The author of the 'End of Day Report' states: U.S. stocks may reach a short-term bottom on Monday, but is the true bottom below 6000 points?
Will Monday see a bottom? Trading teacher: These two types of opportunities can be monitored.
The author of the 'End of Day Report', Citrini Research, has made a statement: U.S. stocks may welcome a short-term bottom on Monday.
Although this author is known for their 'doomsday' style, this time the viewpoint is quite pragmatic—it's hard to say that the S&P 500 will stabilize in the long term before breaking below 6000 points, but there will be a sharp rebound in the short term.
For those of us who trade short-term and swing trade, this is enough.
Let me break down the logic:
From a technical perspective, after a series of adjustments in U.S. stocks recently, the bearish sentiment has been released quite thoroughly. If there is a continued downward trend on Monday, it is easy to trigger a sharp rebound from an oversold condition. But this is just a 'short-term bottom', not a 'major bottom'—if you want a reversal, first see if the S&P can stabilize above 6000 points.
In terms of operations, I suggest monitoring from two ends:
First, the technology leaders that are oversold; these stocks drop quickly and bounce back quickly, making them suitable for short-term quick in-and-out trades;
Second, high-dividend varieties with strong defensive attributes; if the rebound is less than expected, they at least have lower downside risk.
Remember this phrase in terms of rhythm: don't chase high during rebounds, and be brave to buy low during pullbacks. If there is continued decline on Monday, it may actually be a window period for short-term trial positions. But don't go too heavy, after all, it's about seizing the rebound, not bottom fishing.
As for specific targets and entry points, I will synchronize in the group before the market opens on Monday. For those who want to join in, comment '1' in the comment section.