Hi there! Last Friday, February 7th, Grenada celebrated 51 years of Independence, and let me tell you, the energy was contagious! Every media platform I tuned into was flooded with red, green, and gold, flying high on houses, lining the streets, wrapped around the shoulders of proud Grenadians near and far. We showed up for our little island with big love.

I ain’t go lie, my mouth watered when I saw Oil Down bubbling in pots all over the country. My peeps were eating good. Nothing speaks togetherness like a bite of rich coconut-milk-soaked breadfruit. And, every click of that saffron-stained dumpling is a reminder of what makes us Grenadian!

This year’s theme, “The Next 50: Embracing a Future of Development, Transformation, and Unity,” tells me (and I’m sure every Grenadian) that while we honour our roots, we must continue to work towards a brighter future. As I watched the seven-hour live stream of the National Independence Celebration, the rhythms of Vieux Corps, the pitch black Jab Jab, the stunning array of colours on the Short Knee, the Bèlè dancers, singers, poets, and drummers, made my heart full. And when night fell, the sky over the Stadium lit up with a breathtaking drone show, sealing another moment in history, fifty one years strong.

Proud to Be Grenadian! Proud to rep 473! 

Alright, let’s dig in!

Last Week’s Market Overview (February 2 - February 8, 2025)

U.S. equities faced a volatile trading week as investors reacted to tariff developments, earnings reports, and economic data. Despite attempts at a midweek rebound, all major indexes finished lower. European stocks continued their record-setting streak, while Asian markets closed mixed amid ongoing trade tensions. The bond market saw heightened volatility as investors recalibrated expectations on future Federal Reserve policy moves. Meanwhile, crude oil prices dropped on inventory concerns, and gold extended its rally, driven by safe-haven demand amid geopolitical and economic uncertainty.

U.S. Markets Recap

Equities:

The U.S. stock market experienced choppy trading, with tariff uncertainty dominating headlines:

• Dow Jones: -0.54%

• S&P 500: -0.24%

• Nasdaq Composite: -0.53%

Key Market Movers:

• Tesla (TSLA) had its worst week since October after reporting disappointing sales figures in Europe and China.

• Alphabet (GOOG/L) and Amazon (AMZN) faced selling pressure due to weaker-than-expected cloud growth and margin concerns.

• The Magnificent Seven earnings results were mixed, with strong numbers from Apple (AAPL) and Meta Platforms (META) helping limit broader declines.

Fixed Income:

• The Bloomberg U.S. Aggregate Bond Index ended the week relatively unchanged, reflecting uncertainty in the bond market.

• 10-year Treasury yield: Declined by four basis points (0.04%).

• 2-year Treasury yield: Rose eight basis points (0.08%) as the market adjusted expectations for the Fed’s rate-cut trajectory.

• Market Reaction to Tariffs: Bond yields fluctuated as investors processed new tariff announcements. Short-term yields moved higher due to inflation concerns, while long-term yields dropped on fears of slowing economic growth.

Commodities:

• Crude Oil: West Texas Intermediate (WTI) crude prices declined as rising inventories and concerns over global demand weighed on prices.

• Gold: Extended its winning streak for a sixth consecutive week, driven by safe-haven flows and increased central bank purchases.

• Silver: Gained momentum, while copper struggled amid trade uncertainty.

Currencies:

• The U.S. dollar ended slightly lower after tariff delays on Canadian and Mexican goods helped ease earlier gains.

• The Euro weakened against the dollar, while the Japanese Yen appreciated amid increased demand for safe-haven assets.

U.S. Economic Recap (February 2 - February 8, 2025)

• Jobs Report: Payroll growth slowed to 143,000, reflecting weaker hiring in energy and manufacturing sectors.

• Unemployment Rate: Edged down to 4.0%, indicating a still-tight labour market.

• ISM Manufacturing PMI: Surpassed expectations, posting its first expansion since October 2022.

• JOLTS Job Openings: Declined below expectations, signaling a cooling labour market.

Global Markets Recap (February 2 - February 8, 2025)

Europe:

• The STOXX 600 reached another record high, supported by strong corporate earnings and a 0.25% rate cut from the Bank of England.

• Key earnings drivers: Strong reports from ASML, Nokia, and Shell boosted European equity sentiment.

Asia:

• Asian markets closed mixed, with mainland China rallying after reopening from the Lunar New Year holiday.

• Hong Kong tech stocks surged, led by gains in IT and consumer sectors.

• Japan’s Nikkei slipped, weighed down by currency fluctuations and central bank comments on rate hikes.

Crypto Recap (February 2 - February 8, 2025)

• The total crypto market cap declined slightly to $3.708 trillion.

• Bitcoin (BTC): Dropped below $92,000, triggering $2.1 billion in liquidations before rebounding on eased tariff fears.

• Altcoins: The market saw an 18% decline, with only select names like Mantra (OM) posting gains.

• David Sacks, Trump’s Crypto Czar, announced plans for a U.S. Bitcoin Reserve and emphasized the role of stablecoins in maintaining dollar dominance.

• Elon Musk proposed moving the U.S. Treasury system to blockchain, sparking industry-wide discussions on adoption.

• Google’s $75 billion AI investment triggered market reactions, impacting tech-related crypto tokens.

• Bloomberg analysts predicted a 90% chance of a Litecoin ETF approval in 2025, ahead of other potential spot crypto ETFs.

• Last week’s top crypto gainers: OM, LTC, and TAO

Here are other key highlights from last week:

• Crypto.com revealed CRO ETF, stablecoin launch in roadmap.

• MicroStrategy rebranded as Strategy and unveiled Bitcoin-focused identity.

• Ondo Finance unveiled Layer-1 Network for tokenized assets.

• Reservoir, NFT infrastructure provider for Coinbase and MetaMask, raised $14M.

• Lumia partnered with Polygon to transform tokenized RWAs.

This is an important week in the markets!

Key U.S. Economic Releases:

• CPI Inflation (Wed.)

• PPI Inflation (Thurs.)

• Jobless Claims (Thurs.)

• Retail Sales (Fri.)

Fed speakers this week:

• Fed Chair Powell testified before Congress, noting concerns over tariffs and potential inflation risks.

• FOMC Members Hammack, Williams, and Bostic also scheduled to speak this week.

Earnings: 

• Shopify (SHOP) beat on fourth-quarter revenue but gave mixed guidance. The company expects mid-20% revenue growth for Q1, slightly below analyst expectations of 24.4%. Shopify also noted that Q1 is seasonally its lowest gross merchandise volume quarter.

• Other highly-anticipated Earnings to pay close attention to are outlined in red below.

  

  Source: Jesse Cohen via X

Global Economic Events This Week:

• ECB President Lagarde Speech (Feb 10)

• BOE Governor Bailey Speech (Feb 11)

• China New Loans (Feb 12)

• New Zealand Inflation Expectations (Feb 12)

• UK GDP (Feb 13)

• Swiss CPI (Feb 13)

Trading Tip:

“Trading day before Presidents’ Day weekend is typically bullish!”

Week 2/02/25 - 2/08/25 Recap

Special Tools and Strategies

Crypto Leverage Trading Platforms

Issue #118 provided a basic introduction to crypto leverage trading mechanics, covering essential concepts such as margin requirements, liquidation, and leverage ratios. It also included a list of popular cryptocurrencies suitable for leverage trading.

This week, I will focus on how to select the right crypto leverage trading platform for your needs.

Not all trading platforms are created equal. Choosing the right one requires careful evaluation of several factors, including regulation, security, and risk management features. This discussion simplifies the process by breaking down the key considerations for selecting a leverage trading platform.

Regulatory Considerations

For traders in the United States and Canada, regulations significantly impact leverage trading options. Some exchanges block users from certain regions, while others require strict identity verification (KYC). I have seen traders lose access to their funds due to sudden regulatory changes.

As a workaround, some traders use a VPN (discussed in Issue #115) to access restricted platforms by selecting a compliant location. If you choose this approach, never keep large sums of funds on the platform and ensure your VPN is consistently connected to the correct location. I have seen traders lose access to their funds because of a VPN disconnection, causing their IP address to reveal a restricted area.

How to Evaluate a Leverage Trading Platform

1. Regulatory Status

• Licensing: Verify if the platform is regulated by agencies such as the CFTC, SEC, or FINTRAC.

• Geographic Restrictions: Confirm whether you can access the platform in your country without relying on a VPN.

• Regulatory Developments: Stay informed about legal issues, ongoing investigations, or upcoming regulatory changes that could affect your ability to trade.

2. Risk Management Features

• Liquidation Protection: Some platforms offer partial liquidation, which reduces losses by closing portions of a position instead of liquidating the entire trade.

• Insurance Funds: Certain exchanges maintain insurance reserves to cover losses from extreme market events.

• Circuit Breakers: These features pause trading during high volatility, helping prevent traders from suffering major losses due to rapid market swings.

• Position Limits: Controls that prevent users from taking on excessive risk by capping maximum position sizes.

3. User Protection Measures

• KYC & Security: Regulated platforms require identity verification, which enhances account security and regulatory compliance.

• Fund Segregation: Ensure that the platform keeps customer funds separate from company assets to prevent misuse.

• Withdrawal Security: Look for platforms that offer multi-factor authentication (MFA), withdrawal whitelisting, and cold storage wallets for added security.

Platform Comparisons

Table 1: Centralized Exchanges Offering Leverage Trading in the U.S. & Canada

Table 2: Decentralized Exchanges Offering Leverage Trading in the U.S. & Canada

Final Reminder: Always trade within your risk tolerance and never use more leverage than you can afford to lose. Leverage trading carries high risks, and losses can exceed your initial investment. Always check your local regulations before trading.

Disclaimer: This newsletter is strictly educational. The information this report provides does not constitute investment, financial, trading, or any other advice. You should not treat any of the report’s content as such. Please be careful and do your research.