Thanks, Powell

2021년 9월 25일

Well, friends, the markets are positive since Mr. Powell has finally brought at least some clarity! Very likely to see tapering to begin in November As a result, the market found a bottom after the S&P500 correction by 5.7%.

In the end, what's the plan for now? The answer is simple - tapering trading. We are proceeding from the fact that the growth of UST yields will resume and in this regard, we can single out the main leaders and losers. Risk-off assets - US government bonds, gold, yen - will come under pressure. At the same time, shares of the financial sector, led by US banks, company value, goods/raw materials, and, in principle, the entire wide market represented by the S&P500, will be in good demand. It is important to note that the tech sector will feel underperformed by the broader market on the back of rising bond yields.

If we look sat the S&P500 chart, then a long is unambiguously suggests itself. And ideally - a long with a correction from the specified levels of demand. Should you go right in or wait for a correction? It is up to you to decide according to your trading strategy. Personally, I will try to split the position into several entries in order to end up with an attractive price.