I thought a technical rebound would start from the beginning of the market, but it turned out to be a market where only institutions bought and foreigners watched while individuals sold. It seemed like we were headed for a hellish situation with no technical rebound.
It was really a panic situation, and it seems that many individuals did a lot of panic selling at that time.
To be honest, I didn't attach much importance to today's market.
It just bounced back a little because it fell a lot yesterday, and it even went deeper in the morning...it seems.
The market rose as foreigners started buying in earnest this afternoon,
but I don't know if they were buying at low prices or for what benefit,
but there is a possibility that they may change to selling after the US CPI announcement tonight.
Most institutional predictions expect the CPI to be lower than expected,
but if it comes out high, there is a possibility that a deeper downtrend will continue throughout this week.
So what can we choose here?
Reduce risk by selling some of the current amount
Wait and see for another day if you have cash
Bet on a CPI decline and do nothing and wait and see
Just don't respond, regardless of whether it goes up or down.
Personally, I think number 1 is more beneficial. Of course, if the CPI comes out lower than expected and Nasdaq rises, that's good, but looking at the current market situation in Korea, even with a 4% rise in the benchmark index, it rose sharply in the early morning and then fell by -10%.
Losing the trend = losing market sentiment, so to continue the upward trend, there need to be "hopes" that it can rise further. People don't sell and new investors keep pouring in.
However, the current market situation is not like that. Even a slight sign of increase = a single leverage boarding market. And since foreigners have risen to some extent, even a little downward pressure will cause it to fall sharply due to the thin order book.
That's how +4% -> -10% happens in an instant.
Unless the government authorities restrict single stock leverage & inverse products or come up with new policies, this market will continue. It is difficult to bet on a steady rise.
It's good if it goes up, but selling some and holding some cash while waiting may be more comfortable in the current market.
In this kind of market, reducing risk or not responding is the best strategy.
I hope everyone understands the risks well and makes good investments to achieve great profits.
