Will S&P500 hit the next All Time High (ATH) ?

2021년 9월 28일

With all the commotions and noises in the market.
We have fear spreading across the world with supply chain issues, political issue (Debt Limit & Infrastructure Bill being passed) and etc.
Outer region like China, like Evergrande on the verge of collapsing due to over leverage of debt.

How will the market react?

My analysis:

I see fear-mongering as a short term impact to the economy, as investors and traders are afraid of the economy tanking due to many reasons.
As a result, we see some panic sellers taking out their position to prepare for the downside.
However, do we really know when is the time of a reversal or even the continuation of a bull run.

My method:

1. I tend to be a contrarian trader, when most news strike fears, I would set a long position with a nice entry on futures.
2. Risk management with Stop loss or Mental Stop loss.
3. Will add small positions on a huge drop, and sizeable positions on a rebound up.

Conclusion:

We never know when is the time the market crashes,
so just use risk management to ensure your portfolio will not get impacted significantly.

May the Market be With you