Daily Analysis: Stocks Levitate with All Eyes on Bitcoin

Monday Market Recap

Asset Current Value Daily Change
S&P 500 2599 -0.09%
DAX 13000 -0.45%
WTI Crude Oil 57.75 -0.62%
GOLD 1294.00 0.41%
Bitcoin 9759 2.23%
EUR/USD 1.1903 -0.31%

The major US indices traded just shy of their all-time highs today, as volatility remained near its historical lows on Cyber Monday. As Europe and Asia traded lower, with China leading the way south, the US session brought a wave of buying, which was only interrupted by a slight midday sell-off. The daily range on Wall Street resembled the Christmas period as bears are seemingly extinct and the Nasdaq-giants continue to drive the indices higher.

NASDAQ 100 at All-Time Highs, 4-Hour Chart Analysis

Black Friday sales estimates pushed the shares of Amazon to a new record high, as Jeff Bezos’s wealth recently hit $100 billion, while Google parent Alphabet and Facebook are also trading in uncharted territory regarding valuation, even as a large number of smaller stocks are still left out of the party.

With the global equity bull still roaring, the less euphoric bond market continues to show divergences, as high yield issues and long-dated Treasuries don’t agree with the optimism of that stock trends suggest at this point. Gold and the Japanese Yen are also showing strength, with the reports on the next possible North Korean missile test also fueling safe haven assets today. So as on the surface everything is stable, the central bank fueled asset price boom might be close to a tipping point,

Gold Futures, 4-Hour Analysis

Cryptocurrencies

Bitcoin took another step towards mainstream recognition today and in recent days, as media attention focused on the most valuable cryptocurrency amid its historic speculative surge towards the magical $10,000 mark. BTC hit a high of $9700, while most of the main altcoins are also at or near all-time highs, with Ethereum consolidating just below $500, another historic price level for the segment. While BTC is severely overbought, picking a top in such a rally is impossible, but when the inevitable correction comes, volatility will likely skyrocket.

ETH/USD, 4-Hour Chart Analysis

Ripple is the weakest among the most valuable coins, trading well below its record high, while Litecoin is edging towards the $100 level. Dash, Monero, IOTA, and Ethereum Classic are near their respective all-time high, while NEO is still trading in its own rhythm, ever since the China crash in September, currently near the $40 level. With the forked Bitcoin Gold and Bitcoin Cash also holding strong, the total value of the market reached $305 billion, as more and more investors get lured into the coins by the stellar gains.

IOTA/USD, 4-Hour Chart Analysis

Key Economic Releases on Monday

Time, CET Country Release Actual Expected Previous
17:00 US New Home Sales 685,000 627,000 645,000

Key Economic Releases on Tuesday

Time, CET Country Release Expected Previous
9:00 UK Bank Stress Test Results
15:30 US Fed Chair Elect Powell Speaks
17:30 US CB Consumer Confidence 123.9 125.9

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Author:
Trader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.