Did we just bottom or more pain to come?
Stimulus stimulus stimulus!
The stock market and basically all risk-on markets saw a banner day today, sign of a bottom or a dead cat bounce?
For much of the last several weeks, risky assets have basically only gone one direction... down.
However, today there was an interesting development in the equity markets as well as the crypto markets.
We saw a market wide rally.
From stocks to bitcoin to altcoins.
It was a banner day and a relief from the blood letting we had grown accustomed to.
Why the bounce?
The reason for the bounce was a little more apparent this time around compared with others.
We had a fresh round of stimulus talks between both parties which actually sounded like it may go somewhere.
Both sides agree that more help is needed they just disagree on how exactly the country needs said help.
Today, there was a kernel of hope that they might be able to actually agree on something in the near future.
They have long said they agree on stimulus checks for Americans and that is what is expected to be included in this latest stimulus proposal.
They said they could vote on this new round of stimulus as soon as next week:
https://www.cnbc.com/2020/09/24/coronavirus-stimulus-democrats-prepare-new-relief-bill.html
The proposed stimulus is lower than democrats had been willing to go and higher than republicans had previosly been willing to go...
So, we will see!
(Source: https://bittrex.com/Market/Index?MarketName=USD-BTC)
But, was it the bottom?
I think this was the bottom yes.
Though that likely depends on whether we get more stimulus or not.
If we do, yes this was the bottom in stocks and in bitcoin.
If we don't get more stimulus but we get hints and stimulus in the future, yes this was also the bottom.
If we don't get more stimulus and it is unclear when or if we ever will, when then we might have some more pain to come.
I am betting on one of the first two scenarios mentioned above.
Hopefully you were buying stocks and bitcoin while you got em cheap!
Stay informed my friends.
Image Source:
-Doc