June 9 smartlab post turned out to be prophetic
Once again, the rule of buying on hearsay is triggered, and selling on facts.
Markets were overheated, the Fed’s performance as a climax, correction is a natural process after so many days of growth.
But many preferred not to notice this, it is not in vain that they say that the greed of bulls is blind, and now they are beginning to clarify blurred vision by adjusting negative news:
📌 We started talking again about the 2nd wave of the virus, and a plateau, some not a plateau. In the regions of the Russian Federation, there are 🇷🇺 empty beds, by the way, something does not become less.
📌 Powell remembered the awful 2nd block as if no one knew about it. Everyone knew perfectly well, but most simply did not want to remember it.
📌 High oil reserves again 🛢 in oil storage facilities and aggravation of relations with China.
And they do it exactly at the moment when it is profitable – do not build illusions on the principles of the markets.
But there were also positive statements: this is that no one is going to stop QE (the printing press or the most important weapon of the US Federal Reserve 🗽), and there they will also increase REPO operations or something else, they will come up with something.
This means that in the absence of gray or black swans, the markets are likely to be pulled up again, but now they will only cool down a little and everything will start again …
Be patient in the marketplace and be rewarded
I am writing about the stock market here