Market Analysis – Economy is Tanking But Stock Market is Rising?

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As various countries started loosening the lockdown to save the flailing economy, we get news reports of new infections starting to surge.

At the same time, we see multiple asset classes surging in the market, creating a stark contrasting reality.

The big question is, which is leading and which is lagging? (Economy vs. Financial markets)

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5 Bullish Asset Classes

Telegram Signals Daily Trend Analysis 120520

It is quite rare to see so many asset classes perform so strongly, especially when the economy is not doing well, and this is probably due to excess liquidity.

In addition, many of these asset classes usually move in opposite directions from one another, which makes it all the more strange.

Here are the 5 asset classes:

  • NASUSD – Nasdaq stock index
  • XAUUSD – Gold
  • USDIDX – US Dollar index
  • TNOTEUSD – 10-year treasury bond
  • BTCUSD – Bitcoin (not listed above)

 

V-shape Recovery for the Stock Market?

The stock market (especially the Nasdaq) has already recovered almost all its losses for the year, but will it be able to chug ahead and make new highs?

Telegram Signals Stock Markets 120520

 

According to the Wall Street Journal, here are 5 reasons why the stock market is rallying so strongly despite the economy not doing well.

Telegram Signals V Shape Recovery 120520

 

On the other hand, we are also seeing a large outflow of funds from stock markets, so could this be investors starting to take profits after the recent strong rally?

Telegram Signals Fund Outflows 120520

 

Will Lockdowns End Soon to Save the Economy?

Last Friday we also had the NFP (non-farm payroll), and although it was slightly better than expected, the numbers still do not look good, unless they find a way to reopen the economy safely.

Telegram Signals Unemployment 120520

 

Several countries have started to loosen the lockdowns and get the economy back to normal, but it seems like a tricky balancing game / whack-a-mole, because any small outbreak can trigger new lockdowns all over again.

Over in Russia, the outbreak seems to be getting worse as well.

Telegram Signals New Covid Cases 120520

Taking My Profits for Bitcoin at $10,000

Recently, Paul Tudor Jones mentioned in an interview that he is bullish on the stock market, and buying Bitcoin to hedge against inflation.

Telegram Signals Bitcoin Paul Tudor Jones 120520

 

If you have been following our Bitcoin trades, we have been accumulating since $4,000+, and we have taken profits at $10,000 last week, so we will be waiting for lower prices to buy again.

Telegram Signals Bitcoin 040520 2Telegram Signals Bitcoin 040520Telegram Signals Bitcoin Chart 120520

This is one of our best trades this month, with a profit of more than 100%. This shows that you do not need to be making many trades a day, but rather be patient and wait for the best opportunities, then strike when the iron is hot. Congrats! ???

 

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Telegram Signals Gbpjpy 120520

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See you on the inside! ?



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