U.S. stocks plummeted 900 points to meet this week's rate hike meeting! Has a recession already arrived？
As of the close of trading on June 13, U.S. stocks have closed lower for four consecutive trading days. The $Nasdaq Composite Index(.IXIC.US$ , which is dominated by technology stocks has fallen more than 10% this month, $S&P 500 Index(.SPX.US$decline of 9.26%; In the face of extreme market panic, the $CBOE Volatility S&P 500 Index(.VIX.US$ has risen as much as 29.9% this month.
In Federal Reserve's June meeting, the Fed annouced to raise interest rates by 75 basis points. Also, in June, the University of Michigan survey showed that consumer expectations for long-term inflation rose to 3.3%, the highest since 2008. Under inflationary pressure, Powell hinted that there is still a possibility of raising interest rates by 75bp in July, but also stressed that such rate hikes are difficult to sustain and will not become the norm.
source: https://reurl.cc/OAgr9y
$E-mini NASDAQ 100 Futures(JUN4)(NQmain.US$
source: https://reurl.cc/OAgr9y
$E-mini NASDAQ 100 Futures(JUN4)(NQmain.US$
The Fed has hiked interest rates and reduced its balanced sheet in an inflationary environment, and more investors turn to risk-averse investments. With such a sharp correction in the US stock market, how should ordinary investors deal with it? The following are some common investment strategies.
If you are bullish on and hold a stock for a long time, you are likely to suffer a significant short-term retracement of profits due to the general decline brought about by such a crisis.
However, if you use stock options well to hedge your positions in the underlying stock, you can keep your gains in such a market. As we say, "we have to use more than one way to achieve goals".
*The top three contracts in the Futu's volume ranking of US options on13th-June. You can check it via “Quotes - Markets - Options - Ranking".
According to Citi's analysis, the earnings of traditional defensive stocks such as utilities, consumer staples, real estate, communications services, and health care are now "less sensitive to economic activities". Such stocks are more attractive to investors worried about a recession. In the S&P 500 sectors, in addition to the energy sector soaring, utilities and consumer discretionary sectors have outperformed the market this year.
$Utilities Select Sector SPDR Fund(XLU.US$
$Utilities Select Sector SPDR Fund(XLU.US$
Since the Fed started to hike interest rates and reduce its balanced sheet, the market's bearish sentiment has dominated. In this case, inverse ETFs may help you profit from the declining market.
However, such ETFs are not suitable as long-term investments and can only be used for short-term hedging or speculative motives. The expense ratio of such specialized funds is high, which may affect the total returns.
1) Short selling the S&P 500
$Short S&P 500 Proshares(SH.US$ ：When the S&P 500 falls 1%, SH rises 1%
$Proshares Ultrashort S&P500(SDS.US$ ：When the S&P 500 fell 1%, the SDS rose 2%
2) Short selling the Nasdaq
$ProShares Short QQQ(PSQ.US$ ：When the Nasdaq fell 1%, the PSQ rose 1%
$ProShares UltraShort QQQ(QID.US$ ：When the Nasdaq fell 1%, the QID rose 2%
3) Short selling the Dow Jones
$Proshares Short Dow30(DOG.US$ ：When the Dow falls 1%, DOG rises 1%
$ProShares UltraShort Dow30(DXD.US$ ：When the Dow falls 1%, the DXD rises 2%
Market falling often leads to panic selling. The VIX traces investors' sentiments based on positions in the options market. In addition, index futures on the three major US stock indexes are open for 24-hour trading and reflect market sentiment around the opening of the US stock market. Add indexes to the watchlist to track movements in stock market indexes.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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whqqq : thanks for your information
Mob-Town-Bulls : It's been in a
market 
To the MooOP Mob-Town-Bulls: We gotta be patient during bear market!
To the MooOP whqqq: No problem!