Category Archives: News

Bitcoin sinks below $50,000, Biden tax plans burden the Crypto Market.

The selloff came after reports that the Biden administration planned a raft of proposed changes to the US tax code.

Cryptocurrencies such as Bitcoin and Ethereum lost a huge amount of their value in today’s trading due to worries that US President Joe Biden’s tax plan will hurt asset investment. Bitcoin, the first and most popular, fell 5 per cent to $48,8867, falling below $50,000 for the first time in more than a month, while smaller rivals Ether and XRP lost around 7 per cent.

Biden administration officials have been reported to be planning a raft of tax code changes, including a plan that nearly doubles taxes on capital gains to 39.6% for people earning more than $1m.

The biggest cryptocurrency by market value, Bitcoin, fell 5% to $48,8867 in the past 24 hours, falling below the $50,000 mark for the first time in over two months.

Rivals Ether and XRP dropped around 7% as well.

Investing in stocks and risk assets, which have rallied on hopes of a strong economic recovery on the back of tax plans, has tinged markets, prompting investors to book profits.

Increases in investment gains taxes were reported to be on the way.

“Bitcoin headed south today after President Biden signalled that he wanted to raise capital gains tax in the US,” said Jeffrey Halley, senior market analyst, Asia Pacific, at OANDA.

He also stated, “Whether that happens or not, many bitcoin investors are probably sitting on some significant capital gains if they stuck with it over the last year”.

“I firmly believe that developed market regulation and/or taxation remain the crypto markets’ Achilles Heel,” he added.

Bitcoin is on track for a 15% loss on the week, though it is still up 65% since the start of the year.

Ether fell more than 10% on the day to as low as $2,107, just a day after reaching a new high of $2,645.97.

Although social media lit up with posts about the plan hurting cryptocurrencies, and individuals complained about losses, some traders and analysts said the declines were temporary.

“I don’t think Biden’s taxes plans will have a big impact on bitcoin,” said Ruud Feltkamp, CEO of automated crypto trading bot Cryptohopper. Another quote by him is: “Bitcoin has only gone up for a long time, it is only natural to see a consolidation. Traders are simply cashing in on winnings.”.

Another analyst noted that bitcoin’s prospects are still bright, but it will take some time before prices start rising again.

Shares of cryptocurrency exchange Coinbase also dropped around 4% to $282 in US pre-market trading, marking the lowest level since its listing earlier this month.

Bitcoin’s market cap had soared to $65,000 before falling 25% a few days later.

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S&P 500 flatlines while Dow and Nasdaq moderates

The Dow and the major U.S. indexes fell on Monday as the Dow technology stocks tumbled.

Major Wall Street leading indices closed lower at the close, with the Dow Jones Industrial Average (DIA) down 55.20 points, or 0.2%, at 33,745.40.

Losses were concentrated in communication services, information technology, and energy stocks. The broad S&P 500 Index (SPY) of large-cap stocks closed at 4,127.99.

The technology-focused Nasdaq Composite Index (QQQ) rose 0.5% to close at 13,900.19.

A measure of implied volatility known as the CBOE VIX (VXX) edged slightly higher on Monday. The so-called “investor fear index” reached an intraday high of 16.91 on a scale of 1-100, where 20 represents the historical average. It would eventually settle up 1.3% at 16.91.

In commodities, oil prices rose on Monday, with U.S. West Texas Intermediate futures gaining 45 cents, or 0.8%, to $59.77 a barrel on the New York Mercantile Exchange. Brent, the international futures contract, rose 40 cents or 0.6%, to $63.35 a barrel.

In precious metals, gold prices declined on Monday, as the June futures contract dipped $12.60, or 0.7%, to $1,732.20 a troy ounce on the Comex division of the New York Mercantile Exchange. Silver futures fell 48 cents, or 1.9%, to $24.85 a troy ounce.

Still, markets continue to be supported near all-time highs despite Monday’s modest pullback. Investors are pushing up share prices on optimism the U.S. economy is regaining momentum.

The CBOE VIX Volatility Index rose on Monday.

A slight increase in volatility was reported on the VIX index on Monday.

On Friday, the CBOE VIX (VXX) edged higher as the S&P 500 Index paused following a record-breaking rally.

In an intraday high, VIX, a Chicago Board Options Exchange volatility index, reached a level of 17.91 out of 100, where a 20 represents the historical average. VIX would ultimately fall 1.3% to 16.91.

In stocks, the large-cap S&P 500 Index (SPY) flat-lined on Monday.

iPath S&P 500 VIX Short Term Futures ETN: (NYSEARCA: VXX) Designed to offer exposure to the S&P 500 VIX Short Term Futures Index Total Return. The Index uses CBOE Volatility Index futures by way of a long position in the first and second-month VIX Futures contracts. VXX declined 1.5%.

ProShares Short VIX Short-Term Futures (SVXY) to track the S&P 500 VIX Short Term Futures Index’s inverse daily performance. SVXY advanced 0.9%.

ProShares UltraShort Term VIX Futures: UVXY expects to return 1.5X (leveraged) the S&P 500 VIX Futures Index today. Those are the two months of the UVX futures contract. UVX dropped 1.7%.

It is said that the U.S. economy is slowly starting to recover from the COVID-19 pandemic. Over the past week, more than 31 million people have fallen ill with the disease.

MONDAY, APRIL 12th Markets Review

With the S&P 500 ending Friday’s session at a new all-time high and near the high of the day and the week, the U.S. stock market closed out the third week of gains on a high note last week. The tech sector led the move even though the NASDAQ continues to lag behind the broader market. Both the Dow Jones Industrial Average and the Transports moved past new all-time highs. Expectations for robust earnings in Q1 drove the markets; however, some suggest that The Q1 earnings are already priced.

As Earnings season starts this week, about 3.0% Of the S&P 500 companies have reported calendar Q1 earnings, and the results have exceeded expectations. Answering the question is whether or not this trend will continue and by what margin. S&P 500 companies that fail to impress could cause the market to correct. Global economies are still being affected by COVID, so there is no certainty, which does not bode well for the stock market.

European stocks slip from record highs ahead of earnings season.

As investors booked profits ahead of the semi-annual earnings season, European and French stocks fell from all-time highs. At the same time, a merger between two French monopolies rose following months of wrangling.

After the two waste management companies agreed to a merger deal worth nearly 13 billion euros ($15.4 billion), Veolia and Suez shares soared 9.7% and 7.7%, respectively.

Technology, travel and leisure stocks, and commodity stocks led to declines for the benchmark pan-European STOXX 600 index, which closed 0.5% below Friday’s record high Friday.

A closer look at upcoming economic data and first-quarter results could justify Wall Street’s sky-high valuations. [MKTS/GLOB]

Analysts expect Europe’s first-quarter earnings to jump 47.4%, according to Refinitiv IBES data. Consumer cyclical and industrial firms are likely to provide a significant percentage of support.

Earnings and economic data will be in focus as Wall Street opens lower

The S&P 500 and the Dow retreated from record levels, while earnings and data were emphasised.

By Reuters

In the wake of a critical inflation report this week, Wall Street main indexes dropped on Monday, with the S&P and Dow both retreating from record levels.

At the open, the Dow Jones Industrial Average dropped 25.54, or 0.08%, to 33,775.06. While the Nasdaq Composite started lower by 45.75 points, or 0.33%, to 13,854.44, the S&P 500 opened lower by 4.09 points, or 0.10%.

The S&P500 and Nasdaq surged while the Dow Jones staggered.

The S&P 500 and Nasdaq surged on Wednesday while the Dow Jones staggered.
The Dow staggered the broader U.S. stock market on Wednesday, as sinking energy and financials shares weighed on the benchmark index.
Wall Street’s leading indices closed mixed, with the Dow Jones Industrial Average (DIA) declining 85.41 points, or 0.3%, to 32,981.55.
The broad S&P 500 Index (SPY) of large-cap stocks gained 0.4% to close at 3,973.33. Five of the 11 primary sectors ended in the negative area, with information technology climbing 1.5%. Consumer discretionary shares rose 0.8% as a collective.
Meantime, the technology-focused Nasdaq Composite Index (QQQ) advanced 1.5% to settle at 13,246.87.
A measure of indicated volatility recognised as the CBOE VIX (VXX) fell on Wednesday, reversing some of its early-week gains. The so-called “market fear index” moved an intraday low of 18.85 on a scale of 1-100, where 20 outlines the past average. It would ultimately settle down 1.6% at 19.30.
In commodities, oil prices settled on Wednesday, with U.S. West Texas Intermediate futures tumbling $1.21, or 2%, to $59.34 a barrel on the New York Mercantile Exchange. Brent, the international futures contract, fell 60 cents or 0.9% to $63.54 a barrel.
In precious metals, gold prices bounced sharply on Wednesday, as the June futures contract rose $21.40, or 1.3%, to $1,707.40 a troy ounce on the Comex division of the New York Mercantile Exchange. Silver futures climbed 30 cents, or 1.3%, to $24.44 a troy ounce.
The conclusion: U.S. stocks resume to trade near record highs, encouraged by optimism that the economy is healing from the Covid-19 pandemic. More than 30.4 million Covid cases have been listed in the United States, though the infection pace continues to decline from earlier levels.

Gold Broken Position 1719 Continues Downward 3.30

Gold Market Trend Analysis
  Gold finally broke down after continuous shocks, and it broke the resistance point after falling below the 1719 position, ending the shocking situation and starting a downward trend! 1719 did not break or stand, break the position and turn down. I have repeatedly emphasised the importance of this position. The so-called horizontal is how long and how high is vertical. Gold maintains volatility for more than two weeks. Once broken, it is a waterfall-like trend. Break the position to continue the falling market, follow the trend decisively!

  Previously, gold remained within the range of shocks, long and short, but since yesterday’s break of 1719, the market trend has changed, and you shouldn’t use old strategies to treat the current new trend. It is necessary to adjust the thinking in time and follow the trend! Today is a broken position and chooses to fall, rebound and take advantage of the trend, and the subsequent support position is the 1690 line!

  Gold, which has been volatile for many days, broke out of the US market yesterday. The long-awaited trend signal has appeared. The daily line closed overcast and fell below the support of 1719 in the daily bar. The daily 5-day moving average and 10-day moving average continued to increase in volume. Gold enters a downward mode, so next week, gold will focus on 1719 and 1725 suppression, focusing on the daily mid-track 1725 as the suppression and taking advantage of the trend to fall back. The lower target is 1700/1690.

  In today’s operation, we still focus on the high-altitude rebound. Today, gold focuses on the 1719 suppression position. After the previous support broke, the precious metal formed a resistance. Besides, the resistance position of the first rebound after yesterday’s sharp drop is also below this. The daytime relying on 1719 to suppress the rebound continues. Short, there is still a certain amount of support at the 1700 integer mark. It was also the last time that the callback was supported. However, the short-term support is challenging to change the impact of the short-term decline. It is expected that the short-term adjustment will continue to fall! Empty, the rebound below 1719 continues to be open!

  European operation idea: gold near 1715 is negative, stop loss is 1720, the target is near 1700; if the rebound is unable to continue under pressure, stop loss is at 1715, and the position is directly negative near 1708, the target is broken at 1700, and the broken 1700 rebounds by 3 dollars to continue With nothing!

USD Rises Following Biden’s New Infrastructure Plan

With the new infrastructure plan coming, the US dollar breaks through this year’s new high. Biden to expose $2 trillion, 8-year infrastructure plan

  Federal Reserve Vice Chairman Quarles said on Tuesday that a group of financial regulators would make recommendations in July to increase the resilience of money market funds and reduce the probability of receiving government aid in the future. The group will focus on money market funds and short-term funds—the relationship between markets. Besides, he also stated that investors should believe the Fed’s statement on the current inflation target, allowing inflation to be slightly higher than 2%.

  The IMF will release its global economic outlook report next Tuesday, which will raise its global GDP forecasts for this year and next. In January, it was expected to grow by 5.5% and 4.2%, respectively. The IMF warned that the outlook for the epidemic is uncertain. A small number of countries headed by China and the United States can exceed the GDP by the end of this year, while other countries’ recovery is “dangerously divided.” After the US fiscal stimulus, inflation may reach 2.5%, “but that is not a concern.”

  Some representatives of the Organization of the Petroleum Exporting Countries (OPEC) said that after Saudi Arabia expressed that the figure was too high, the OPEC+ technical expert group agreed to lower the oil demand forecast for 2021. They also stated that OPEC+ will still avoid a substantial increase in crude oil production when it meets on April 1.

  According to satellite news, the Saudi side has promised to continue to reduce production voluntarily. The Saudi side has contacted some OPEC countries, most of which hope to extend the (production reduction) agreement to May. However, the Kremlin stated that Russian President Putin currently has no plans to hold talks with Saudi Arabia on OPEC+. OPEC data shows that if the production cut is extended, the inventory in May will be reduced by 2.9 million barrels per day. OPEC expects that the oil reserve surplus will be exhausted before the end of the second quarter. The oil inventory surplus will fall to 3 million barrels at the end of the second quarter.

  The White House will probably announce a $ 2.25 trillion infrastructure investment plan on Wednesday; The Washington Post, citing two people familiar with the matter, reported that Biden would announce a $2.25 trillion infrastructure and employment support package Pittsburgh on Wednesday. The package includes approximately US$650 billion to rebuild roads, bridges, highways and ports, about US$400 billion to care for the elderly and the disabled, US$300 billion to housing infrastructure, and US$300 billion to revitalise the manufacturing Industry. In addition to the $2.25 trillion plan, the White House will also launch an approximately $400 billion clean energy loan program. Other investments include hundreds of billions of dollars for power grids, national high-speed broadband and clean drinking water. The White House will issue a second set of drafts within a few weeks, including the expansion of medical insurance and child tax deductions. The combined size of all bills may exceed 4 trillion U.S. dollars.

  Yumi Shinohara, deputy manager of the fleet management department of Zhengrong Steamship, the owner of the container ship “Nagachi”, said that the company had not received any claims or litigation regarding the blockage of the Suez Canal.

  Yields on 10-year U.S. Treasury bonds gave up most of their gains after hitting a 14-month high. The Dow fell more than a hundred points, the pan-European stock index approached its historical high set 13 months ago, and German stocks reached a new high. The U.S. dollar hit a new high in more than four months, and Bitcoin rose above 59,000 U.S. dollars in intraday trading, setting a new high in more than a week. Gold fell below US$1,700 and approached an 11-month low, silver hit a three-month low, London copper hit a new low for more than five weeks, and crude oil ended two consecutive rises and fell to more than one-week highs.

 

The CBOE VIX Volatility Index decreased on Wednesday.

The CBOE VIX (VXX) verged lower on Wednesday as U.S. equity markets extended their relief rally.

The Chicago Board Options Exchange Volatility Index, commonly identified as the VIX, reached an intraday low of 21.68 on a scale of 1-100, where 20 represents the historical average. It would eventually settle down 7.7% at 21.34.

In stocks, the large-cap S&P 500 Index (SPY) rose 1.1% on Wednesday.

iPath S&P 500 VIX Short Term Futures ETN: (NYSEARCA: VXX) This ETN gives investors exposure to the Total Return from the S&P 500 VIX Index. The VIX Index utilises CBOE Volatility Index futures by way of long positions in both first and second-month VIX Futures contracts. VXX declined by 4%.

ProShares Short VIX Short-Term Futures (SVXY) to track the S&P 500 VIX Short Term Futures Index’s inverse daily performance. SVXY advanced 1.9%.

ProShares UltraShort Term VIX Futures: (UVXY) UVXY gives 1.5X (leveraged) returns of the day’s moves in the S&P 500 VIX Short Term Futures Index. It tacks the two front months of the futures contract. UVX declined by 5.8%.