Reflecting On Last Week
Halloween Was Scary—But Not Because of the Jack-o’-Lanterns
October 31 proved more trick than treat for investors as a tech-led selloff struck the S&P 500 and Nasdaq, marking their sharpest one-day drop since early September and erasing what could have been a bullish October. Final monthly figures: S&P 500 down 0.99%, Nasdaq down 0.52%, and Dow down 1.34%
Q3 Brings Mixed Fortunes for Tech Giants
The ‘Magnificent Seven’ tech giants—Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta, and Tesla—saw diverging performances in Q3, with the market responding unfavorably to earnings from Apple, Microsoft, and Meta, while Tesla, Alphabet, and Amazon received positive reactions. Apple is now viewed as transitioning from growth to stability, maintaining its market dominance, while other firms’ heavy investments in AI have raised investor concerns over costs and uncertain short-term returns. (NASDAQ)
Bitcoin Nears All-Time High as Election Day Approaches
Bitcoin surged past $73,000 on Tuesday, reaching its highest level since March and nearing its all-time high of $73,798. The rally follows a spike in trading activity ahead of the U.S. presidential election, with both candidates, Donald Trump and Kamala Harris, recently signaling openness toward crypto. Increased interest in spot Bitcoin ETFs, which have attracted nearly $4 billion in net inflows since early October, is also driving demand. (Investopedia)
The Week Ahead: Events to Watch
This week, all eyes are on the U.S. presidential election, with a close race between Donald Trump and Kamala Harris drawing global attention. Additionally, the Federal Reserve will announce its interest rate decision on Thursday, with markets expecting a 25 basis-point cut. Key U.S. data releases include ISM Services PMI, Michigan consumer sentiment, factory orders, and Q3 productivity figures. Earnings season continues, with reports from large-cap companies like Qualcomm, CVS, and Toyota. Internationally, central banks in the UK, Brazil, and Australia are set for rate decisions, while Europe and China release critical trade and production data, adding to a pivotal week for global markets.
Mental Mastery Message of the Week
“Focus on the process, not the outcome. A good trade isn’t defined by profit or loss, but by how well you followed your plan. This shift in focus is what separates the amateur from the professional.” — Mark Douglas
Levels On Our Radar This Week:
S&P 500
The S&P 500 recently closed below the weekly bullish fair value gap, reversing a key support level. We’re now approaching a prior support zone that sparked the last upward move, but with the upcoming election, technicals may take a backseat as market direction hinges on news impact.
XAU/USD (Gold)
Gold has finally pulled back after a stretch of nonstop bullish expansions, creating a bearish fair value gap on the daily timeframe. In the coming days, we’ll closely monitor this level to see if it signals a retrace to the weekly bullish level or if price first moves into the weekly fair value gap, where we’ll be watching for potential buying opportunities.
EUR/USD
After four weeks of bearish movement, EUR/USD has found some relief. The trendline support zone highlighted last week provided a slight bounce, while the weekly bearish FVG also acted as a resistance level. This week will be pivotal in determining which level holds stronger, offering insight into the likely direction of price movement.
