January Payrolls Against The Markets

Many investors in Crypto Twitter are shocked due to the red charts in Bitcoin, altcoins, gold, and stock markets. If all of them are losing their value at the same time, it means that there is a difference on the other side of the scale; in the value of the US Dollar.

DXY index gained around 0.8% with the recent data coming from January Payrolls. Though the expectation was around 187K, the actual number is as high as 353K (!) according to Investing. Actually, there are two things to ask ourselves:

1 - Why was the expectation too low even though it was above 300K in December already?
2- How does the nonfarm payroll can increase even though there are lots of layoffs in the companies?

I think we will see an " update " in a couple of weeks like it happened earlier.

Unfortunately, I do not give any credit to the forecast and actual data. Have a look at the last month's report:

The revisions are a part of the reports if we look at the past performances.

Even if we do not care much, the markets do care!

Thus, rather than criticizing, I believe we need to consider what can be done in such cases.

Strong Dollar; Cheap Investment

If the DXY is green but the rest is red, it might be high time to fill the shopping cart with cheap and promising investments.

The 1% drop may not mean something big, however, if you already have a spare stablecoin bag, then you can enjoy around 5% cheaper prices at least for the short term trades.

We may need to accept the fact that the market still does not believe in the narrative of interest rates when Powel clearly said that the interest rate is likely to stay stable for March, as well.

As a consequence of the " verbal guidance " by the chair of the FED, there is almost no way to convince the investors to take high risk and buy crypto or stocks.

There is bad news, as well.

US 10 - Year bond was oversold in 4 - Hour chart and it recovered well above the moving averages. The daily chart still shows strong resistance levels above 4% but the current rate is already good enough for new buyers to jump into that (especially when we consider the expectation of lower rates as early as Q2 2024).

Money will flow into bonds and USD again. There might be no escape. However, for the long term investors, these are good opportunities to strengthen the portolios with hard cap valuable assets. My humble strategy is to use the stable portofolio actively in both crypto and other markets.

What do you think about the nonfarm payrolls data and the effects on the market?

Share your thoughts below 👇

Hive On ✌️

Posted Using InLeo Alpha