FED slowing down balance sheet reduct,good new for marketMarket sentiment has been pessimistic over the past few days, with some expecting further declines while others anticipate a rebound. However, after scanning through online discussions, I was surprised that almost no one is talking about the most critical piece of information for April!
— Starting in April, the Federal Open Market Committee (FOMC) will reduce the monthly redemption cap on U.S. Treasury securities from $25 billion to $5 billion to slow down the decline in its securities holdings.!
If we look back at May 2024, the Fed made the same move, which led to a significant rally from May to July.
For those who remain bearish, it's crucial to have proper stop-loss strategies in place. After April 2, as long as technical indicators align, we should expect a strong rebound.