Hi investors! Here’s your 5-minute overview of the crypto and stock markets. Remember that investing in the financial markets involves risk of loss. You should only invest the money that you can afford to lose. Make sure to calculate your risk tolerance before selecting the assets to invest in. Forex and crypto are especially high risk.
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Forex Market Overview
Brexit shenanigans continued on Monday and there is still a risk that the UK leaves the European Union without a deal at the end of October. On Monday’s we learned that China’s economic growth could fall below 6% in 2020. And the German economy may have contracted again in the third quarter.
On Tuesday we have Canada’s retail sales, and New Zealand’s trade balance to look forward to.
Taking a Closer Look at NZD/USD
Today I’m looking at the NZDUSD pair which appears to have bottomed out at the 0.62 support and has just pierced through the daily Ichimoku cloud.
Since the recent support is one of the longest-term and strongest support levels ever, there could be hope that the pair has in fact bottomed out. We still could see a pullback towards the 23% Fibonacci retracement level of 0.63 before further gains. Medium-term gains could reach as high as the 50% and 61% Fibonacci retracement levels of 0.64 and 0.65 respectively.
In my book, Ichimoku Secrets, I explain how this could be an interesting buying opportunity provided you’re willing to take the risk. For more on Ichimoku strategy development, don’t forget to grab the PDF version of my book, Ichimoku Secrets.
Crypto Market Overview
Following the coin’s drop around the end of September, Bitcoin had yet another stable week, with its price remaining in the low $8,000 range. While the somewhat slow recovery has disappointed some of the more active traders of the coin, it also suggests that the coin is becoming more predictable. Over time, this might result in Bitcoin experiencing less volatile price movements.
Elsewhere in the crypto world, Facebook announced its intentions to restructure its pending Libra project. Rather than going through the project as originally planned, the firm might issue individual coins, helping to respond to some of the criticisms coming from regulators. Facebook still has a lot of work to do—including making their plans much clearer—before Libra will be able to make it to the market.
Malta has continued its push to become a global leader in blockchain. The small Mediterranean nation, which already has plenty of industry-friendly policies, has seen a top university introduce a new blockchain master’s program. This move is part of a much larger effort to push blockchain and related topics into the academic space.
In the United States, the SEC decided to wait until next year to determine whether Telegram qualifies as a security. The status of this pending court case will impact which rules it will be regulated by. As of now, the case is scheduled for next February. In the meantime, we’ll keep an eye on the broader market. According to some optimistic speculators, Bitcoin may be near a new price bottom and may experience an upcoming rally.
Stock Market Overview
We are more than halfway through October, meaning that earning’s season is officially in full swing on Wall Street. With countless firms announcing their recent earnings, the market will likely experience much more up and down action than normal.
Thus far, earning’s season has given the market a modest bump. The S&P 500 is currently trading above the 3,000 point mark and may reach an all-time by the end of the month—assuming that all goes well. So far, three of the companies fueling this optimism include Johnson & Johnson, JPMorgan, and UnitedHealth Group.
On the more pessimistic side of the market, WeWork produced a valuation of less than $8 billion—far below the $47 billion value estimate projected in January. The disappointing news comes following the company’s struggle to control its management team and difficulties finding much-needed cash. Currently, the company’s hopes are being kept afloat by a cash infusion coming from SoftBank.
As October comes to a close, some notable traders have been suggesting traders “buy everything.” Stocks, bonds, and gold have all been on the rise—something that rarely occurs simultaneously. While these assets may lose some momentum in the near future, there will certainly be plenty of opportunities to turn a profit.
We will also pay close attention to how the final Brexit developments—which will likely play out by the end of the month—will affect American and other global markets. If it appears that capital will be able to circulate with ease, we can expect many markets to move in a bullish direction. That does it for this week’s most important stories. I’ll be sharing my personal investment strategies for forex, stocks, and cryptocurrency in Invest Diva’s Premium Investing Group, aka the PIG on Tuesday.
Last but not least, learn how to start, manage and grow your investment portfolio in all these financial markets (without being stuck to your screen all day) by attending my brand new Master Class.
Remember that as the 4th point of the IDDA technique, you must calculate your risk tolerance before deciding on the investment strategy that is suitable for your portfolio. Don’t forget to complete your risk management due-diligence before developing your investment strategy.