TRADING ALERTS
The Solana-Ether spot pair trading on Binance has seen a significant surge of over 15% since October 1, extending its winning streak over three months. However, this rally appears to have reached a point of being overbought, as indicated by the pair’s 14-day relative strength index (RSI) crossing well above 70, the highest level since March. It is worth noting that while an RSI above 70 does not necessarily signal the end of the uptrend, it does suggest a need for caution. Potential support for a pullback could be found at 0.064, the high point reached in August. Some traders interpret an overbought RSI as a sign of strong bullish momentum, though it is essential to consider that an RSI can remain overbought for a while. Moreover, on a separate note, the BTC/Gold ratio has shifted lower after failing a trendline resistance from previous highs in March and June, with the MACD indicating potential continued underperformance of Bitcoin compared to Gold in the near future.
SPARKING INVESTOR EXCITEMENT
Tesla’s third-quarter earnings report exceeded expectations, with the company reporting higher profits and gross margins than anticipated. Despite missing delivery targets earlier, Tesla’s revenue surpassed forecasts, and it also posted strong adjusted earnings per share. The company’s gross margin figure came in significantly higher than expected, showcasing improved efficiency and profitability. Furthermore, Tesla revealed plans to introduce more affordable vehicle models, with preparations underway for their launch in 2025. CEO Elon Musk expressed positive projections for Tesla’s growth potential, with a 20-30% increase in volume anticipated for the upcoming year. Additionally, Tesla’s Energy Generation and Storage business reported record margins for the quarter, indicating strong performance across multiple segments. Investors reacted positively to the earnings report, driving a surge in Tesla’s stock price during premarket trading.
PREPARING FOR SURGE
As the 2024 election draws to a close, major banks’ trading desks are preparing for increased activity, which could further solidify a successful year for Wall Street. Bank of America anticipates a rise in trading volume following the election, with expectations that this trend will mirror past post-election surges. It is worth noting that the combined fixed income and equity trading revenue of JPMorgan Chase, Goldman Sachs, Morgan Stanley, Bank of America, and Citigroup has already reached an impressive $89 billion in the first three quarters of the year, marking a 5.5% increase from the previous year. Factors driving this performance include interest rate cuts, geopolitical tensions, and election uncertainty. Overall, the market volatility surrounding the election is viewed as an opportunity for traders to capitalize on short-term gains, albeit with some risks involved.
SLOWER SALES
In September, sales of previously owned homes in the U.S. declined by 1% compared to August, reaching the slowest pace since October 2010, as reported by the National Association of Realtors. With a total of 3.84 million units sold, this marks a 3.5% decrease from the previous year. Sales dropped in three out of four U.S. regions, with only the West region seeing an increase. Factors such as fluctuating mortgage rates and rising inventory levels have contributed to the stagnant sales in the housing market. In addition, despite the increase in available homes for sale, prices have continued to rise, with the median price of an existing home reaching $404,500 in September. Moreover, cash transactions accounted for a significant portion of sales, comprising 30% of transactions, while investors made up 16% of purchases. Overall, the housing market is experiencing slower sales and longer listing times, with potential benefits for buyers due to increased inventory levels and slightly more favorable conditions.
FLUCTUATING CLAIMS
The U.S. Department of Labor reported an increase in new applications for unemployment benefits to 227,000 for the week ending October 18, below expectations and the previous week’s count of 242,000. The insured unemployment rate was at 1.3%, with the four-week average rising to 238,500, and Continuing Jobless Claims reaching 1.897 million for the week ending October 11. New claims fell back to levels before hurricanes impacted southeastern states, dropping by 15,000 to 227,000 last week. These fluctuations in data were attributed to the impact of recent hurricanes causing job losses and delays in applying for benefits. Additionally, recurring claims rose sharply, indicating challenges in job searches potentially worsened by a strike at Boeing Co. The report also noted varying trends in different states, with declines in some affected by hurricanes and increases in areas experiencing manufacturing layoffs, showcasing the complex dynamics of the labor market amidst external disruptions.
