20221102 Review and Prospect

Today's speech by the chairman of the Federal Reserve has become the key to the market trend. Several key points:

1. The interest rate hike will continue, and the peak value may exceed expectations;

2. The pace of rate hikes may slow;

3. The U.S. economy is strong, and a strong dollar may challenge some countries;

4. Inflation remains severe, don't expect a return to the 2% target in the short term.

The market responded with a rapid decline, which is a normal reaction. If pessimism spreads, it will end the rally, and the Nasdaq is likely to hit a new low. Therefore, it is a better choice to stay away from technology stocks in the near future.

Pay attention to balance positions, continue our previous strategy, use options to short technology stocks such as $meta$, $msft$, $googl&, hedge long stock options such as $cost$, $uber$, $tsla$, $spxl$ and cooperate with Bullish dollar ETFs.

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