Once another important corporate earnings report is released – especially Apple's earnings report, which will be released after trading on Tuesday, investors must fully face the Fed.
The Fed must also face the tumultuous financial markets, as investors are increasingly concerned about the wording used by Fed Chairman Bauer. On Wednesday, the investor will focus on a press conference after the Fed meeting.
Matt Maley, an analyst at Miller Tabak, warned that if the Fed's dove attitude changed, it could thwart the stock market profits. High-tech stocks have become another drawback.
Mali said the Fed would evaluate some encouraging data – such as the growth rate in the first quarter and the rally of the securities market caused by the central bank's policy change at the end of last year.
"Since the stock market has rebounded, the central bank may not be strongly biased towards doves," he said. "That doesn't mean the stock market will return as sharply as in the fourth quarter, but the market is actually technically overbought."
He said investors must look at the Chinese stock market. The People's Bank of China said it would not moderate its policy further, and the Chinese stock market thus fell by 5% over the last few trading days. Since the beginning of this year, the Shanghai Composite Index has grown by 23%, which is still the best stock market in the world in 2019, but some analysts said it has peaked in the Shanghai stock market.
The US stock market has recently risen sharply, and Mali said it did not believe that out-of-market investors were entering the market, causing the stock market to grow unexpectedly and become at risk. But he is still nervous about Wall Street's boom this year.
It is also more concerned about the strong performance of technology stocks. Especially for semiconductor supplies, although the news is not good, the stock price continues to grow. After a profit warning, Intel announced on Tuesday that its first quarter earnings fell 57%.
They were: "It's a little weird. Usually it's good when stocks react to bad news. But there are many companies that have negative talks over the next few quarters, making people watchful."
He advised investors to increase profits from some of the shares that have recently increased, to secure defensive stocks. He also pointed out that holding part of the cash can also prevent stock market turnover.
"The stock market can return to the market as it was at the end of December last year, but it also provided opportunities," he said, adding that the stock market may have a better chance of entering the market if it is 5% to 7%.