🖼 Daily Technical Picture 📈
➤ Positive day in equity markets and for once Nasdaq lagged in the advance against other major indices.
➤ There's lots of conjecture out there about the outperformance of the Nasdaq and for that matter Bitcoin over recent days during banking crisis. In my opinion, this was all directly related to the massive drop in yields in the Bond market. Lower rates generally benefits tech valuations (through their ability to borrow cheaply i.e a lower cost cost of capital). This risk-on mode also benefits Bitcoin. The high correlation between Tech and Nasdaq still hold.
➤ There is the argument that Bitcoin is now showing signs of "de-coupling" due it's "safe haven" status and being the anti-thesis of a de-basing fiat system. It may be true on the margin but in my view there is insufficient evidence.
➤ In terms of the overall price action today in equities, I am none the wiser to what happens next. Once again, the price was engulfed within the large Bullish bar on Thursday last week. VIX dropped marginally too but it is still elevated. Overall, it provides a slight bias towards the Bulls.
➤ Conclusion: I'm looking forward to less ambiguous price action. This may occur post Wednesday's Fed interest rate decision.
NOTES: 200-day Moving average back into the mix.
➤ Positive day in equity markets and for once Nasdaq lagged in the advance against other major indices.
➤ There's lots of conjecture out there about the outperformance of the Nasdaq and for that matter Bitcoin over recent days during banking crisis. In my opinion, this was all directly related to the massive drop in yields in the Bond market. Lower rates generally benefits tech valuations (through their ability to borrow cheaply i.e a lower cost cost of capital). This risk-on mode also benefits Bitcoin. The high correlation between Tech and Nasdaq still hold.
➤ There is the argument that Bitcoin is now showing signs of "de-coupling" due it's "safe haven" status and being the anti-thesis of a de-basing fiat system. It may be true on the margin but in my view there is insufficient evidence.
➤ In terms of the overall price action today in equities, I am none the wiser to what happens next. Once again, the price was engulfed within the large Bullish bar on Thursday last week. VIX dropped marginally too but it is still elevated. Overall, it provides a slight bias towards the Bulls.
➤ Conclusion: I'm looking forward to less ambiguous price action. This may occur post Wednesday's Fed interest rate decision.
NOTES: 200-day Moving average back into the mix.
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✅ Copy My Trades @ eToro, www.etoro.com/people/mrstocky
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✅ Copy My Trades @ eToro, www.etoro.com/people/mrstocky
✅ Verified Track Record 📈
Not Investment Advice