The markets love following some stories. As long as the narratives are picked up, people have a risk appetite to invest their life savings. Otherwise, money is afraid of risks and uncertainties.
During the years 2022 and 2023, the dominant narrative in the markets, both in crypto and stocks, was the interest rates that were increased by most of the central banks so that they could deal with the growing inflation in their fiat money.
As the inflation rates have settled down both in the Euro Area, in most of the European countries, and in the USA with 3.2% inflation rate.
The markets no longer care about what the central banks have to say because they run out of fuel to affect the markets negatively or positively. We all know that the central banks will cut the interest rates gradually in 2024.
When you know the next move of your rival, it is easier to control the game with your strategy. Here is the point that we, investors, start to follow other charts to decide on the path we are heading to.
NASDAQ, S&P and DAX
The markets are about to erupt like a volcano 🌋
We have already seen double top formations even when the interest rates are above 4% in the top fiat currencies.
This is the weekly chart of NASDAQ to understand what the current situation is.
The investors started to pile up "cheap" shares of strong companies as we know that both the revenue of these companies will increase when the interest rates go lower and the Quantitative Tightening settles down. Also, we know that there will be more demand for the risky assets as the future is promising.
Unless you are an FX trader, all charts look similar as they are fed by similar narratives.
We are in a position where markets have formed their double tops. What might happen later on?
We can expect the formation of cup ad handle in the global markets.
The double tops are perfect representation of the classic cup and we may see a drawback in the early days, maybe in the first quarter of 2024, with a handle formation. Yet, the red days during the handle do not mean a trend shift. Rather, we may exactly see the situation that is represented in the visual by Scanz.
Crypto Converges Again
We know that the crypto ecosystem has its dynamics. However, at a point, all markets are bound to the global policies that are taken by the central banks.
Obviously, everyone is expecting to see BTC ETFs getting approved. When we combine the trends in the global markets, NASDAQ, S&P, DAX, or other correlated markets, we can see that there is an accumulation of power to make another all time high record.
I think the investment decisions are finalized for 2023. Nobody expects a major event to happen in three weeks. However, for 2024, especially starting from Q2, we may see the markets green, strong, and profitable.
I'm adjusting my portfolio accordingly. The possible moves of Gold, Silver, Oil as well as the other commodities cannot be disregarded, either. The year 2024 might be a neutralization time for markets to cover the losses.
What do you expect to see in 2024 in all markets?
Share with us below 👇
Hive On ✌🏼
Posted Using InLeo Alpha
