Investors must have an independent thinking attitude and can judge the current market situation based on economic data, such as whether the currency is tightening or easing, whether it is a cycle of raising or lowering interest rates. No one can correctly predict future economic conditions every time. However, we can adjust the cash position and shareholding ratio according to the current market situation. If you're interested in this kind of topic, there is a book that is worth reading, its name is "Profiting in Bull or Bear Markets".

The important economic indicators are listed below. The description of each indicator is based on the past rules of thumb. However, due to different macro environment or future changes, these rules of thumb may no longer apply. Please pay more attention.
US Dollar Index is calculated by the weighted geometric average of the exchange rate of the U.S. dollar against six major international currencies, and the strength of the U.S. dollar can be judged. When the U.S. dollar index rises, it usually represents an increase in the market’s risk aversion, and stocks and bonds will be sold for U.S. dollar preservation. On the contrary, if the US dollar index falls, it usually means that the market is optimistic and willing to invest money. The US dollar index can be one of the reference indicators to predict the future stock market rise and fall.
The FED'smission is to pursue maximum employment, stable prices, and moderate long-term interest rates in the U.S. economy. When the economy is good and the FED raises interest rates slowly, the stock market usually performs well; but if the FED is to control inflation or Suppressing an overheated economy and aggressive rate hikes are usually not good for the stock market at this time. On the contrary, if the FED announces interest rate cuts or QE in order to stimulate the economy, if it is a slow rate cut or QE, this is usually not good for the stock market. Until no further interest rate cuts, Or adopt aggressive rate cuts or QE at the outset, at which point the stock market may reverse quickly
It represents the risk-free interest rate, which will affect the cost of borrowing funds of the company and the valuation of the stock. When the yield rate is higher, it means that the investor can get a higher risk-free return, then the stock is relatively unattractive; Conversely, when the yield is lower, investors are more willing to put their money in the stock market
Often used as a leading indicator of a recession
It is generally believed that when the Consumer Price Index (CPI) exceeds 3%, it is considered a sign of inflationary danger. In order to stabilize prices, the Federal Reserve (Fed) would announce a schedule for reducing Quantitative Easing (QE) or raising interest rates. However, if the interest rate hikes are too aggressive, it is usually unfavorable for the stock market.
Eliminate energy and food that are more price-sensitive
Oil prices reflect the global economic situation, too low oil prices represent poor economic conditions, and too high oil prices will cause inflation and a possible economic recession. If oil prices can be maintained at a steady level of 50 to 70 US dollars, the economy will be relatively stable and is also good for stocks

When the increase of the Baltic Composite Index is greater than that of crude oil in the past period of time, the shipping stock price will usually rise accordingly; on the contrary, if the decline of the Baltic Sea Index is greater than the decline of crude oil, then the shipping stock will usually follow the decline
Leading Indicators of Prosperity
Lagging indicator, if the unemployment rate is high, the FED will start to use QE or interest rate cuts in order to pursue maximum employment. On the contrary, if the unemployment rate is low, the FED will start to use QE restrictions or interest rate increases.
Lagging indicator, usually when GDP is poor and the market has reached a relative low
Use the following two indicators to determine whether the stock market is entering shorts or longs in advance. Avoid being influenced by weight stocks and think that the market has not turned weak or strong: