The US Federal Reserve initiated its easing cycle with 50 basis points rate cut last week. This week, Chinese markets joined the trend on Tuesday by cutting the rate by 50 basis points. This decision sparked a rally, with the $Hang Seng Index (800000.HK)$ and $SSE Composite Index (000001.SH)$ rising more than 4% in a single day. On the same day, the Reserve Bank of Australia left its cash rate unchanged at 4.35%. Howe...

$Tesla (TSLA.US)$ looks like we are indeed getting that technical pullback I talked about yesterday. Honestly, I won't know how long it's gonna last as NDX has hit a key resistance at 15800 and getting rejected off. The pullback may end as soon as today. Which means we may not get a green Xmas week. We will have to wait and see. But for tesla, key resistance is at 978. So look out at that level. If it doesnt close above 978, it will not look bullish at all and 843 gap fill will happen sooner than later.
You will be better off waiting for a confirmation and not all dips have to be bought because sometimes better dips are right below.
As always trade safe and invest wise!
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$Society Pass (SOPA.US)$
fly to galaxy
$Phunware (PHUN.US)$
$Exela Technologies (XELA.US)$
$Tesla (TSLA.US)$
$AMC Entertainment (AMC.US)$
$Meta Platforms (FB.US)$
$Lucid Group (LCID.US)$
$Digital World Acquisition Corp (DWAC.US)$

What happened after FED's meeting?
We are currently having a sector rotation from tech growth stocks into value stocks after Wednesday's Fed policy of 3 rate hikes in 2022 instead of 2 and also speed up tapering and ending it a few months earlier than expected.
The initial taper plan was $10B for treasury securities and $5B for MBS (Mortgage Backed Securities) but now it has doubled the speed of tapering to $20B for treasury securities and $10B for MBS and tapering to end by March 2022. Which shortly after, rate hikes should come in progressively.
The reason for the fed turning hawkish and a quick shift to taper at a quicker pace and more rate hikes was due to inflation at a 40 year high. They also did not expect inflation to rise above 2% in 2021 and kept mentioning about higher inflation rate being transitory. Current inflation is at 6.8% based on the YOY report.
How did this affect the market on Thursday?
When tapering is sped up, liquidity will be tightened in the market. There will not be as much free cash to be pumped into the market to let prices rally like we have seen the last 2 years.
Interest rate hikes will also dampen valuation on growth stocks as growth stocks are priced in more to future earnings expectations. If rates rise, it will hurt those expectations. Investors will start to see bonds and value stocks that thrive in high-interest rate environments a better asset class thus making it more appealing against higher-risk growth stocks.
Small-cap stocks usually also suffer because they tend to loan more money to fund the growth of the company thus making them more sensitive towards the rate hikes.
Thus we saw the $NASDAQ 100 Index (.NDX.US)$ and $iShares Russell 2000 ETF (IWM.US)$ mostly small-cap and tech stocks falling much sharper than $Dow Jones Industrial Average (.DJI.US)$ yesterday which consist mainly of value stocks.
What to do now? Should I exit my growth holdings?
That being said, inflation and rate hikes over the long run still don't pose a huge threat to growth stocks. It is usually short-term when the rotation happens towards value stocks. So take this opportunity to find good entry points into the stocks which are undergoing the selloff.
As always, trade safe & invest wise!
$Apple (AAPL.US)$ $Tesla (TSLA.US)$ $Meta Platforms (FB.US)$ $Microsoft (MSFT.US)$ $Amazon (AMZN.US)$ $NVIDIA (NVDA.US)$ $Adobe (ADBE.US)$ $Invesco QQQ Trust (QQQ.US)$ $SPDR Dow Jones Industrial Average Trust (DIA.US)$

$Tesla (TSLA.US)$ $NIO Inc (NIO.US)$ $XPeng (XPEV.US)$ Battery capacity is growing faster than the supply chain, leading to severe shortages of some components, as well as raw materials such as copper foil. Thanks to such strong demand, miners and chemical producers have been able to raise prices and increase profits. Horace Chan, chemicals analyst at Bloomberg Intelligence, said that Investors are looking for hidden gems in the battery supply chain and are increasingly focusing on component and metal suppliers.

I worry about the signs of froth in the market and among some behavioral measures of investor sentiment; not to mention traditional valuation metrics that are historically‑stretched. This is not an environment in which greed should dominate investment decisions; but instead one for discipline around diversification and periodic rebalancing. Momentum can power the stock market beyond fundamental supports; which is why John Maynard Kenyes’ view from the 1930s remains oft‑quoted: “Markets can stay irrational longer then you can stay solvent.”
$SPDR S&P 500 ETF (SPY.US)$ $Invesco QQQ Trust (QQQ.US)$ $Tesla (TSLA.US)$ $NVIDIA (NVDA.US)$  $Disney (DIS.US)$ $Netflix (NFLX.US)$ $Apple (AAPL.US)$

$Tesla (TSLA.US)$ last chance to stock up the dip below 1000 after Fed meeting next week then moving up to 1100-1200 to end year 2021?

Fist of all, more million dollars accounts ever is the results of unprecedented QE (due to the pendamic). This just showed that the important of investing to grow your wealth because savings in the banks just can't fight the unlimited supply of money printing. I am not good in short term trading thus I only choose 3 good stocks for long term holding:
1) $Tesla (TSLA.US)$ the best performer with profits around 100%. Indeed the undisputed dominant leader in EV as expected. Will continue to hold.
2) $Apple (AAPL.US)$ Currently continue to run strong with increase momentum, profits around 50% currently. Continue to have strong confident especially Apple Car.
3) $Taiwan Semiconductor (TSM.US)$ The worse performer currently with small profits. My conviction that this company will continue to dominate the new oil of this century (precision microchips) never waver. Ready to add more if price go around 110.
Overall very happy with my account although no million dollars haha. Cheers!