...I must certainly say that Powell surprised almost everyone with his hawkishness about 2 rate cuts next year.
...And this effectively impacted market sentiment negatively, just when most thought the Melt-Up party was just starting to boil, exuberance got crushed.
...that event this morning has changed outlook. Now Gold would have to wait 9-12 months before its next bull, because Gold would likely hibernate in ranges while rates are kept higher for longer.
...and unfortunately too for BTC, its momentum affected as well and we may well have a month long consolidation on a wait and see approach to understand what Trump does after his inauguration. I think the BTC story and rally is still intact except that we could be in for a month long consolidation between $95-105k. Short term downside could be extended if the market decides to commence its 5-10% correction. S&P500 is down just -3.74% from its 6,100 peak, we could get to 5500 to complete a -9.8% peak to trough move, and a further -6.3% downside move. Gold is a worry if $2600 does not hold.
...I have been sidelined, thank goodness. But I also took cover on my weekend portfolio, so it is fairly well protected against going into red territory. But no grand Xmas celebrations. The Grinch took the bacon unexpectedly.
