Graph Protocol Relief RallyNear-term long positions are attractive, with reassessment necessary as inflation reporting in April approaches. Bullish continuation will be more risky in the days leading up to CPI/PPI reporting.
Following Bitcoin and the broader markets, GRT will realize near-term bullish support as the markets have shrugged of the Fed's 25 bps rate hike.
GRT will flip 20 EMA into support, then push through 100 EMA... ultimately testing 200 EMA until next round of economic reporting.
Sharply rising prices are elected to continue as there's been no substantive change to monetary policy, QE continues, corporations continue elevated pace of stock buybacks.
Inflation results for March (CPI & PPI) will be published by BLS on 4/12 & 4/13 with high likelihood of further increases from the lagging reporting.
April reports will be a pivotal as the FOMC will not meet until early May with the April inflation results published a week after the Fed meeting.
Current expectation is shockingly higher inflation with the Fed's hand being forced, either accept persistent inflation and risk a wage-price spiral or adjust approach with more hawkish action and less reliance on hollow words.
Maintaining status quo until midterm elections is likely to become untenable, recession risk is increasing.
