The Dollar Reversal, Bitcoin 2017 Crash V Today, Hedge Fund Horror
Hey it’s Kieran! Another week in the markets is upon us, so here are the key events to be aware of, and the most interesting Macro research coming out of the investment banks. I’ll hopefully speak to you this week in the Traderseed Trading Challenges and as ever, if you have any questions, just leave me a comment below.
Weekly Watchlist
This week the US Thanksgiving holiday takes place on Thursday, so some markets will be on reduced hours on Thur & Fri, so make sure to check the market open hours in your MT4 mailbox tab.
The markets should present plenty of opportunities this week as thin liquidity leads to oversized and extended moves. This week the Fed will publish the minutes of it’s November meeting on Wednesday, The OECD will publish it’s latest forecasts for the global economy on Tuesday & PMI data from the Eurozone, the UK and the US on Wednesday may add to the volatility, so expect markets to move!
The Macro View
The Dollar Reversal — After the last few week of US Dollar weakness, we are now seeing a strong bounce. USD is king in the markets today, so Dollar index (DXY) repricing will lead to repricing in all USD denominated markets.
Consensus just flipped short USD. Right on time, just as the USD is bouncing back, “Speculative positioning in FX has gone all out long Euro in recent weeks. Overwhelming market consensus is that we’ve seen the low in EUR/USD”. Always remember that the crowd is usually wrong.
S&P500 and BTC correlation. Recently this divergence has broken due to the crypto meltdown. However, gaps between the two usually fill rapidly. Whether SP500 crashes lower or BTC chases up, this is one to watch.
Bitcoin 2017 crash v today. Bitcoin’s 2022 crash is looking similar to 2017. If the analogue is to track, we should see one more push slightly lower then the bottom could be in. “Buy when there’s blood in the streets” Baron Rothschild,18th-century
Hedge fund horror. Hedge Funds are in all sorts of trouble. Hedge Fund VIP stocks continue to crash hard and Hedge Fund “most shorted” stocks now ripping higher.
China Stocks — everybody’s buying. Exposure to Chinese equities has increased rapidly over the past few weeks. From uninvestible to FOMO.
Buying into the storm — China COVID. As if by magic, just as everyone is piling in long, China Covid positive tests have gone parabolic. Who could have known? :)
I hope you found this interesting and useful. As ever, I’m only an email away, so just reply to this mail if you have any feedback or questions.
Have a good week!
Kieran
www.traderseed.io
Want to trade the markets this week? 100k Programs starting from $75!! Check out the new programs here!
New to trading? Try crypto trading bots or copy trading
