Today, the market has hit yet new highs.
The benchmark S&P 500 Index, up 22.7% so far this year, is on track to rise for a fifth week in a row while Nasdaq is eyeing its sixth straight week of gains. The Dow Jones Average that spiked 150 points yearly has its 2019 gains climbing to 18%.
Stock Market up big today. A New Record. Enjoy!
— Donald J. Trump (@realDonaldTrump) November 7, 2019
These gains came on the back of the comments from senior officials in Beijing, suggesting that the US and China will cancel planned tariffs on each other’s billions worth of goods in stages, as part of the first trade pact between the world’s two biggest economies that is due to be signed in the next few weeks.
“In the past two weeks, the lead negotiators from both sides have had serious and constructive discussions on resolving various core concerns appropriately,”
Ministry of Commerce spokesman Gao Feng told reporters in Beijing.
“Both sides have agreed to cancel additional tariffs in different phases, as both sides make progress in their negotiations,”
— YUAN TALKS (@YuanTalks) November 7, 2019
However, strategists are concerned that the market is placing too much emphasis on the “Phase One’ of the trade deal coming to fruition.
Meanwhile, as global stocks extended multi-year and multi-month highs, US equity spiked on the comments as well.
The European market also rallied, with Stoxx 600 benchmark is hitting a four-year high. Global oil prices went up amidst the broad market rally.
While the stock market is surging gold is in the red hitting new daily lows.
Bitcoin has been outperforming gold for the past nine years but today the digital gold is falling the same as gold.
The leading cryptocurrency is trading at $9,199 with 24 hours loss of 1.13%, as per Coincodex while managing the daily trading volume of just about $200 million.
Bitcoin might not be seeing the greens currently but as we reported the market is giving the signs that we are getting ready for an “explosive” move. The low volume, tight range, CME gap being filled and BTC entering the overbought levels are pointing towards this move.
Another positive factor for BTC is the open interest on Bakkt that has doubled to $2 million, as reported by Skew Markets. As Bitcoin Exchange Guide shared, these increasing numbers suggest that new money might be coming into the market.
Bakkt total open interest doubled yesterday to $2mln – still some way to go but growing! pic.twitter.com/97FiwH4iAa
— skew (@skewdotcom) November 7, 2019
This current phase, according to prominent analyst Willy Woo is just a “prolonged consolidation inside a macro bull market.”
Many have already called out the bottom of the market and being in the “blow-off” phase, the question remains whether we are taking a detour around $8k first or going straight to a new 2019 high.