This week's focus in the financial markets is undoubtedly on the upcoming Jackson Hole Global Central Bank Annual Meeting on the 22nd, especially the speech by Fed Chair Powell. Currently, market expectations for a rate cut by the Fed in September are heating up, with some even betting on a possible 50 basis point cut. However, if these expectations are overly optimistic, Powell is likely to take measures to drop the market's expectations.

Fortunately, the recently released Producer Price Index ( PPI ) data has somewhat alleviated the market's excessive enthusiasm. Currently, the market generally expects a 25 basis point drop in September, but we must be soberly aware that there are still many uncertainties from now until the Fed's meeting on September 18, and market trends may experience fluctuations.

In this case, strict adherence to trading discipline becomes the only protection for investors. It is recommended that investors stick to technical analysis: lock in profits in a rising trend in a timely manner; patiently wait for a pullback confirmation in a downward trend; a true breakout requires withstanding the test of a pullback after the breakout.

It is noteworthy that the content and tone of Powell's speech will directly affect the market's expectations for future monetary policy. He may reiterate that the Fed will determine the direction of policy based on economic data, while also emphasizing that inflationary pressures still exist, in order to balance the market's overly optimistic expectations.

Overall, from now until the Fed's interest rate meeting in September, the market may experience a period of volatile trading. Investors need to remain vigilant and closely monitor economic data and policy signals in order to promptly adjust their investment strategies. Staying calm and rational is crucial during this uncertain period.