EDGE OF THE CLIFF?

1 Sep 2020

Are we about to see Covacrash 2.0?

Friends, this chart here speaks a thousand words as to where we are in this "V Shaped Recovery", "Super V" whatever you want to call it. Doesn't matter what you call it, it is simply money printing and bond buying galore by the U.S. Federal Reserve and Donald J Trump. Be very cautious here going forward.

1 Sep 2020

Catatan

Had a great Question from @antidota: "do you think that spx will impact btc if it dumps?"

Im not a financial advisor, but I do make my entire living by trading. Here are my thoughts on this:

All markets move together now.Admittedly, BTC was actually developed with the help of Federal Reserve Funding. So, yes...I do believe that BTC will be impacted as well. However, the impact will be dictated by the bond market and the strength of the dollar. If bond yields jump up at the same time that the SPX and DJI dump, I expect to see BTC follow the major indexes. However, if bond yields dump along with the SPX and DJI, etc. I expect to see BTC and other cryptos;gold/silver,etc explode to new all time highs respectively.

Yields going down means that safety has been found in Bonds, and folks are buying bonds. Yields going up means that Bonds are not the safety asset in regard to a market dump from the SPX, DJI, etc.

********Bond Yields go UP, and Major Indexes go down at the same time = BTC, Gold, Silver, etc will go up while the market tanks.

********Bond Yields go DOWN, and Major Indexes go down at the same time = BTC, Gold, Silver, etc will go down with the Major Indexes.

1 Sep 2020

Catatan

Notice how Bond Yields tanked first, then the SPX and BTC fell together starting in February?

Bond Yields going down means that safety is being found in Bonds, and cash is leaving the stock market seeking protection. If safety is found in Bonds, than it wont be found in BTC at the same time.