BlockBeats News, April 8th, according to The Kobeissi Letter analysis, last night the U.S. stock market experienced a significant short-term volatility due to the "tariff delay" fake news. The reason for the volatility can be attributed to technical indicator requirements and the market sentiment still being in the "buy the dip" mentality from a few years ago.
The analysis stated that investors in the past two years have been accustomed to buying stocks on dips. Both institutional investors and retail investors have done so. Even in March, as the market declined, capital continued to pour into the stock market. Now, if a trade agreement is announced, no one wants to "miss out" on the bottom.
However, the article reminds investors that if April 9th approaches and no trade agreement is reached between China and the U.S., market sentiment may once again collapse. Market sentiment is polarized, with panic reaching the level of March 2020, indicating that there will be more volatility in the future.
