The probability of a rate hike surged to 91% for $BTC , yet U.S. stocks opened with a whopping $800 billion added to market value!
Hot CPI data didn’t scare off the bulls.
Instead, funds rushed back in at the open!
Interest-rate headwinds are already on the table.
But the market has started trading the idea that “bad news just can’t push it down anymore”!
After the CPI release, expectations for a September Fed rate hike briefly rose to about 91%, and the 2-year Treasury yield moved higher as well. Yet after the U.S. market opened, overall market capitalization actually increased by about $800 billion. Normally, higher rate expectations should weigh on valuations, but today money clearly chose to buy risk assets first.
What’s most worth watching in this kind of move is “bad news exhaustion”: if yields stay elevated while stocks still refuse to sell off, it means buying support is stronger than the market expected. But the next question is whether the rally can continue, especially whether tech stocks and other high-beta names can hold the opening strength into the close.
Even with a 91% chance of a rate hike, this kind of tape can’t be judged by macro negatives alone.
When bad news just can’t push the market down, that’s often when the bulls really start seizing the momentum!
Click the card below and go straight in! 👇
$ETH $ZEC
Hot CPI data didn’t scare off the bulls.
Instead, funds rushed back in at the open!
Interest-rate headwinds are already on the table.
But the market has started trading the idea that “bad news just can’t push it down anymore”!
After the CPI release, expectations for a September Fed rate hike briefly rose to about 91%, and the 2-year Treasury yield moved higher as well. Yet after the U.S. market opened, overall market capitalization actually increased by about $800 billion. Normally, higher rate expectations should weigh on valuations, but today money clearly chose to buy risk assets first.
What’s most worth watching in this kind of move is “bad news exhaustion”: if yields stay elevated while stocks still refuse to sell off, it means buying support is stronger than the market expected. But the next question is whether the rally can continue, especially whether tech stocks and other high-beta names can hold the opening strength into the close.
Even with a 91% chance of a rate hike, this kind of tape can’t be judged by macro negatives alone.
When bad news just can’t push the market down, that’s often when the bulls really start seizing the momentum!
Click the card below and go straight in! 👇
$ETH $ZEC
