returning to our own A+H market, I maintain a bullish medium-term outlook. Quite simply, beyond the stock market, are there any compelling investment opportunities out there? Bank wealth management products? Domestic bond funds? Real estate? Some might be content with bank wealth management returns of 2-3% per annum, but I’m less inclined to accept such yields. With government bond rates stagnant, those sitting in cash can reflect: being sidelined for a week might be bearable, but what about two months? I found myself uneasy after liquidating my Hong Kong stocks on Monday when my anxieties flared on Tuesday and Wednesday.

This so-called short-selling stance is essentially a bullish position aimed at finding an entry point at lower prices. True short sellers resemble a fine wine: even if the market dips, they hesitate to jump in.

Investment Strategy and Future Outlook

Though gold is often viewed as a safe haven, it remains a topic of considerable debate. Personally, I hold some and have consistently invested in oil, though I’ve paused those purchases starting yesterday. To be candid, I’m not inclined to add to my gold position at this stage—not due to bearish sentiment but because the current win rates and odds simply do not seem favorable.

My strategy is straightforward: recognize an upward trend > accumulate through periodic buying on dips > patiently wait > take profits as needed. One shouldn’t obsess over buying at the lowest or selling at the peak; confidence in buying should alleviate any hesitance when selling.

As noted yesterday, aside from certain pharmaceutical stocks, I cleared out most of my Hong Kong shares on Monday and have begun re-entering positions gradually because my prior investments have provided a strong buffer. After all, I can afford a few losses in the pursuit of gains. #a股 #美股 #股市 #我的理财日记 #基金 #恒生科技 #港股 #理财 #我的炒股日记 #行情 #投资需谨慎 #投资理财

Conclusion

As we navigate these uncertain times, understanding the forces driving market movements becomes increasingly vital. The blend of geopolitical events and market reactions underscores the importance of strategic investment decisions. As always, approach trading with caution and awareness of the current landscape.