November 13 REX Wire Market Outlook

Welcome to a new week, and a new REX Wire Market Outlook, where we seek to make the dry and impenetrable events of global markets entertaining and easy to understand.

First up, stonks. The S&P has had a super strong run. Following a little correction last week, it has now pushed up above that all-important local resistance at 4,400, opening the way to further gains.

Bonds didn't have such a good time of it. Yields on 30-year treasuries soared as the US struggled to find buyers for its $24 billion offering.

There were multiple reasons for the weak demand. One unusual factor that may have contributed to poor liquidity was a huge Russian ransomware attack that left the largest bank in the world unable to trade treasuries. The Industrial & Commercial Bank of China ultimately had to settle trades by sending a courier across New York with a USB stick.

The dollar has bounced from support at 105 but may have made a lower high at 106. We're watching to see whether it will drop back through that support, opening the way for further gains in risk assets. Perhaps all of this added to Jay Powell's stress levels...

Bitcoin Pauses, Alts Soar

Bitcoin held the $37,000 line as last week closed, and is currently still trading just above that, taking a few days to consolidate after some incredible price action recently.

Alts are a different story. ETH had an outstanding week as the news dropped that BlackRock intends to launch a spot ETH ETF, driving the price as high as $2,100. Many alts have posted multiple double-digit gains in recent days. One of the best performers has been FTT, which has gained 200% in the last week on hopes of a possible relaunch of FTX.

The total crypto market cap has broken decisively out of its consolidation zone below $1.3 trillion, meaning further upside is far more likely. However, with BTC still in the spotlight, we're probably not in line for a true alts season for some time yet. There is some speculation that approval for multiple ETFs could come this week, though January is still the preferred timeline for most analysts.

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