Chinese people wake up to a huge lie
Waking up, many people may have breathed a sigh of relief because the US stock market pumped. But this seems to be a huge bull trap lie, as market confidence is extremely unstable.

1. From the perspective of the rise and fall, it looks really good. The Dow Jones Industrial Average pumped 1.64%, the S&P 500 Index pumped 1.11%, and the NASDAQ Index pumped 1.03%. If there is another day of such a pump, the accumulated market pessimism may be effectively released. But for now, it can only be defined as a 'one-day market,' and the other companies in the 'Big Seven' (Apple, Microsoft, Amazon, Meta) will release their financial reports. The short-term prospects of the market may depend on the performance of these companies. The financial reports of TSL and Alphabet this week have already caused a stir.

In addition, from a technical chart perspective, the Nasdaq Index is still below the 100-day moving average, while the S&P 500 Index is still below the middle Bollinger Band. Last night's pump only had "symbolic significance" rather than "substantive significance".
2. The price of gold has also rebounded, but like the US stocks, it can only be defined as a 'one-day trend'. The price of gold started to pump on Friday morning without any catalyzing news, indicating that this is a 'relief rebound', and the too long fall needs to be slowed down.

3. The real key lies in the US dollar index. If you can accurately predict the next move of the index, you can then predict the next direction of the global market. The logic is simple: if the US dollar pumps, it will put pressure on markets such as gold and US stocks, so the dumping this week will continue. Vice versa.

So, the closing on Friday is not very important, it's just a transitional day. For most investors, they are waiting for two big things:

First, the Fed will announce the Interest Rate decision next week, with a 'slight' possibility of a rate cut. Investors will follow closely to see if it signals a rate cut in September. If it does, it may be seen as 'slightly Favourable Information', but if it doesn't, it will be considered as 'significant bad news'.

Secondly, the US election has become unpredictable, and Harris's first week of campaigning has almost caught up with Trump's approval rating, especially in the battleground state of Pennsylvania where the support rate is evenly split between the two sides. As we have said before, the 'Trump deal' is a moving target.

The above two incidents are enough to trigger a global market reshuffle. Now, whoever can find certainty in uncertainty in advance, and be the first to predict the next direction of the US dollar when everyone is at a loss, will be the winner of this round of game.