EQUOS — Morning Update — November 23rd

Last Friday we saw equities continue their weekly decline as politicians in the US still quibble over emergency lending programs. Beyond that, though, things look positive with regards to a vaccine, hopefully to be distributed by mid-December at a small scale and then, later, in 2021.

In Asia, stocks look set for a cautious start with global equities just inches away from their all-time high (formed just earlier this month). Copper futures, a chart I like to look at to gauge the health of the economy is looking up and also a flicker away from all-time high. It’s worth noting that Japan is closed for a holiday and so treasuries will only trade at the London open.

In the crypto space, the markets that never sleep, BTC and alts both gave us things to talk about.

BTC, after reaching new multi-year highs of $18,965, dropped about 7% lower to $17,600 only to massively rally — still closing in the red, though — currently at $18,460. For any chartist out there, the long bottom wick definitely looks very bullish, but it’s still interesting to see a red candle right after (another) doji candle.

Alts are what people want to talk about, though. And that fact in itself is interesting. They’ve been underperforming for what feels like forever yet, this weekend, everyone was talking about them. ETH, breaking resistance, DOT resolving a bullish RSI divergence, XRP, breaking through a range, XLM, XTZ, NEO following on. We saw moves averaging between 10% to 20%+over the weekend.

The BTC Dominance Index fell decidedly, now at 64.6, as opposed to pre-weekend level, at around 68.

Looking at another indicator, I like to look at the ‘Fear and Greed’ Index. While I’m as bullish as anybody here in the long-run, I always think that for short-term traders, caution and a smidgeon of contrarian bias can be useful. The index is now at 94 (with the ATH at 95). Things tend to swing one way and then the other.

Lastly, to finish on more fundamental news, there’s been a flurry of updates from banks on Bitcoin. I find it ironic on many levels, both because of the time it took, and also the timing now (as we’re already so close to all-time high), and their previous stance and the disruption cryptocurrencies can, do, and will bring to the financial space. Do check out comments by JP Morgan, but, just this week, we also heard from SkyBridge Capital, Grayscale passing $10B in AUM, and BlackRock’s CIO saying BTC could replace gold and Deutsche Bank echoing the comments.

Strap in and hold onto your hats!

Passionate about financial markets, long-term investments, the occasional short-term trade and disruptive technologies.