Market prediction by R.Manahuter

[Anonymous No.49978975]

Prices will have moderate positive outlook until late next week.

After that it will be bear market again for quite a while.

I don't feel like to explain in full detail why but to make it simple:

It is due to institutional investors having to rebalance books thus selling bonds for stocks which pumped stocks and ETF and there are a bunch of ETF and stocks that directly or indirectly have exposure to crypto so the rebalancing causes crypto to go up.
Sadly major cryptos have become a mirror of the stock market as they are now in many hedge funds and ETFs which move alongside the tech stocks.

So regardless of the fact that all the macro market indicators are bearish this week we will see a moderate rise in prices due to the rebalancing of books which is done regardless of market outlook which in turn causes rebalancing in mixed tech stock / crypto investment baskets.

Example:

Fund holds 50% commodities and 50% tech stocks.

Tech stocks shed 50% of value

The fund is now 75% commodities and 25% tech stocks.

So the fund sells commodities and buys tech stocks to rebalance.

When many large funds rebalance, like they have been doing in the last two weeks, at the same time than it will push tech stocks up in value for a bit regardless of the overarching market.

In turn a mixed fund holding tech stocks and crypto that just recently rebalanced by dumping cryptos when the tech stocks tumbled and now that crypto is down too and tech stocks are slightly pumped by rebalancing they are selling tech stocks for crypto.

However the overall market is not changing direction anytime soon as the fed is still going to increase interest rates.

[Anonymous No.49979011]

Good post even if it's just speculation.

[Anonymous No.49979138]

>>49979011

Thanks