The following article is sourced from: Hong Kong Soros (pseudonym)

Edited by: Well Link International Securities

Market Overview

Technical: The S&P 500 (SPX) outperformed the Nasdaq 100 (NDX) last week, with both indices closing strongly on Friday due to easing 

recession fears and an increased likelihood of a 50-basis-point rate cut in the upcoming Federal Reserve meeting. SPX is on track to

 challenge its all-time high (ATH) in the coming week, ahead of the FOMC meeting and the U.S. presidential elections.‍Sentiment: Market sentiment has shifted from fear to neutral.

Market Breadth: Market breadth has strengthened, improving from neutral to strong.

Macro: The possibility of a 50-basis-point rate cut at the upcoming FOMC meeting has relieved investors' concerns about a recession. 

Despite inflation data coming in slightly above expectations, investors believe the Fed's actions could prevent a recession, as financial market wealth plays a significant role in supporting U.S. consumer spending.

Summary : 

Without the overhang of recession fears, the market is expected to remain strong. However, volatility could increase as key economic 

data is released and the U.S. presidential elections approach. From a risk-reward perspective, it may be prudent to take profits during 

rallies or sell in anticipation of the Fed's rate cut. Overall, given the Fed's support, the prevailing strategy could be to buy the dip and avoid betting against the Fed.

Stocks:

SVXY: Consider taking profits if the rally continues into the Fed rate meeting.Risk-on Pair Trades:Long SOXL / Short TQQQ: Lower interest 

rates could further boost AI infrastructure investments.Long ARKK / Short IWM: In a downtrend for interest rates without a recession, small-cap tech growth is likely to outperform general small-cap stocks.