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Snplong

Long on S&P 500During the last few days, both Cryptocurrency prices and US equity prices has been shaky and have dropped from their ATH (All-time-high). Reason being that there was uncertainty in leading up to Federal Reserve Chair Jerome Powell speech. Many investors were speculating that interest rate might increase together with treasury yields because inflation of 2% is being met by the economy. So how does interest rate affects prices of cryptocurrencies and US stocks? If interest rates increases, US market will suffer because the cost of borrowing for big companies increases. On top of that, the returns on risk free investment, ie deposits with the banks would increases, therefore there will be an outflow of investments from cryptocurrencies and equities into these safer fixed income assets with the government and banks since interest rate increases and returns are slightly more attractive. However, Powell announced yesterday (12 hours ago) that economy still needs Fed support and pushes back on inflation worries. Federal Reserve Chair Jerome Powell on Tuesday pushed back on suggestions that U.S. central bank support for the economy risked inflating a dangerous asset bubble, insisting the support was still needed and that investors were responding mostly to expectations for a successful recovery. Therefore, i believe this year will still rally for both cryptocurrency and US market and we will see a rebound from this dip soon.
SP:SPXLong
by Trader_hao
QE release, long SnPAs requested by many to take a look at equities market, i shall do some basic analysis from now on on the shares market in US and globally. Equities Market just surged for futures of S&P500 because the Federal Reserve Unveils Unlimited QE Amid All-In Effort to Confront 'Severe Coronavirus Disruptions'. I think this is the first time its ever done an unlimited QE and this could help revive the economy. Its gonna be a massive bailout. The Fed will buy unlimited amounts of Treasury bonds, and purchase corporate and municipal debt for the first time, in an historic effort to defend the U.S. economy from 'severe" conoravirus distruptions.
CME_MINI:ES1!Long
by Trader_hao
Short on S&P500 but long term buy opportunity afterThe S&P 500 index is a benchmark of American stock market performance, dating back to the 1920s. The index has returned a historic annualized average return of around 10% since its inception through 2019 and thats a good representation of the market. Compared to fixed deposits, yearly returns ranges from 0.5%-2%. While that average number of 10% may sound attractive, timing is everything - get in at a high or out at a relative low and you will not enjoy such returns. Inflation is around 3.15% yearly so the actual returns is only at around 6-7%. That said, its still better than parking your money in the bank and gaining that 0.05% interest. So thats why its important to time the market and enter at the right time. If you had just entered into the stock market 1 month ago, your probably would have lost 30% of your funds that you use to enter.
TVC:SPXShort
by Trader_hao