Morning review：
Dear friends, I am Don Adam Perera, and I am very happy to be with you all in this community, discussing the profound impact of non-farm employment data on the stock market and exploring new wealth opportunities together.
In our journey ahead, we will combine short-term and medium-term strategies to stay in tune with market dynamics, accurately seize opportunities, and achieve steady profits.
1.What is non-farm payroll data, and what impact does the published data have on the stock market?
2.How are the stocks in the investment portfolio performing, and how should they be optimized?
I will share content on these topics.
In the world of investing, politics leads the way, and economic data acts as a barometer for the stock market. By deeply analyzing these economic figures, we can better determine the direction of stock market trends. Especially today’s release of the non-farm employment data, which not only serves as a critical indicator of economic health but also becomes a significant reference for the Federal Reserve’s decisions on rate cuts, with far-reaching impacts.
Global investors are focused on this data, as it is crucial for assessing the future direction of the market. Now, let us delve into this non-farm employment data and explore the wealth stories behind the numbers.
Non-farm payroll data is one of the key economic indicators released monthly by the Department of Labor, specifically measuring changes in employment numbers outside the agricultural sector. By analyzing the non-farm data, we can gain deeper insights into the labor market and the overall economic condition.
The core contents of the non-farm data include:
1.Non-farm employment change: This is the primary indicator of the non-farm report, reflecting the number of new jobs created in industries other than agriculture over the past month. It provides us with a clear picture of business hiring activities and economic growth trends.
2.Unemployment rate: This is another important indicator in the non-farm report, representing the percentage of the labor force that is unemployed and actively seeking work. Changes in the unemployment rate can reflect the health of the labor market and directly affect market expectations and policy decisions.
Today’s released economic data show:
August’s seasonally adjusted non-farm employment increased by 142,000, slightly below the expected 160,000, but compared to the previous revised figure of 89,000, this increase marks the largest gain since June of this year.
The unemployment rate in August was recorded at 4.2%, meeting market expectations and showing a decrease from the previous rate of 4.3%, marking the first decline after four consecutive months of increases this year.
These figures are very important for the market. First, the increase in employment beyond the revised figures shows that the labor market’s resilience is strengthening, which supports the overall health of the economy. Meanwhile, the unemployment rate falling to 4.2%, meeting expectations, also injects some confidence into the market, indicating that improvements in employment conditions are gradually becoming apparent.
For the stock market, these data will lead to a positive emotional response. The improvement in the labor market and the decrease in the unemployment rate suggest a stabilization of the economic fundamentals, which will help boost investor confidence. Additionally, traders have increased their bets on the Federal Reserve potentially implementing a 50 basis point rate cut in September, thereby promoting a continued rebound trend in the stock market.
Now let us focus on the three major stock indexes: The Dow Jones Industrial Average, though it has recently experienced a brief pullback, still maintains a solid overall trend with prices staying above the trend line, remaining in an upward trend. We can see the resilience of the market and the support from buyer strength.
The Nasdaq index has also experienced a short-term pullback and is currently hovering near the yellow line. The overall trend remains healthy, and the market is now waiting for further confirmation of a strong support area. Once confirmed, we will see additional upward momentum.
The S&P 500 index, although currently near the white trend line following a brief pullback, still maintains a stable overall direction. Short-term fluctuations do not alter the long-term trend, and the market fundamentals still support a robust upward trajectory.
Overall, the short-term pullbacks in the three major indexes have provided the market with an opportunity to adjust, but the overall upward trend remains unchanged. It is important to pay attention to the direction of the trend’s movement.
In the current market context, the upcoming rate cuts by the Federal Reserve are undoubtedly a significant driving force. Coupled with the positive stimulus from the non-farm payroll data, the pace of the Fed’s rate cuts is expected to accelerate further. This will have a very positive impact on the entire investment market, laying a solid foundation for future investment opportunities.
Looking at the charts, the three major stock indexes still remain in a bullish trend, with market sentiment clearly becoming more optimistic. A comprehensive analysis of the current macro environment shows no overall issues. Market liquidity expectations are expected to improve further, and risk appetite will increase accordingly.
Next, we need to pay close attention to those technology sectors that have experienced significant declines recently, especially stocks related to artificial intelligence. After substantial adjustments, these stocks are now in a very attractive buying area. In the upcoming market rebound, technology stocks, particularly those in the AI sector, could lead a new round of rises.
Now let’s focus on the performance of stocks in the investment portfolio: After surging yesterday, TSLA is experiencing a normal pullback, retreating to the vicinity of the white trend line, confirming that yesterday’s breakout was valid. This kind of retracement is part of a healthy market trend, signifying short-term profit-taking and technical adjustments.
Currently, TSLA is rebounding again, and the overall direction of its trend remains positive. The current pullback not only poses no issues but also provides investors with a very good opportunity to buy or increase their positions. Such adjustments often mean that the market is gearing up, gathering strength for a subsequent rise.
Overall, TSLA’s adjustments do not affect its upward trend; rather, they provide a more solid buying opportunity for the market.
AAPL’s price overall maintains an upward trend, successfully standing above the white trend line, which is a critical short-term directional decision point. We need to patiently monitor the relationship between the price and the white line.
Once the price firmly stabilizes above the white line at $222.60 and continues to rebound, it will form a typical “flag pattern” consolidation. The establishment of this pattern will provide a strong bullish signal to the market. Once stabilization is confirmed, it will become an ideal buying opportunity, as well as an excellent position for a secondary surge.
Dear friends, in the current market environment, it is an excellent opportunity for us to earn exceptional profits! I encourage every member of our community to closely follow the content shared in our group, ensuring you can keep up with our operational plans and not miss any important opportunities.
This is also the original purpose of establishing our community: Through my daily in-depth interpretation and analysis of market information, economic data, and political direction, combined with the New World Quantitative 4.0 investment decision system, we can help everyone in the community achieve diversified asset allocation in stocks, options, bonds, gold, cryptocurrencies, and other areas.
Our goal is to help everyone achieve long-term wealth appreciation, reach personal financial goals, and safeguard the wealth growth and financial health of each member of our community.
In doing so, we can accumulate a vast amount of client resources for New World Asset Management, thereby expanding our asset management scale. At the same time, friends in our community, through their own successful investment cases, will become our most effective promoters and advocates, helping to enhance the market recognition and influence of New World Asset Management.
The grand vision of New World Asset Management is to enhance our social standing continuously, accumulate a wealth of client resources, expand our asset management scale, and eventually stand alongside global leaders in asset management like BlackRock, Vanguard Group, Morgan Stanley, and Fidelity Investments. Within the next three years, our goal is to successfully embark on the path to a NASDAQ listing!
Achieving this ambitious goal requires the collective effort of every friend in our community. Only by working together can we create a more brilliant future and ascend to the pinnacle of global asset management!
Dear friends, shortly I will summarize this week’s shared content and the stocks in our investment portfolio. I will also develop detailed stock trading strategies tailored to the current investment environment. I hope all friends will stay tuned for the community shares. See you later.
Closing commentary：
Dear friends, I am Don Adam Perera, and I’m delighted to be here with all of you in this community, having experienced this challenging “Black Friday” together. Faced with the panic-driven downturn in the stock market, we supported each other, faced the challenges together, and waited for the market to stabilize and rebound.
In these volatile times, our belief in moving forward has strengthened even more, trusting that the market will present new opportunities.
1.With the stock market experiencing a significant pullback, is this the time to buy or sell stocks?
2.How are stocks performing currently? Where is the support level?
3.Given the current market environment, how should we plan our operational strategies now?
I will be sharing content on these topics.
First, let’s focus on the three major indexes: After experiencing a pullback, the Dow Jones Industrial Average is about to touch the white support line below, and the overall direction of the trend remains solid and unchanged.
The Nasdaq index is currently showing relative weakness, having broken through the yellow trend line support. However, it is approaching a prior support line below, and it is necessary to further confirm whether this support position holds.
After a significant pullback, the S&P 500 index is nearing the yellow trend line, and the overall direction of its trend has not been impacted thus far.
In summary, the overall trend directions of the three major indexes remain positive, with no major issues. We can still maintain confidence in the market and wait for further market confirmation signals.
Today’s labor market report once again triggered concerns about economic cooling and the slow pace of Federal Reserve interventions, leading to significant pullbacks across all sectors. All major sectors within the S&P 500 experienced declines, with the most influential technology stocks taking the largest hit. This trend prompted short-term profit-takers to sell off, while some investors who had not profited exhibited panic selling.
However, I believe the market’s reaction today was somewhat overdone. Although the August employment report was weak, this does not mean the economy is heading into a recession. The unemployment rate met market expectations, and Federal Reserve officials today clearly stated that the time for rate cuts has arrived and they are open to more significant reductions.
Current market expectations for a Federal Reserve rate cut still exist, and the overall environment remains healthy. Therefore, in the face of this significant pullback in the stock market, I believe it has actually created a more suitable entry opportunity for us. The substantial pullback has accumulated strength for a future rebound, and this market adjustment is precisely the right time for us to seize new opportunities.
As the investment guru Warren Buffett has said, “Be greedy when others are fearful.” The deeper meaning of this saying is that when the market experiences a pullback, it is the perfect time for us to look for better buying opportunities. Opportunities are often born in downturns, while risks accumulate during continuous rises.
The current market volatility is not a reason for us to shrink back, but rather it creates a golden opportunity for us to seize potential gains.
Now let’s focus on individual stock performance:
Today’s TSLA movement was indeed visually striking. The big rise yesterday followed by today’s significant pullback might inevitably trigger some investors’ panic. However, looking at the overall trend, TSLA is still in an upward trend, and the short-term direction has not changed. Therefore, those holding can continue to hold patiently. For those who haven’t bought in yet, when the price pulls back to near the support line at $208, it still represents a good buying opportunity.
NVDA, although it has also pulled back in the short term, has returned to its previous support level at $101.30. Once this support is confirmed as valid, it remains a very ideal buying opportunity. I recommend that everyone patiently wait for confirmation of the support level, which will provide us with a more secure entry point.
NEM remains in an upward channel overall, and although there has been a short-term price pullback, we need to patiently watch the trend line support at the $49.00 level. Once stabilization is confirmed, it still represents a very good buying opportunity. Additionally, as NEM is part of the gold sector stocks, the tension and uncertainty in the Middle East and the expectation of Federal Reserve rate cuts will all act as catalysts for NEM to reach new highs.
AAPL’s overall trend continues to rise, with the current price nearing the white trend line. If it successfully rebounds and stabilizes at the $222.60 level, it means that a “flag pattern” will form, indicating that a new round of rebound is about to unfold.
After three previous attempts to find a bottom, CMG has gradually moved out of a volatile pattern. Currently, after briefly stabilizing, signs of a rebound are beginning to appear. The critical level now is $50.12; a successful breakthrough at this price indicates that a new round of rebound is about to unfold. We need to patiently monitor the relationship between the trend line and the price to seize the best entry opportunity.
As a cryptocurrency-related stock, MSTR has recently been affected by the volatile movements in the cryptocurrency market, showing a temporarily weak performance. However, MSTR’s price is approaching its previous strong support level at $112.7 once again. Once stabilization is confirmed, I believe this still represents a very good buying opportunity.
Especially with the upcoming Federal Reserve rate cuts and the presidential election, historical data suggest that these two events typically have a positive impact on the cryptocurrency market. Therefore, we can expect a rebound trend in cryptocurrencies, and stocks related to the cryptocurrency concept are likely to benefit as well.
Dear friends, today most stocks experienced significant pullbacks, and as a result, the market’s optimism has been severely impacted. Regarding the current performance of the stock market, my view is that ultimately, it is the earnings expectations and future growth potential of a company that determine its stock price rise. Currently, many friends are overly pessimistic about the potential for an economic recession.
For this reason, the more the market panics, the more I believe this downturn provides us with an excellent opportunity to add to our positions. Short-term fluctuations should not affect our assessment of a company’s long-term value. This is precisely the moment when we can seize opportunities in the market and position ourselves for the future.
Moreover, when sharing stock opportunities with everyone, I always advise buying in small positions. This is specifically to deal with the emergence of panic like we’re seeing now. By controlling our positions, we can retain enough capital for additional buying opportunities. Right now, we just need to patiently wait for the moment when market sentiment hits its lowest point, which will be our best opportunity to increase our positions. Once market sentiment recovers, we will be able to realize profits quickly. I hope everyone understands what I’m saying.
With the upcoming Federal Reserve rate cut, the overall investment market environment has not undergone any fundamental changes; the market trend remains healthy, with no substantial issues. Although we are confident about the future of the stock market, changes in trends will not happen immediately, nor will profits be realized right away. In the current investment environment, prices are bound to experience short-term severe fluctuations, especially when the stock market is in a state of panic. This phase is indeed the most agonizing and difficult.
However, it is precisely at times like these that holding stocks in the medium term requires stronger belief and more patience. We need to embrace value investing just like the investment guru Warren Buffett.
So, how should we operate in the current market environment?
1.Adjust your mindset: Don’t approach investing with a “get rich quick” attitude. Investing is a process that requires gradual progression. Understand that investing demands professional knowledge and the ability to manage effectively. Only with a stable mindset and rational decision-making can you establish a long-term presence in the market.
2.Study carefully and assess your type of trading: We need to determine, based on our actual circumstances, what type of trader we are. Are you a short-term trader, or do you trade on a medium-to-long-term basis? Different types of traders have distinctly different analysis cycles and trading strategies.
For example, short-term traders should decisively sell and promptly cut losses if a stock breaks down in the short term. However, long-term traders need to analyze from a longer-term perspective. If the trend is not broken and the stock price fluctuation is only short-term, it won’t affect their confidence in holding the stock or their future expectations. Short-term price fluctuations are just normal market movements for long-term investors and should not shake their resolve to hold stocks for the long term.
So, rest assured, since the establishment of New World Asset Management, we have always adhered to the principle of “client interests first” and “theory + practice is the best method to improve practical skills” as our teaching policy. Each of our sessions has a well-known rule: as long as our community members strictly follow our trading signals, if it results in a loss, we will take full responsibility. Moreover, we track market trends daily and develop detailed action plans to ensure that everyone has clear guidance and direction in every trading step.
Dear friends, the weekend is here! Let’s temporarily forget the troubles brought by the stock market pullback and fully enjoy the precious moments with family and friends.
Please remember, in the world of investing, you are never fighting alone. Next week, I will continue to face the market’s challenges with every member of our community, as we work together to find the path to financial freedom.
Have a great weekend, everyone.