Wednesday's Market Update (Jan 4, 2022)

05 Jan 2023 by rate3

Tuesday's winning game plan was to short on the post-trading session and then to continue buying the resulting deep during all day and (the hazardous part) on the pre-trade. Those who risked it saw the red flashing all over their screen at the Wed's morning when the Bureau of Labor' report showed only a mild decrease in job openings (to 10.46M in Dec compare to 10.51M a month earlier, while markets expected it to be at 10M). ISM manufacturing sliding deeper to 48.4 (instead of 49) didn't help either.

Nonetheless, bulls persisted throughout the morning and brought the Index back. Only to see it going back to South after FOMC's minutes revealed that the FED's gerontocracy stands united behind the idea that no rate's reliefs are possible in 2023. The resulting jigsaw kept NASDAQ pretty even on the daily graph (opened: 10467, closed: 10458). Naturally, the same happened to BTC almost synchronously (opened on Binance: 16828, closed: 16806).

After institutions completed the BTC trading takeover in 2021 most bots have been simply following NASDAQ. Switching on-off happens usually on jumping volumes, which indicates either a crowd's over-excitement or a conspicuous whale's entry. At the same time, in 2022 institutional crypto investments (inflow) dropped 95% to $433M (from 9.1B in 2021), which is comparable to their level reached in 2018 - $233M (according to CoinShares). So, those guys keep a lot of dry powder on a side. Meanwhile they will just trade - no commitments.