The US stock market in August

The US stock market in August fell in response to the deterioration of the US economic index, but it climaxed last Monday with the forced selling caused by the unwinding of the yen carry trade. After that, the US stock market rose on 7 out of 8 business days, recovering the decline since August 1. However, future market trends will depend on the trend of the economy.


After the FOMC meeting in July, the focus of the market shifted from "inflation and interest rate cuts" to "economy". As a result, the current market is in a situation where good news rises and bad news falls. If economic indicators worsen, stock prices may fall again.


Also, you cannot be at ease just because there is a follow-through day. Follow-throughs are often false, and there were several false follow-through days even during the three consecutive months of decline last summer. As a result, stock prices continued to fall until they hit bottom in October.


The decline in August has ended for the time being, but future market trends will depend on economic indicators. The situation where stock prices rise when good news is released and fall when bad news is released will likely continue. Just because the follow-through date has been announced does not mean we should be complacent, but we still need to keep a close eye on economic trends.

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