Not something big happened during the Powell speech, but as I mentioned in the previous post, he pointed out COVID19.
So, we can wait for volatility but a little bit will going up near 108-109k, but be ready for the tricks from Market Makers.
Yeah, it's not a bullish signal, so we are continue waiting... waiting Unemployment rate. So lets speak really a little bit about it. Why a little bit - cause you can check the news and see that this year many companies are going to be closed in the US, and they are big as Walmart. It tells us that the Unemployment rate will be higher than 4.2. It's also not bullish signal also it's not good thing that many people will lose their jobs but we have to do what we do and it's very good signal for investors in crypto market especcially. So lets wait what will happen, and also check the previos post. There is much deeper info about economy and about PCE. Thank you 🙂
After making 20k from 2k in November and December I returned to the market 🙂 I know I'm not a whale.... yet 😉
I will write here for you my predictions to trade with time periods several days - 2 weeks.
I will write the prediction after the FED Powell speech, cause it's very important in such an economic situation.
But I can try to predict what he can say and what will happen.
The market is in the red, and tock market also experiencing decline and other many markets also. Why's it happening? UNCERTAINTY! WTF?
uncertainty shows economic situation right now and the next 1-2 months. Why so long? Cause the economic is driven by macro economic in the market. But what is market? It's people and businesses that they control.
So people and businesses planned their strategies to live, to be happy to vacation etc. And as you know for all of that needed time to happen and market will see it. How the market will see it? Macro ecnonomic indicators. It's cpi mom/yoy, core cpi yoy/mom, ppi yoy/mom, core ppi yoy/mom, core pce, pce, durable goods, consumer sentiment, and other many many things that you needed to know. So I will not write the values of that indicators but now I ill just say And it's not a belief it's fact
Powell will boost the market How? Via his words And he will mention that they see that there is a problem in the market - because of Bonds and Dollar And something interesting we will hear - he can mention 2010, 2017, 2021 when Bonds profitability is going high, and dollar going down, but by the classic economic teach us that the bonds selling pushes dollar up 😉
So FED have to do it something with that and here are several things that they can do - Print the dollars - RRP - Make companies buy bonds it's a bullish flag 😉 for whales So think as whale and you will become a whale
But also consider that the words will be said very carefully to not shake markets and not show some prediction, so, we wil need to wait until May 29 and 30, publication days of PCE, and the actual results will be better for as than forcasts 🙂
Tariffs are not good at all... if you don't know what it is. Lets go deeper and understand why we will see the Biggest Bull Run Ever. Yeah, the truth is that Global Economy will s*ck soon. Cause many businesses have established processes for their product and the Tariffs are going to ruin that... How? That's easy, one country wants to not lose the Market of his products and he has to understand how to not lose the Market.
If you remember many countries get 10% Tariffs, but major ones more than 10%. Read it again, it's a very crucial part to understand why every news channel is talking about uncertainty. Yeah, and they are right cause businesses now have to understand how to not lose the Market. And they will lose if they continue importing to the US with Tariffs. They will lose if they pay, they will lose if the importer will pay, cause in both cases the company will pay more or the people will not buy because of high prices.
So, the big players want to continue growing but how? All of them have to create new logistics ways to effectively and cheaper than from their own country to deliver the product to the target market. But what countries will choose? EXACTLY!!! COUNTRIES WITH LOW TARIFFS!!! And all big players will do it! THEY WILL DO IT!
And again why? Long story short for now - just because 😂 (No) Because they understand if big players go faster and stronger but other ones not, after some decades they will not have the ability to become stronger and more rich. So we will see an interesting 10, 20, 30 years. And remember, green energy will win.
What about BITCOIN? Oh, guys, we will come to it after 2-4 posts cause the global situation is really hard now but there is a catch 🙂
Why we don't have to think about rate cut and how econimic and our expectations are connected. First, I have to mention that economy is not a just a term that we are using to calculate only just numbers on our bank accounts. It has direct impact to our life and one part of it is investment. In investment we are expecting and waiting. Depends on how much time market participants have time to know about some crusial news and start creating their expectations. Many traders are thinking about economy not like a system but like something that has some buttons to transfer moneys from one place to another. So, we have simple logic which is if inflation so -> rate cut. And participants start expecting that and that expectation has its impact on the market. Simply prices can go down if not good expectations, and go up if good expectations. Thanks to people who understand some part of the economy system and hold their positions until really bad news, thanks to you the market exist. So, when I said about prices I meant prices of all things in every economy sector. Many times rate cut expectations make businesses to change their strategy according to situation, but unfortunately it can lead to financial strategy distruction.
WTF IS CPI, CORE CPI, PCE, IR, ER, UR, LFPR, NP, IP, FCI etc.
If you want articles about them and more, like and repost ❤️
I will open your eyes and you will understand how many indicators can impact the Crypto World and you will understand why. I'm planning to write more than 20 Long articles Good luck and vote 🙂