August 29, 2021
Weekly Market Outlook
By Keith Schneider
This week markets regained its footing with risk gauges improving while the Hindenburg Indicator increased its reading to ominous levels as well. Market internals improved across key equity benchmarks to best levels since mid-June, benefitting small caps (IWM/Grandpa Russel) the most, up over 5% for the week while bumping both 3 and 6 month returns to positive territory.
Along that vein, gold also bounced and significantly improved its technical picture getting a tailwind from increased geopolitical stress, a dovish fed, and a weaker dollar. The takeaway is that the buy and hold crowd is most at vulnerable and (our) risk management is even more critical as we head into September.
This week’s market highlights:
By Holden Milstein
-Bitcoin (BTC) started this week with price getting over the $50,000 level on Monday before drawing back down to a weekly low at $46,300 later in the week and finding strong support at the 200-dma
-A Sunday close over $49,300 would give Bitcoin a positive weekly close for the 6th week in a row, as well as place BTC's price back within the 2-month range that led to an over $64,000 all-time high earlier in 2021
-Ethereum (ETH) remains relatively flat this week while competing decentralized-finance projects Cardano (ADA) and Solana (SOL) have both reached new all-time highs this week (Both of which are top 10 coins by market cap)
-NFT's (Non-Fungible Tokens) have seen astronomical sales prices this week, as many within the cryptocurrency community are using these virtual items as new forms for storing value, similarly, to investing in a piece of art or a highly collectible piece of sports memorabilia. This diversification of investment types within the crypto space is indicative of the accelerating rate of adoption to the emerging technologies built on blockchain.