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Sue Ann Sim
Sue Ann Sim

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Market Insights

Weekend Macro

Published May 4, 2024
1 mins read

Article by Sue Ann Sim

  • Friday’s US data releases provided a big bullish boost to markets. A quick follow-on to the dovish FOMC and QRA which lifted prices off the lows just the day before.
  • Employment data was weaker than expected across the board which dampens the fear of rising inflation (Non-Farm Payrolls at 175k v 240k, Unemployment Rate at 3.9% v 3.8%, Average Hourly Earnings MoM was 0.2% v 0.3%).
  • The stars are aligning with both the Fed and Treasury leaning dovish plus weaker data, which reopens the path for rates cuts this year.
  • US 2-Year Yields collapsed from over 5% to almost 4.7%! Does this mark the end of the rampaging USD dollar rally?
  • The crypto markets loved this, especially the BTC spot ETFs which saw net inflows across the board totaling $378.3m. Even GBTC was posting a positive inflow number for the first time!

Trade Ideas:
Don’t fight the Fed. The Bullish ERKO Seagull strategy suggested on Thursday is already in-the-money.
If you think the bull market has resumed and would still like to buy BTC or ETH below the recent lows of 56.5k and 2814, you can still do so with Accumulators.

BTC Accumulators
(spot ref: 63.5k)
1. 35 weeks (27-Dec expiry)
Buy BTC at 52k every Friday as long as BTC spot price is under 73k.
2. 20 weeks (13-Sep expiry)
Buy BTC at 55k every Friday as long as BTC spot price is under 70k.

ETH Accumulators
(spot ref: 3,100)
1. 35 weeks (27-Dec expiry)
Buy ETH at 2500 every Friday as long as ETH spot price is under 3660.
2. 20 weeks (13-Sep expiry)
Buy ETH at 2700 every Friday as long as ETH spot price is under 3660.

*Please check in your trading chat for details and strategy customisations.

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