Financial Perspective: Cheong Hong Yuan's Insights into the New Trends in the US Stock Market - 1 views
started by anonymous on 22 Nov 23
started by anonymous on 22 Nov 23
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The Federal Reserve took a decisive step at its interest rate meeting earlier this month: maintaining the federal funds rate at its highest level in nearly 22 years. This move indicates its serious attitude towards inflation. According to Cheong Hong Yuan, the data behind this decision shows subtle changes in the US economy. For example, the number of new jobs added in the US last month was only 150,000, the lowest in nearly two and a half years, and the unemployment rate rose to 3.9%. In addition, initial jobless claims reached a new high within three months.
Cheong Hong Yuan's analysis suggests that these indicators not only reflect labor market slackness but also indicate a weakening in consumer spending. Specifically, retail sales in the US dropped by 0.1% last month, marking the first decline since April of this year. In the service sector, the US non-manufacturing PMI slowed to a five-month low, indicating that the expansion of the service industry is also approaching stagnation. The Atlanta Fed's GDPNow tool shows that the US economic growth rate for the fourth quarter is 2.0%, far below the 4.9% in the third quarter.
In this context, Cheong Hong Yuan believes that market expectations for the Federal Reserve to end rate hikes are increasing. Since the beginning of this year, the strong US dollar index has basically given back its previous gains, falling nearly 3% since November, marking the largest monthly decline in nearly a year. He mentioned that the "Three Golden Moving Average Strategy" is particularly important in this market environment because it can help investors capture early signals of market trend changes and find stable investment opportunities in this uncertainty.
Cheong Hong Yuan's analysis points out that in the current uncertain and volatile market, traditional investment strategies may no longer be effective. The "Three Golden Moving Average Strategy" provides a more data-driven and objective decision-making approach by analyzing the moving averages of stocks to identify market trends and make appropriate buy or sell decisions.
In the current US stock market, one of the main challenges investors face is how to deal with market volatility caused by uncertainty in Federal Reserve policies. Cheong Hong Yuan believes that the "Three Golden Moving Average Strategy" can help investors determine favorable buying or selling opportunities by observing the relative position of stock prices to their moving averages. For example, a stock price breaking through a long-term moving average may indicate a good buying opportunity.
By analyzing recent market data, Cheong Hong Yuan points out several cases where the "Three Golden Moving Average Strategy" is applicable. In the past few months, the performance of certain technology stocks has exceeded their long-term moving averages, which may be a positive signal for buying. At the same time, he also emphasizes that investors should avoid relying too much on any single technical indicator and instead make decisions based on the overall market trend and specific performance of individual stocks.
Cheong Hong Yuan's analysis shows that although the current US stock market is full of challenges and uncertainties, the "Three Golden Moving Average Strategy" provides an effective tool to deal with these challenges and help investors make wiser investment decisions in a complex market environment. He emphasizes that successful investment requires not only a deep understanding of the market but also effective tools and strategies to guide actions. In this ever-changing financial era, the "Three Golden Moving Average Strategy" is exactly such a tool.