My Friday Strategy: Managing the Nasdaq, Inflation, and Your Capital

Friday is often the most dangerous day in the stock market. Fund managers are closing out their positions. As a result, this creates completely unpredictable movements. Basically, we risk getting severely shaken up for all the wrong reasons. Let me explain my strategy to survive the end of this week. We are going to review inflation, oil, and especially a highly indecisive Nasdaq stuck at 24,500 points.

Absolute Caution and an Avalanche of Data

Why should you be extremely wary today? Frankly, a Friday is always risky. Over the weekend, anything can happen. An unexpected bad piece of news, for instance, and by Monday morning, the markets are in a sheer panic right at the opening bell.

On top of that, at exactly 1:30 PM, three major reports will be released in the United States. We are waiting for the employment figures and consumer sentiment. But above all, we are watching the PCE index. It is the most closely monitored measure of inflation. In fact, inflation is truly capturing all of the investors' attention right now.

The American central bank, the renowned Fed, is going to analyze this data closely. They will soon decide the future of interest rates. In my view, they will play it extremely safe given the current tensions. In short, we are absolutely not expecting any major rate cuts in the immediate future.

The State of the Markets in Three Points

1. Oil Without the Panic

Have you read everywhere that a barrel of oil has crossed the $100 mark? Actually, that is an exaggeration. The real current price is hovering around $95. Certain media outlets are using very distant future prices just to generate buzz. Do not fall into this little trap. We are very far from a catastrophe.

2. Bitcoin Takes a Break

Our friend Bitcoin is playing a real game of ping-pong. It is navigating safely between $69,000 and $72,000. It could technically climb toward $73,000 quite quickly. But for the moment, it remains wisely confined to its comfort zone.

3. The Great Nasdaq Pullback

My favorite index, the Nasdaq, has lost roughly 6.3% since its famous peaks around 26,400 points. In the past, we simply called this a healthy market breather. Currently, it is completely stagnating in the middle of nowhere, precisely around 24,500 points. By the way, the Dow Jones is suffering much faster from this consolidation.

The Ultimate Secret? Stay Invisible

In the stock market, it is exactly like being in the military. When they ask for a volunteer to go scout a minefield, you absolutely must not step up! You immediately put on your invisibility cloak. This is truly the key to lasting out there. You protect your capital well before your ego.

There is, moreover, a real subtlety to understand here. When the market hesitates this much, you do not take the lead. You courageously let the others take all the risks. If a very clear direction appears, then you quietly follow the trend. It is cowardly, but it works!

Conclusion

To sum it all up, this Friday demands an iron discipline. Forget the heroic bets and let others burn their wings. For my part, I am very light on positions and it is so relaxing. Frankly, if you have already locked in your gains this week, get some rest and turn off your screens!

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