As the world’s first and favorite inches closer to the roundest of psychological barriers many are expecting something big to happen. It is possible that we’ll see some sort of pullback at this monumental level as some short-term traders take their profits off the table. However, barring any change in the fundamentals or any sudden shift in what is clearly overwhelming sentiment, it is also possible that we’ll just blast through the $10,000 mark and never look back.
queue all the comments… “so what you’re saying is that it could go up or down?”
Yes! That’s exactly what I’m saying. In fact, it could also just go sideways for a while. Though I do know that many investors have been sitting on the sides for a while patiently waiting for a pullback, I’m not sure if they’re going to get it.
Markets can be tricky sometimes, crypto markets doubly so. That’s why it always pays to diversify your investment and only add marginal amounts on high-risk assets.
Market Overview
After some fairly flat movement in the global stocks, investors today will tune in to the incoming Fed boss as he is questioned by US Politicians.
Though he’s already been nominated by the President, the democratic process requires congressional approval before handing over the keys to the building that controls all money on our planet. Well, thank goodness for that.
Ever the busy bee, Jerome Powell has preempted this inquisition by releasing his own statement a day early. Let me summarize it for you…
“boring boring boring… stay the course… boring boring boring… slow and steady interest rate rises… boring boring boring… support the economy… boring boring.”
In short, we can expect a plain vanilla speech some of the Senators will try their hardest to get under the new boss’s skin and it will be interesting to see if struggles and how he composes himself under pressure. Of course, being a smooth operator is only part of this job. The real test will come once investors finally realize what economists have been screaming about for the past few years.
Carney’s Buffer
It’s always a pleasure listening to the governor of the Bank of England. The man could probably warn us of an upcoming apocalypse but with his gentle Canadian accent, it would probably sound like an angels hymn.
Today, he’s warning us of the possible outcome of a hard and disorderly Brexit on the country’s financial sector. Even though he expressly states that this is a remote possibility the BoE is taking the necessary precautions.
In a surprise move, banks in the UK are now required to hold an additional £6 Billion in order to absorb any sort of shock that may occur if May fails by March of 2019 to reach a deal with the EU.
The Pound is softening slightly this morning but that could just be due to the strengthening USD. What we need to look at is the financial stocks in the UK, which seem to have opened on a weak foot.
Cryptomania
Today’s crypto market is brought to you by Ether Classic, which is up 33% over the past 24 hours. After blasting through $22 a coin, the green crypto is now sitting at fresh record highs of nearly $30.
This move has happened on strong volume too with a total of $1.3 Billion worth changing hands, 65% of which is coming from crypto exchanges in South Korea.
