Rate Of ReturnBuy oil, making money is that simple. Logic Investment Market Review 240331
Key points of this article:
𝒪 We will continue to hold crude oil which has hit new highs again
𝒪 US stocks hovering at highs, another opportunity to short?
◉ Asian markets - Hang Seng Index continues to fluctuate, Nikkei successfully defeats bears
In the past two weeks, we mentioned that the Hang Seng Index was in a state of neither rising nor falling, making it unsuitable for either long or short positions. This week's movement once again confirms this view.
As shown in the chart, the Hang Seng Index is surrounded by key levels both above and below, with no clearly stronger side.
Unless it's intraday scalping, there's no need to consider it.
After the Nikkei Index V-rebounded to new highs, it easily stabilized above resistance.
Although the long opportunity here isn't great, the trend is relatively strong and worth adding to the watchlist.
◉ US market - Nasdaq fell slightly for a week, is S&P becoming stronger?
This week, the Nasdaq fell slightly by 0.5%, while the S&P rose slightly by 0.27%.
Last week's market review also mentioned that the S&P's performance was stronger than the Nasdaq's, and this week is just a continuation of that trend.
As for shorting US stocks, I don't think it's time yet.
Currently, US stocks are still in a strong uptrend, with the Nasdaq's key bottom as low as 17,800 points, and at least two major supports above (see blue line).
The S&P is even more straightforward—you can only draw an upward trend line.
Meanwhile, the Russell 2000 Index reversed its false breakout pattern and hit new highs with a bullish candle.
The next entry point will potentially be at the resistance-turned-support level of 2,110 points.
US bonds have formed a small consolidation range, allowing for a buy-low-sell-high strategy.
Last week, we mentioned that TSM bottomed out, but on Monday, it gapped up and became untouchable. Unexpectedly, it returned to the support level this week, and the trend has weakened slightly.
Now, we'll wait for it to break below $134 before reconsidering.
Additionally, MSFT has also presented a buying opportunity.
◉ EUR/USD - Weak trend
Last week, we mentioned that EUR/USD might have some support, and now it barely shows some.
For now, I won't consider going long unless it forms a head-and-shoulders bottom pattern.
◉ USD/JPY - Stable consolidation
USD/JPY is consolidating at high levels.
We'll wait to see its performance after returning to the blue line before deciding whether to go long.
◉ Cryptocurrencies - Trend reversal
This week, Bitcoin and Ethereum showed an upward trend, but there aren't many daily-level entry points.
For now, only short-term trades are feasible.
◉ Gold - Breaks out again, remains bullish
Gold shook off last week's upper shadow and broke out with a large bullish candle.
Keep a close eye on its performance during the next pullback.
◉ Crude oil - Breakout after consolidation
Crude oil finished consolidating and broke out with a bullish candle on Friday.
To capture this movement, just remember the simple entry strategy of buying on pullbacks after a breakout.
As long as the trend continues, this trading strategy can offer a very high risk-reward ratio.
We'll continue holding until it reaches the previous high of $88.
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