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[DataInsight] Why Hedge funds are preparing for a ‘BIG SHORT’ in the Stock Market

Three weeks ago, we stumbled upon a warning signal indicating the possibility of a market crash. As of today, I’ve observed a decline of approximately 4% from the $4600 level. This situation is causing considerable concern among investors, particularly those who are re-entering the stock market and relying on its upward momentum. Check out the video to learn how to use the Fear Barometer to predict the next Market correction.

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[VIDEO] DataInsight: Warning! Unexpected Signs that the Market is about to Crash

Looking the S&P 500 today, should I buy, hold, or sell off ?

Play Video

[VIDEO] DataInsight: Why Hedge Funds are preparing to ‘BIG SHORT’ the Stock Market [Market Correction]

Now, the decision of whether to hold or sell off isn’t straightforward, as effective portfolio management involves navigating the balance between risk and reward in the market. However, there are some significant misconceptions about the source of the issue today that you need to know. Contrary to the common belief that inflation is culprit of the market resistance, the market has a more complex issue. Or Put it this way…if you think that no inflation means the stock market continues to rally, and if inflation persists then the stock market tanks.

...Then I would say 'NO'

In my view, presently, stocks are relatively overpriced assets. Unlike the scenario in 2019, when Investors did not have alternatives other than participating in the stock market to gain high returns, today the landscape has changed. Nowadays, investors can discover opportunities that offer good returns with lower associated risks. 

This shift in dynamics has naturally led to decreased interest in participating in the stock market. Consequently, even with the moderate CPI and PPI reports from July—indicating a degree of inflation control—there hasn’t been a notably positive market response.

Play Video

[VIDEO] DataInsight: Why Hedge Funds are preparing for a ‘BIG SHORT’ the Stock Market [Market Correction]

In the episode, I will delve into a more comprehensive analysis of the potential repercussions of rising interest rates. So you will not be surprised to hear if Hedge Funds are preparing for a big short in the Stock Market. Instead of waiting for the Federal Reserve (FED) to halt its rate hikes, it might be prudent for investors to proactively devise strategies for the impending moment when the FED decides to decrease rates once again. We could be standing at a pivotal juncture, where shrewd investors could withdraw their investments from the stock market in search of safer and more lucrative assets.

FINAL WORDS

  • With the current yield environment, obligation like long-term Treasury notes is very lucrative.
  • The current bull in the Stock Market is a purely speculative move, betting A.I. Technology boosts the economy.
  • Nasdaq 100 has just crossed below 50 days of Moving Average.
  • Long pause of interest rate hikes (potentially rate is at its peak), might signal Hedge funds to prepare for big short in the Stock Market.
  • Many data and indicators show a Stock Market correction.
Please note that all the information contained in this newsletter is intended for illustration and educational purposes only. It does not constitute any financial advice/recommendation to buy/sell any investment products or services.

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About AlgoMerchant

AlgoMerchant is the first to empower stock investors with an artificial intelligent investing solution. We create intelligent trading algorithms by using our novel proprietary Machine Learning framework and BIG DATA processing capabilities. It employs quantitative models that utilize pattern recognition techniques to exploit market inefficiencies and generate non-correlated market returns, also known as ALPHA. The solution facilitates investors to manage their investment accounts like professionals, with no trading knowledge and complete simplicity. AlgoMerchant has a diverse team of traders, engineers and data scientists whose mission is to democratize data-driven and systematic investing. And now we are ready to serve every investors’ needs in their journey to trade.

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