- FTX, Alameda causing cryptocurrencies to plummet
- Equities are struggling to break resistance
- Meta is laying off 11,000 employees today
- CPI Data for October 2022 comes out tomorrow at 8:30AM
There is a substantial amount of volatility in all markets right now – as expected.
- I am sitting in cash positions on Binance except for Polkadot, Cosmos, Bitcoin, and Chainlink.
- I am sitting in 80% cash on my equities positions. 20% still in assets (still in profit).
- I am remaining in cash until the dust settles. I need the following answered before I buy again:
- What will CPI print tomorrow?
- What will Binance and the SEC do with FTX?
News of FTX insolvency has crypto markets plummeting.
Bitcoin / $BTC
Yesterday Bitcoin sat at ~$19k: I called for $BTC at $14k.
We’re currently sitting around $16k.
- Next target remains at $14k unless otherwise invalidated
- News of what will happen to FTX, Solana, and Binance over the next few days will determine where the Bitcoin bottom is this time around
- The market is clearly weeding out broken projects (Celsius, Voyager, Luna, and now FTX)
- Solana used to trade at ~$255
- It’s currently trading at $14
S&P 500 / $SPY
- Clear rejection of resistance
- SPY headed lower with crypto
- CPI print tomorrow will tell us more about which direction the market is headed
- Market strength and momentum is absent
Dollar Strength Index / $DXY
- Bear channels on the $DXY tell us a top is close or already reached
- Three peaks means strength is waning (typical double or triple top formation)
- The Fed is losing steam raising rates at 75bps each FOMC meeting
- They’ll continue to raise rates but should begin to taper off the amount they’re raising each meeting or else risk unemployment levels beyond what the US economy can sustain