Market reaction after the rate cut: What to expect in the coming days?
Hello friends of Project HOPE we passed the day that was so long awaited, there was a strong reaction in the markets after the interest rate news, but I particularly think that the next few days and weeks will be when the real movement is determined. There are still expectations of what could happen, despite the fact that the interest rate was lowered a lot, there is a lot of speculation regarding unemployment, and that this data is what will really define whether the market and the US economy are good or not. No.
But still, we were able to see some interesting things in the markets, for example: the US30 had a strong upward movement, as well as the Nasdaq and the SP500, breaking their previous high and marking a new mark in that aspect, and then falling. There were a lot of PIPs that we could see that moved in a short time after the news, and even more when Powell went to the press conference and answered some questions.
A deeper corrective movement will probably be generated, I will be following it closely. In the case of Gold, well, it reached $2,600, a new high, but after hitting a new high it had a big drop, reaching 2,548, so there were interesting movements. And today it rose again towards 2591, and a new considerable drop could be expected, at least I think so. The reason?, because money will begin to flow in greater quantities now, and this makes me think that investors could begin to migrate to risk assets, rather than using gold as protection, therefore, when selling gold to invest in other assets, could continue to fall.
But it is just a speculation, in reality anything could happen, but based on the data I have, which is there for everyone, I can assume what I am sharing with you, without intending (I insist) that you assume it as an investment recommendation. .
But what happened to Bitcoin? The truth is, it had a good upward movement, but not as much as I thought could happen. I insist that we are going to see the most interesting movements in the coming days, and even weeks or months. Today we could see a good movement in general, the entire stock market has been rising, including Bitcoin, so I think it will be a trend that will remain.
You have to be patient, and this is where I say that it is always better to see it in the long term, because there the chances of losing decrease considerably, much more than if we focus on day trading, because the high volatility on a day where there has been News like this is great and losing is much easier.
We can only wait, the interest rate dropped, so I think the money in circulation will begin to increase and investments will be greater, which should drive prices up. It is just a personal opinion, always do your due research if you want to invest, which is at your own risk.
We might be seeing a massive bleed in the market in the coming days but well let's see how it eventually plays out at the end of the day. But I am sensing that a lot of people might lose out on this one actually