Let's kick things off with Bitcoin. It maintains its bullish momentum, cruising through the resistance zones almost thoughtlessly. On the downside, Ethereum seems to be stuck at a resistance, unable to push through.
Full disclosure: I did buy a little bit of Ethereum, anticipating a potential breakout. It's far from a guarantee, but it's a strategy that I have often capitalized on when prior support morphs into resistance.
Dollar Index and Foreign Exchange: The Downward Trend
Next, let's discuss the state of the dollar index — a collection of stocks pitted against the USD. The index is seemingly caught in a spiral, but a recent bottoming tail might indicate an imminent bounce-back.
This bounce-back is particularly notable for resistance areas that were previously broken through. For a moment, let's juxtapose the dollar index and the Euro. We see a near-inverse relationship in their trends, with a bearish engulfing candle forming on the Euro after a positive start.
Emergence of Strength in the Yen
Quickly shifting to the Dollar-Yen relationship, a recent surge in the Yen stands out. This is especially significant because a simultaneous rally in the dollar index is expected to spur a Dollar-Yen rally, indicating an undervalued Yen prior.
Gold: The Ever-Ascending Rocket
On to gold, the asset continues its steady ascendance, brushing against an all-time high.
For loyal followers, you'll know that my confidence in gold's potential has never wavered, and it's rewarding to see our bullish stance paying off.
Equity Markets: On Fire
With the equity markets, all sectors seem to enjoy positive margins, making it less about specific stocks and overall market trends. Market capitalization scales suggest value concentration primarily within the mega-cap and large-cap companies, with mid and small-cap trailing behind.
Note: This doesn't imply that the smaller companies have to catch up. Given the nature of their classification, it's expected that they may somewhat lag behind their larger counterparts.
To Wrap Up
While the information above covers the broad market landscape, everyone is interested in what it all means for their own portfolios. As traders, our goal should be to refine our focus and not stretch our capital too thin. This strategy allows us to capitalize on the most valuable opportunities.
I am currently monitoring RAMP, SMPL, and CZR as potential investments.
Thank you for joining me in this market recap. Remember, it's not just about knowing what's out there but understanding how to make the market work for you.
Until next time, happy trading.
Quick Note: Always remember — instead of getting caught up in the frenzy of the market, take the time to step away from your screens and enjoy your life. The market isn't going anywhere, but your time is irreplaceable.
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