Wishing everyone a good week, I won't be able to publish today due to it being the last day of the holiday, but I wanted to share a few brief thoughts about the market.
This week, there isn't a significant flow of data that will create extreme volatility in the markets. The most important development we should all focus on will be the US CPI data to be announced on Wednesday. A low inflation reading could justify Trump a bit more in front of Powell and continue the pressure for interest rate cuts on the Fed. This would naturally be a positive development for risky assets, acting almost like a fuel effect.
Another important topic will be the tariff negotiations between the US and China. This time the subject is rare earth elements. The US wants China to expedite the export of these elements and magnets because they are critical for defense, technology, and battery production. China, on the other hand, announced over the weekend that it has approved some export licenses; this means they are currently showing goodwill, but the tension is still there. If positive news comes from this topic, it could reflect positively on technology stocks, and consequently on Nasdaq and S&P500 as well. It’s worth keeping an eye on.
On the Bitcoin side, maintaining a position above $107,000 is crucial. If this region is preserved, we could see a move towards the $108,000 - $110,000 range. It would be quite normal to see some profit-taking at those levels.
Once again, I wish everyone a happy holiday and a wonderful week.
The first broadcast of the week has started, and I invite everyone to fresh gourmet information happening in the world and in crypto, as well as enjoyable conversation minutes.
For friends who haven't watched before or stopped watching on time, please dedicate 30 minutes of your time 3 days a week so you won't miss out on both global news and the agenda in the crypto world.
$BTC - The medium-term uptrend that started in April yesterday ended with a weak breakout. If it closes the day below the trend, we may see short-term pullbacks. While I do not expect a major decline, I have hedged my positions with a low-risk short with a stop at 109K.
Midas Crypto has been making waves in listings lately, which of the coins that will be listed tomorrow do you have in your portfolio/are you following?
The Fed purchased $43.6 billion in Treasury bonds last week without making any press release or creating major news.
On May 8, it acquired $8.8 billion worth of 30-year long-term bonds in a single day. Earlier in the week, it also made a purchase of $34.8 billion. The Fed has actually been quietly pumping money into the market.
So technically, we can call this covert monetary expansion. Why is this important for those of us trading in crypto and stock markets?
Because the Fed usually tightens by selling bonds. What it is doing now is the exact opposite, providing liquidity again by buying bonds from the system instead of withdrawing money.
Generally, such quiet moves can herald significant fluctuations. These types of monetary expansions raise questions like: Is the liquidity issue getting worse? Is there stress in the banking system?
Is there a lack of demand in the borrowing markets? When these questions start being asked, the instruments that will benefit the most are Gold, Bitcoin, and stock markets.