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Bitcoin surges over $16k

BTC/USD (Bitcoin versus USD)
Source:  MT4 (November 12, 2020)

Bitcoin prices continue to break out to mulit-year highs. Prices are poised to test the all-time high seen in December of 2017 near 19,270. Support is seen near the prior breakout level at 13,900. Momentum is accelerating higher as the relative strength index (RSI) continues to rise with an upward sloping trajectory. The daily RSI is fast approaching the highs seen in 2019 and will need to accelerate above that level to avoid a divergence. 
 

TAKEAWAYS


•    Bitcoin extends gains above $16,300
•    Stocks Slide on Rising COVID cases
•    Trump Refocusses on FOX
•    US Jobless Claims Fall, CPI is Unchanged
•    DAY AHEAD: Eurozone GDP, US Producer Price Index
 

GURU WISDOM


“The trend is your friend” – Martin Zwieg
 

MARKETS


US stocks moved lower on Thursday as traders appeared to take profits in many of the ‘value’ stocks that have done well this week. The Dow Industrials underperformed while the Nasdaq outperformed in a down tape. All sectors in the S&P 500 index were lower, led by Energy, Healthcare was the best performing sector. The VIX volatility index popped rising back up to the 26-handle. Oil prices moved lower, following a larger than expected build in oil inventories. 

President Trump’s campaign is in the process of pursuing legal attacks on different states in an effort to block officials from certifying the results. It also appears that President Trump is beginning to discuss trying to develop his own media network using all of his contacts from Make America Great Again (MAGA). 

Covid cases continue to rise across the US and the globe and this is beginning to put downward pressure on stock prices. However, it did little to dampen appetite for Bitcoin, which is acting as investors preferred asset during risk-on and risk-off days, with the latest catalyst being an endorsement from billionaire hedge fund manager Stan Drukenmiller. 
 

CPI is Unchanged 


The US Consumer Price Index was unchanged in October, reflecting one of the tamest periods in 2020 for inflation. This follows a 0.2% advance in September. On a year-over-year basis, CPI rose 1.2%. Expectations had been for headline CPI to rise by 0.1% month over. Declining gasoline and medicare costs weighed on inflation. 
 

Jobless Claims Continue to Fall


US Jobless claims continued to decline slipping to 709,000 for the week ended November 7, down from 757,000 the week before according to the US Labor Department. Expectations had been for new claims to come in at 740,000. This marked the fourth consecutive week of declining jobless claims. 
 

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