Sell in Asian stocks and buy in European and American stocks
Yesterday, the Tokyo morning started with Asian stock selling and U.S. stock buying after New York, causing the forex market to look like a tug-of-war.
With FOMC looming, selling is likely in the scarcity-stricken Asian markets due to the spread of the Delta COVID-19 variant weighing on upside, while in the U.S. markets where earnings peaks are approaching, buying from good earnings is gathering momentum.
Global trends are not aligned, making it hard to see a clear direction to hold positions.
Typically at this time of year, short-term traders drive market fluctuations, forming a wide trading range.
Even with light trading, there is little pessimism about even a $1,000 drop in U.S. stocks.
My idiosyncratic phrase, “buy on the downside,” is a stance that applies to both the stock market and Bitcoin.
Movements in between are easily swayed, and judgments are technical.
The upcoming FOMC is around 3 a.m. Japan time on the 29th.
Today and tomorrow are likely to be movements oriented around watching the FOMC.
The focus in the market is on the change in Chairman Powell's statements following July’s CPI and the continued dot plot.
It is also worth noting whether concerns about the recent Delta variant expansion will be included in the statement.