Fed Rate Cut, Ultra Bullish? Yes But...

26 ส.ค.

Are we there yet?

Positive news, positive developments, a bullish market... The FED will cut rates soon, is this an ultra-bullish development for the stocks and Cryptocurrency market?

The market moves in cycles and grows with or without the FED.

In 2023 the FED was raising rates and the stocks and Cryptocurrency market experienced growth the entire year.

Long-term, cuts to the FED rates is super bullish but watch-out for the short-term.

Here is how it works:

👉 Since the FED is going to cut rates soon, traders and market participants take profits before/during the event. They capitalize on the fact that the general populace see this as a bullish development (thanks to the media which is already in a campaign to mislead everybody) and use it to sell at high prices. There is always a major crash/correction before the change in FED policies takes place.

I repeat, the financial markets tend to crash before/during the event.

So, instead of ultra-bullish, expect a major crash all across. After the crash, we will have bullish for sure.

Just remember, all the markets were growing when the rates were the highest; Bitcoin grew from November 2022 through March 2024; the stock market is at all-time highs and has been growing for years with interest rates at their highest.

When the cuts become real, this will be a major bearish event.

Just in case you are reading the news, because they are telling it in reverse.

Protect your capital. Stay safe.

Namaste.

4 ก.ย.

การซื้อขายยังคงดำเนินอยู่

The lower high has been confirmed.
The bearish bias has been strengthen.

The DXY has gone bullish.
Prepare for much, much lower.

Namaste.