TRENDING:

XAU/USD

Silver

Keeping it real

Michael Berman, PhD Signal2Noise (S2N) News

S2N spotlight

I don’t know why, but yesterday I was stuck on this simple idea. I had no idea it would produce the fruits it has. If I had invested 50% in the S&P 500 market cap index (traditional one) and 50% in the S&P 500 equal-weighted index and rebalanced the portfolio once a year. I think the results speak for themselves.

In case you think that this was just a lucky 25 years, I ran the same analysis over 50 years, and guess what. There is more outperformance in this strategy than 99% of the active managers over long periods of time, and the best part is it's free—no fund manager fees.

S2N observations

Naturally the last few days have been dominated by the war in the Middle East. The only asset class that seems to be experiencing any real volatility is oil.

USDC is definitely becoming a serious competitor to Tether. I saw some legislation was passed in the US overnight relating to stablecoins. It sure seems these guys will continue to be the grease of the crypto world's engine. I think this is a fertile ground for stat arb traders, an area I want to spend more time on.

S2N screener alert

After registering a very weak day in the shekel. The Israeli shekel registered its biggest 1-day Z-score (7.64) with a 3.62% daily return. [this alert is a day old, but I wanted to share it as it is a biggie.

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.