Ed Moya, Senior Market Analyst at OANDA, joins us to review how US equity markets, bonds, the US dollar, and cryptos pushed off from the gate, after a long 3 day holiday weekend. Key considerations have been around what the central bank messaging from the People’s Bank Of China and the Fed is causing to economic expectations. We review the larger question of if this recent broader equity participation and more speculative funds coming into the general equities markets and cryptocurrencies are just going to be a bull trap that catches retail investors piling in and holding the bag, or if we are seeing legitimate signs of a new bull market developing.
Ed points out that typically when we see retail investors jumping on a trend late in the game, that it could signal an overbought period lining up for a corrective move. Another topic of discussion is around whether the nature of participation in the markets has changed in light of the fixed income markets being far less risky while still providing a respectable yield. We wrap up with getting Ed’s thoughts on what key data is moving the needle in the cryptocurrencies.
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Click here to visit the OANDA website and read over Ed’s daily market note.