Opinion: Before the Federal Reserve FOMC, market risk appetite declines, and the resonance of options settlement and hedging amplifies volatility

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BlockBeats News, June 16 — Leveraged product researcher degentrading stated that before the Federal Reserve FOMC meeting, the current position is an area suitable for reducing positions — this short-term weakness is expected. After all, yesterday the market experienced a large-scale short covering rally, and as the FOMC builds hedging positions, it is normal for the market to show some softening.

From a longer-term perspective, this round of U.S. stock market correction may be the last opportunity to increase positions before the "FOMC, a hurdle full of uncertainty," and the market is expected to continue rising afterward, crossing this "wall of concern."

Due to the shorter trading week this week and the concentration of the FOMC and options expiration (OPX), market volatility is expected to increase.

Note: On Thursday at 2:00, the Federal Reserve FOMC will release the interest rate decision and economic outlook summary; at 2:30, Federal Reserve Chair Waller will hold a press conference on monetary policy. On Friday (June 19), due to Juneteenth, the New York Stock Exchange will be closed for the day.

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