The recently announced non-farm employment data fell short of expectations, significantly increasing the possibility of a rate cut by the Fed. However, we need to approach this information with caution and should not simply assume that the market will immediately experience a substantial pump.
In fact, there is a certain time lag from the formation of interest rate cut expectations to the actual implementation of policies, and then to market reactions. This time window precisely provides operating space for the main market funds.
We need to recognize two key points:
Firstly, the expectation of interest rate cuts does not equate to actual market conditions. Even if the direction of interest rate cuts is clear, the market is unlikely to fully digest all potential rises before the policy is officially implemented.
Secondly, there is a lag in the flow of funds. Even if the interest rate cut policy is implemented, it will take some time for the flow of funds from the policy side to the market side, and it will not immediately create a strong force to drive the market.
For the current market with a large open interest and significant differences in opinions, this period of time is an excellent opportunity for the main funds to adjust the market. By creating fluctuations or pullbacks, they can digest floating chips and eliminate those investors who chase the rise solely based on interest rate cut expectations, laying a more solid foundation for future trends.
It is worth noting that we may even see an extreme situation where the market experiences a drop after the implementation of the interest rate cut policy. When most people believe that the good news has already been realized, the main funds may continue to push the market down until they break through the psychological barrier of most investors, completely washing away the last panic sell-offs. Only at this point may a real large-scale rise begin.
Therefore, investors should remain calm and not be misled by short-term market fluctuations. The real bull market signals are often hidden within the market's dramatic volatility, requiring us to grasp them with a longer-term perspective and a more comprehensive analysis.
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NFTragedy
· 8h ago
Consolidation is the best prelude to a bull run.
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AirdropHunter9000
· 8h ago
What a disappointment, another empty joy.
View OriginalReply0
WalletDoomsDay
· 8h ago
Is that it? Retail investors are regularly being played for suckers.
View OriginalReply0
ForumMiningMaster
· 8h ago
Don't panic, it will rise tomorrow!
View OriginalReply0
ForkItAll
· 8h ago
The bears are hoping for a fall all day long.
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BlockchainThinkTank
· 9h ago
Suckers who get played for suckers can only blame themselves for chasing the price and selling with bearish market.
The recently announced non-farm employment data fell short of expectations, significantly increasing the possibility of a rate cut by the Fed. However, we need to approach this information with caution and should not simply assume that the market will immediately experience a substantial pump.
In fact, there is a certain time lag from the formation of interest rate cut expectations to the actual implementation of policies, and then to market reactions. This time window precisely provides operating space for the main market funds.
We need to recognize two key points:
Firstly, the expectation of interest rate cuts does not equate to actual market conditions. Even if the direction of interest rate cuts is clear, the market is unlikely to fully digest all potential rises before the policy is officially implemented.
Secondly, there is a lag in the flow of funds. Even if the interest rate cut policy is implemented, it will take some time for the flow of funds from the policy side to the market side, and it will not immediately create a strong force to drive the market.
For the current market with a large open interest and significant differences in opinions, this period of time is an excellent opportunity for the main funds to adjust the market. By creating fluctuations or pullbacks, they can digest floating chips and eliminate those investors who chase the rise solely based on interest rate cut expectations, laying a more solid foundation for future trends.
It is worth noting that we may even see an extreme situation where the market experiences a drop after the implementation of the interest rate cut policy. When most people believe that the good news has already been realized, the main funds may continue to push the market down until they break through the psychological barrier of most investors, completely washing away the last panic sell-offs. Only at this point may a real large-scale rise begin.
Therefore, investors should remain calm and not be misled by short-term market fluctuations. The real bull market signals are often hidden within the market's dramatic volatility, requiring us to grasp them with a longer-term perspective and a more comprehensive analysis.