Control thy emotions
Important macroeconomic data is being released this week and as traders we must see through the veil to not let the numbers dictate our emotions
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Macro data
We can see here the 4 key data points to track will be the interest rate announcements coming out of the UK and AUS as well as the unemployment data coming out of the EU and the US.
This will prove to be an adequate testing ground for the bulls risk appetite as equities and crypto have previously rallied on hot CPI numbers and interest rate rises. Should the data come out and show increases in unemployment or we get larger than expected interest rate hikes but the markets continue to rally, this should be a clear indication that we are going to witness a strong bear market relief rally.
Spreads you can park a bus through
The US 2yr yield is offering 2.88% whilst the US 10yr yield last printed 2.65% providing markets a massive 23bps spread and a deeply inverted yield curve, mind you this is one of the financial markets strongest tools for predicting a recession. This data flies in the face of the US governments attempt at narrative control that there is no recession nor is there one coming but I’m not here to debate definitions, I’m here to point the intrepid crypto investor in the right direction.
ETC vs ETH
This chart has so many setups and narratives built into it, I personally think it’s a traders paradise. For example, if you’re an ETH maxi and big believer in Vitalik, you can short ETC and long ETH, if you’re a narrative trader you can short ETH and long ETC to play the “Return to the original chain” play, for macro bears, they can short ETC as it has massively outperformed the wider crypto asset class and finally for momentum bulls they can simply hop on to the fastest horse and long ETC.
I’m not here to tell you which play would suit you best but to encourage you to run your own analysis and comment below what you think will run best.
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