Playing mind games 💫💫😵. A possible rebound 🆙 or more traps to the downside ⬇️?

Hello Mooers,

Hope you have a good trading day, Seen some of you made good money on Monday while many others had made losses in the market.

Some of you have hold on.

Some disclosure, this is for education purposes and not a financial advice. Do your Due Diligence people.

Let's go! 🚀 🚀 🚀

In my last episode here are some of the polls results on what are your strategies.

Polls have shown that most of you would buy the dip! Which I congratulate you who had done that on Monday since that was a good one!

There is no Macro news for today

However, there are loads of psychological news that was happening in the past weeks.

What is the Yen 💴 Carry trade phenomenon?

The Yen Carry trade phenomenon is when the Bank of Japan 🇯🇵 wishes to raise interest rates. Meaning for the first time seeing a positive interest rates in Japan to encourage savings.

What this means for the US market?

It means that when there is an increase in borrowing cost, this will lead to paperhands in the US market. People would need to draw out money from the stock market to payback loans. This leads to tanking in the stock market.

But since some see this as an opportunity to buy the dip this means there are some demands in the market. Therefore creating such a voilatile market of buying and selling.

What does weakening Consumer Spending means?

It means people like you and me are spending lesser in the market. People are going out lesser, eating out lesser, spending lesser on luxury goods. Focusing more of saving more than spending.

Why is this a bad thing despite is good for our wallet?

Well as the saying goes one man's spending is another man's earning. If I buy something from you, that means you are earning something from me.

So if the market have lesser spenders. That means lesser demand which means lesser income in the market.

Most likely sectors in the consumer discretionary market. People will be buying less luxury and more necessity.

Will this impact on tech?

Yes this is unfortunately impacting on tech especially in the hardware sector. More people will try not to buy smartphones 📱 and gadgets.

This may also lead to a temporary slowdown in the AI development as there would be less funding to develop into AI.

Nasdaq shows that there is a rising wedge. Which means there is a possibility of the tech sector to save the market.

However, we may not be out of the woods just yet. 🌲 🌳 🌲 There is a pattern that indicated that there is a bearish pennant and a MACD still at the death cross and in divergence.

I would be seeing resistance at 17300 while support at 15500.

Mind you I may see more bearish indicators due to the weekly index. It indicates that the MACD gap is widening and may have a potential downside more than an upside.

So what sectors to look out for?

With all the concerns of political turbulence and AI slowdown. There are some sectors that you may lookout for.

Some of the sectors you could lookout for are in the Healthcare and Utilities space.

Should I still buy the dip in tech?

Tech Sector may slowdown a little however, in the long run, you may see more benefits than losses in look out for opportunities in trade as the tech sector will start to get voilatile.

I hope everyone could stay calm. Have a restful weekend. If you are facing a burnout 🔥. Stay calm and get recharged before the next trade.

Happy trading! May your traded be ever in your favour. 🥂