Japan raises interest rates! How will U.S. stocks perform on Tuesday?
The Dow Jones Industrial Average reached a new high yesterday, and it’s likely that the S&P 500 and Nasdaq will also achieve new highs soon. However, even after hitting new highs, there may not be much further upside.
For example, during the night trading session, storage chip concept stocks experienced a sudden drop. I'm not sure if those who haven't entered the market yet managed to seize this low-buying opportunity.
Since I recommended storage chip concept stocks last week, their gains have been significant. So a short-term divergence and adjustment is also a normal occurrence.
Given the large rally so far, chasing high prices now carries certain risks, but the rebound trend likely isn’t over yet. At present, I still believe the rebound in storage chips will continue until the 24th.
If you’re holding positions, whether you do short-term trading (T+0) or just hold onto your shares is up to you. I believe everyone should be in profit at the moment, and those who got involved last week are seeing good returns.
SpaceX's surge yesterday was beyond expectations, breaking out with a large bullish candlestick. I’m not sure if any of you bought in at the end of the session, but if not, don’t chase the high today.
The space concept stocks’ main opportunity this week is still with SpaceX; the others are just following trends. If you’re holding such stocks, it’s best to realize gains during the rebound and I do not recommend participating otherwise.
The next buying opportunity for SpaceX is during a period of adjustment and divergence; unless there is a strong breakout like yesterday, only then should you consider buying at the end of the day. Otherwise, it’s better to stick to a low-buying strategy.
Overall, there is still room for the index to rebound, and individual stocks still have opportunities for rotational upside, but the core sectors and leading stocks will continue to be the main drivers of gains.
Once storage chip stocks start to diverge, it’s best to approach them with a choppy/trading mindset—focusing on buying on dips and not chasing highs. Storage chip concept stocks and SpaceX remain the top low-buying targets for this week.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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