Have you noticed that whenever Gamestop rallies, broader stock markets tumble?
That’s exactly what we saw happen yesterday. Of course, Gamestop made a leg higher on Wednesday, then on Thursday equities started to fall. The SPX was down -2.5% while the NASDAQ was also down -3.5%. Gamestop gave back some gains yesterday, but hedge funds are again feeling the heat.
Elsewhere, we also heard the news that the Federal Reserve computer system was down for a number of hours. Very interesting timing if you ask me. This is one to watch.
Meanwhile, it looks like the crypto markets will see another big red day on Friday. We are hearing numerous warnings that the central banks and worldwide Governments are wanting to crack down on Bitcoin and other cryptos. I’ve been saying for a while that we will likely be seeing regulation coming in sooner rather than later.
We are also starting to see US President Trump starting to reemerge this week. On Sunday he will be speaking at CPAC in what will be a must-watch event. I find it laughable that people think he would drift off into the night to play golf after all the evidence of election fraud. What’s coming next?
The Data Agenda
The data today will be very light, with not much coming out over the weekend. Keep watching Gamestop while the broader markets and cryptos could see some selling headed into the weekend.
Forex Signal Update
The FX Leaders Team finished with 2 wins from 3 trades as markets start to turn around.
Make sure you follow our live signals as volatility is on the rise to end the week.
Gold – Pending Signal
GOLD is interesting at the moment. It is lagging silver and struggling to hold $1800. That said I am bullish above that level.
Silver – Active Signal
The SILVER trade is one of my favourites currently. I am heavily long here. We also have an open long signal.
While the entire crypto space is looking very soft on Friday. We can see the Bitcoin is slipping under that $50,000 level and there is red across the board.
I am still expecting to see a massive correction in the entire market. We are already starting to see broad-based selling and I think it will only intensify. This weekend could be very interesting.