“Stayin' Alive!”

Hi There! Today, as I reflect on Veterans Day, I’m taken back to a cherished memory from Grenada—red velvet, and sometimes plastic, poppies. Growing up, every November, I watched as the Girls Guide, Brownies, and the Grenada Legion of the Royal Commonwealth Ex-Services League sold red poppies to raise funds for veterans on the island who had fought in the world wars. This tradition, rooted in colonial England, symbolized gratitude, and hope.

The history of the poppy is both somber and inspiring. During World War I, much of the fighting devastated Western Europe, turning once-beautiful landscapes into mud and rubble. Yet, amid the destruction, bright red Flanders poppies emerged, becoming symbols of strength and remembrance in the face of unimaginable hardship.

Reflecting on this, I’m reminded that life’s most difficult battles often lead to transformation. Like the poppies that bloomed amidst chaos, I too can find purpose through adversity. No matter what life throws at me, I keep it moving.

I want to take a moment to express my deepest gratitude to all veterans for their service and bravery. Your sacrifices are deeply appreciated.

Alright, let’s dig in!

Last Week’s Market Overview (November 3 - November 9, 2024)

What a week it was for financial markets! Last week, major U.S. indexes surged, driven by post-election optimism, robust corporate earnings, and a second rate cut by the Federal Reserve (Fed). The S&P 500 topped the 6,000 mark for the first time, while the Dow crossed 44,000, and Bitcoin hit an all-time high. Tesla added to the excitement by reaching a $1 trillion market cap. Across the globe, European stocks struggled with lackluster earnings and tariff worries, while Asian equities gained on Chinese stimulus hopes.

U.S. Markets Recap

After two weeks of declines, major U.S. indexes rebounded strongly. The S&P 500 surged 4.9% to a record high, the Nasdaq climbed 5.9%, and the Dow advanced 5%. The “Trump trade” following his re-election boosted industrials, financials, and small caps. Notable earnings included Amazon’s upbeat report, pushing it higher, while Apple saw declines due to weak Chinese sales. Tech giants such as Alphabet, Meta, and Microsoft also influenced market movements.

• Fixed Income: The Bloomberg U.S. Aggregate Bond Index rose as yields pulled back following the Fed’s rate cut. The 10-year Treasury yield closed three basis points lower, while the two-year yield edged up by four basis points. The market remains cautious about the Fed’s rate-cutting path amid potential inflation concerns from President Trump’s policies.

• Commodities: The Bloomberg Commodities Index remained relatively unchanged, with West Texas Intermediate (WTI) crude gaining 1.37% despite price volatility. Gold dipped 1.86%, and silver and copper also weakened as the U.S. dollar strengthened.

Currencies:

The U.S. Dollar Index rose nearly 1% during the week, with the yen and euro experiencing declines. Currency markets were heavily influenced by the U.S. election outcome and Fed rate decisions.

U.S. Economic Recap (November 3 - November 9, 2024)

• FOMC Rate Cut

  The Fed cut the federal funds rate by 0.25%, as anticipated, emphasizing balanced risks to inflation and employment. Economic uncertainty remains, and the Fed remains data-dependent.

• Goldilocks Scenario for Inflation Expectations

  November saw a jump in consumer sentiment, while median 12-month inflation expectations dipped to 2.6%, the lowest since 2020.

Global Markets Recap (November 3 - November 9, 2024)

• Europe: European stocks posted a third consecutive weekly decline. The U.K.’s new budget, featuring the largest tax hike since 1993, unsettled markets. The Bank of England cut rates, and German stocks rallied before pulling back. 

• Asia: Asian markets were mostly higher, with China’s stimulus announcement being a focal point. Japan outperformed, and Chinese markets saw gains, although trimmed later in the week. 

Crypto Recap (November 3 - November 9, 2024)

• Bitcoin Hits All-Time High

  Bitcoin soared to a new peak of $89,560.95 (at the time of writing).

• U.S. to Build Strategic Bitcoin Reserve

  Senator Cynthia Lummis announced plans for the U.S. government to establish a “Strategic Bitcoin Reserve” following Donald Trump’s presidential win. This initiative builds on her previously introduced BITCOIN Act of 2024, which outlines a strategy for the government to purchase up to 200,000 BTC annually, aiming to accumulate a total of 1 million BTC to be held for at least 20 years. Lummis’s plan aligns with President Trump's stated commitment to maintaining a national Bitcoin reserve, signaling a significant move toward institutional Bitcoin adoption by the U.S. government.

• Last Week’s Top Crypto Gainers: ADA, CRO, ENA

Here are other key highlights from last week:

• Binance integrates Amazon AI services for user verification and support.

• OpenSea introduces XP, Leaderboard, and Rewards System in Beta.

• Lamborghini to open ‘Revuelto NFT’ mint with Animoca Brands, Transak.

• Polygon’s (POL) Web3 unification plans get Magic Labs UX Boost.

All eyes on inflation data this week!

Key U.S. Economic Releases This Week:

• Wednesday: CPI Inflation

• Thursday: PPI Inflation, Jobless Claims

• Friday: Retail Sales, NY Fed Manufacturing Index

Fed Speakers:

• Tuesday: FOMC Members Waller, Barkin, Kashkari, and Harker

• Wednesday: FOMC Members Logan, Musalem, and Schmid

• Thursday: FOMC Members Kugler, Barkin, Williams and Fed Chair Powell

Earnings:

Key earnings are outlined in red in the chart below.

Global Economic Events This Week:

• Monday: China New Loans

• Tuesday: UK Economic Sentiment Data

• Wednesday: Australia Unemployment Report

• Thursday: ECB and BoE Governors' Speeches, China Industrial Production

• Friday: UK GDP Release

Trading Tip:

Expect a powerful rally in the altcoin market during the 2nd half of November!

Week 11/03/24 - 11/09/24 Recap

Special Tools and Strategies - Stock Chart

What is a Stock Chart?

A stock chart is a visual representation of a stock's price movement and trading activity over time. It offers key data that allows investors to analyze trends, make informed decisions, and potentially forecast future price movements.

Why Stock Charts Matter

• Visual Representation of Data: Stock charts condense complex financial data into a format that can be quickly understood, helping investors grasp a stock’s performance history.

• Trend Identification: Charts highlight upward, downward, or sideways trends, guiding investment decisions based on historical price movements.

• Pattern Recognition: Certain patterns, like head and shoulders or double tops, can signal potential future price movements, aiding investors in timing trades effectively.

• Risk Assessment: Analyzing historical price volatility helps investors assess potential risks associated with particular investments.

Key Elements of Stock Charts

1. Price Axis: Displays the stock's price range (vertical axis).

2. Time Axis: Shows the time period covered (horizontal axis).

3. Price Plot: Represents price movements using lines or candlesticks.

4. Volume: Indicates trading volume through bars or histograms.

5. Moving Averages: Lines that smooth price fluctuations over a specified period, showing trends.

Benefits of Using Stock Charts When Purchasing Stocks

• Timing Entries and Exits: Charts help identify when to buy or sell based on price trends and patterns.

• Support and Resistance Levels: These price points help guide investment targets.

• Stock Comparisons: Investors can compare stock performance or measure it against market indices.

• Complementing Fundamental Analysis: Charts provide additional context to fundamental data, offering a more complete view.

If you can master these basics, you can use stock charts as a powerful tool to enhance your investment strategy and potentially improve your returns.

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.