EQUOS — Morning Update — November 5th

Yesterday, I mentioned getting clarity on this election would take several days if not weeks. Now, it seems like we’ll be getting clarity sooner rather than later. Biden is leading in electoral college votes, needing only 6 more to win. Trump is already starting legal procedures to recount votes in Wisconsin and Michigan and also to stop counting in other states — claiming that he’s being cheated out of a victory.

Either way, the election is tight, nerve-racking, and not over yet.

The S&P is up by more than 2.2%, at 3,443. The Nasdaq rose a full 4% on the session. Treasuries were also bought ‘en masse,’ pushing the 10-year yield back down to 0.77%. Gold retreated slightly, currently at $1,905. The dollar weakened against its peers. Asia stocks are set to follow American equities up.

In crypto, no need to wait for the market to open: We have been trading up non-stop. BTC is up, having reached$14,250 intraday, and is actually closing up just half a percent up from the previous session’s close.

ETH is coming in a bit stronger, back above $400, after a 3.6% rise. Most of the other alts are flat, though, looking at LINK, LTC, XTZ, DASH, ADA, DOT, etc. Others are slightly down on the day, such as XMR, XLM, BCH, and NEO.

In the spirit of the US elections, it’s worth noting that Bitcoiner Cynthia Lummis won a US senate seat, in the state of Wyoming — no surprise there.

Yesterday, we also saw an interesting transaction worth close to $1B, coming from the fourth largest Bitcoin wallet — which had not moved since 2015. Hackers had actually been trying to get into the wallet for years, but would now find it depleted. What will the owner do with all those bitcoins?

Back to trading and as a last information nugget, it’s interesting to see the leverage ratio on Binance hitting all-time highs. People are enthusiastic about prices going up, but that also comes at a cost of a high leverage, which may prove very painful should markets reverse or should some big player come in and smash it all down. Trade at your own risk.

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Justin d’Anethan

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