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Turnaround on the last trading day brings back positive scenario

This week initially looked like ending on a negative note, which fueled fears of a stronger correction. However, on the last trading day, the S&P 500 was able to defend its upward trend impressively and formed a striking “hammer candle”. This reinforces my positive primary scenario that the index will continue to rise towards 5,766 points. In the USA, the technology sector gained relative strength, as did the utilities and communication services sectors. In contrast, the previously strong Industrials and Materials sectors showed weakness. I plan to reinvest the liquidity freed up by stop-loss measures in my existing investments and in stocks that have remained particularly stable during the correction. Whether U.S.A. or Europe is irrelevant given the current small difference in relative strength.

After a sharp correction, the Nasdaq 100 has maintained its relative strength against the S&P 500 and the DAX, which continues to make it an attractive index for finding investment opportunities. However, caution is advised in these times, especially when selecting technology stocks. Although some appear visually cheap due to corrections, last week's events have shown that this can be a potential trap. Blue chips in the Nasdaq 100 saw declines of over 20% after their growth expectations were not met. On top of this, the information came to the market after the close, which greatly increases the risk of loss. Applying my selection criteria according to Mark Minervini is crucial (more on this: https://traderfox.com/use-cases/minervini/p-2414) TraderFox Thanks for the input! This method helps to separate the wheat from the chaff and invest in stocks that are visually more expensive but have clear upward trends.

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