TRENDING:

XAU/USD

Silver

Cash squeeze

Michael Berman, PhD Signal2Noise (S2N) News

I am currently in Melbourne, where I will be speaking at the Australian Technical Analyst Association’s annual conference.

S2N spotlight

The talk has been about the sharp selloff in regional banks in the US, with the index down over -6%.

In the chart below you can see some of the market squeeze for liquidity triggered by some bad loans in the regional banking space. The Standing Repo Facility (SRF) red line spiked to $8 billion. This facility is the Fed’s emergency window for banks and primary dealers to borrow money when money is tight. It certainly seems like something to keep an eye on.

S2N observations

10-year US Treasury yields have just dipped below 4%.

MicroStrategy (actually just Strategy) bought 220 Bitcoin at a price of $123,561 a few days ago, taking their average cost of purchase to $73,000. Saylor will keep buying as long as he finds enough suckers to buy his financially engineered house of cards. I have been recommending shorting MicroStrategy and going long Bitcoin for over a year now. I am pretty sure it won’t be all that long before Michael Saylor is finally recognised as the charlatan he is. I wouldn’t be so unkind with my views if he wasn’t so reckless with his cheerleading of such a highly speculative asset.

S2N screener alert

Gold is now the most overbought it has ever been in history on a monthly basis using the RSI (relative strength indicator) at 91.6

Yesterday gold made another forceful move up with a 4+ Z-score thrust for only its 84th time in its history. I am taking profit with 10% of my gold holdings, purely from a short-term trading perspective.

S2N performance review

S2N chart gallery

S2N news today

Author

Michael Berman, PhD

Signal2Noise (S2N) News

Michael has decades of experience as a professional trader, hedge fund manager and incubator of emerging traders.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.