April 10 Data Night: A Delicate Balance on the Eve of Market Turmoil

The market has shown a slight recovery, seemingly harboring hope, but it may just be a moment of calm before the storm.

At 20:30 on April 10, the U.S. will unveil the March CPI month-on-month and year-on-year rates, as well as initial unemployment claims. This series of data is undoubtedly a "bombshell" in the market. Especially the CPI data, which is closely linked to expectations for Fed rate hikes; any small fluctuation could trigger a chain reaction in global markets.

If the March CPI data exceeds expectations, inflationary pressures will further intensify, and the Fed is likely to choose to raise interest rates again. Rate hikes mean an increase in the cost of funds, making corporate financing more difficult, and hot money in the stock market may quickly withdraw, leading to a plummet in stock prices, putting the assets of fully invested individuals at significant risk of substantial loss.

Initial unemployment claims are viewed as a "barometer" of the U.S. labor market. A sharp increase in this data would signify a severe employment market situation, a wave of layoffs from companies, economic downturns, and a decline in consumer purchasing power, subsequently triggering declines in asset prices such as stocks and bonds in the financial markets, as people tend to prefer holding cash to cope with uncertainty.

Currently, many investors are misled by the market's slight rebound, fantasizing about the arrival of a bull market, even going so far as to invest all their funds, which is extremely dangerous behavior. At this critical moment, we should remain calm and treat our "wallets" cautiously.

It is advisable for investors to appropriately reduce their positions at high levels to lock in profits and avoid greed. Meanwhile, set stop-loss and take-profit points to add an "insurance lock" to your investments, preventing significant losses due to major market fluctuations.

The "storm" in the market on April 10 is about to arrive; we must remain vigilant, travel light, and respond to potential challenges with a stable mindset and strategy, collectively looking forward to smoothly navigating this turbulent period.

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