Bitcoin hits $60k for first time

TAKEAWAYS

•    Bitcoin has topped $60,000 for the first time
•    Dow Jones finishes the week at a record high
•    Nasdaq under-performs Dow for 4 weeks for first time since 2016
•    Hong Kong stocks slide over 2% on Friday
•    10-year Treasury yield hits 1-year high
•    Dollar gains as US yield spread over Europe widens
•    Brent crude oil dips but holds near $70 per barrel 
•    Week ahead: Fed, BOE, BOJ meetings
•    TSA records highest US air passenger screenings in a year
•    Germany declares a ‘third wave’ of covid-19

BEST CHART
ESP35 – Weekly Candlesticks

 
Source: GKFX / MT4 (March 14, 2021)

ESP35 has broken out above a confluence of resistance from the lows of December 2018 and August 2019 and the 61.8% Fibonacci retracement of the 2020 crash. It furthers the bullish case that the price will retrace the entire down move from February to March 2020.

GURU WISDOM

“If you aren’t thinking about owning a stock for 10 years, don’t even think about owning it for 10 minutes.” – Warren Buffet

MARKETS

*Daily closing price
↗ EUR/USD    1.1954        (+0.02%)
↘ GBP/USD    1.3920        (-0.01%)
↘ USD/JPY    108.94        (-0.05%)
↗ S&P 500    3932.75    (+0.10%)
↘ Hang Seng    28,739.72    (-2.20%)
↗ Gold        1726.41    (+0.29%)
↘ Oil (Brent)    69.22        (-0.59%)
↘ Bitcoin    59.846        (-2.22%)

NEWS

Bitcoin reached a record high above $60,000 for the first time over the weekend. It was less than a month ago that Bitcoin reached $50,000 for the first time. There is no one catalyst for the move over $60k but it did come a day after a record breaking NFT art sale, where work from artist Beeple sold for $60 million. NFTs are bolstering the case for blockchain, the same technology behind cryptocurrencies. 

Gold had its best week in seven in a big buy-the-dip move after dropping 20% from its record high and entering a bear market. The move has come amid a more stable US dollar and some risk-off sentiment that saw tech stocks drop, but flies in the face of strong bond yields, where the 10 year US Treasury yield reached a 1-year high on Friday. 

The Nasdaq managed to finish the week higher for the first time in four weeks but trailed the Dow Jones for a fourth week. While tech saw a big mid-week rebound, the sector is still trailing reopening and real-economy cyclical stocks that are expected to do especially well after the passing of Joe Biden’s $1.9 trillion covid relief bill.

DAY AHEAD 

*Times in GMT
02:00 – China Industrial Production (YoY)(Jan)
02:00 – China Retail Sales (YoY)(Jan) 
13:30 – US NY Empire State Manufacturing Index(Mar)