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Sevens Report Technical Analyst Tyler Richey Laid Out The Case For A Looming Pullback For Bitcoin

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A Looming Pullback For Bitcoin: Strengthen your market knowledge with a free trial of The Sevens Report.

Bitcoin Tops $70,000—But Is This Rebound Here To Stay?

Sevens Report technical analyst Tyler Richey laid out the case for a looming pullback for bitcoin as its relative strength index, a tool commonly used by technical strategists to measure the sustainability of a sharp rally or selloff, sits at its lowest level since early February, indicating a potentially “frothy and overextended” market for bitcoin.

Such technical analysis can be “hit-or-miss” for crypto assets, Richey added, considering crypto prices can behave far more erratically than those of other asset classes like stocks and physical commodities, but declining technical backing coupled with elevated prices “should not be sustainable forever,” suggesting $52,000 as a potential first true spot of resistance for bitcoin based on historical data, a backstop nearly 30% below bitcoin’s Monday price.

Also, click here to view the full Forbes article published on March 25th, 2024. However, to see the Sevens Report’s full comments on the current market environment sign up here.

Join hundreds of advisors from huge brokerage firms like Morgan Stanley, Merrill Lynch, Wells Fargo Advisors, Raymond James, and more… To start your quarterly subscription and see how The Sevens Report can help you grow your business, click here.

Economic data this week has not been positive for stocks

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Economic data this week has not been positive for stocks: Tom Essaye Quoted in Blockworks

Bitcoin holds below $70k on disappointing inflation reads this week

“Economic data this week has not been positive for stocks and while it hasn’t invalidated any of that bullish mantra, it has weakened it,” Tom Essaye, founder of Sevens Report Research, said. 

Also, click here to view the full Blockwork article published on March 15th, 2024. However, to see the Sevens Report’s full comments on the current market environment sign up here.

If you want research that comes with no long term commitment, yet provides independent, value added, plain English analysis of complex macro topics, then begin your Sevens Report subscription today by clicking here.

To strengthen your market knowledge take a free trial of The Sevens Report.

Join hundreds of advisors from huge brokerage firms like Morgan Stanley, Merrill Lynch, Wells Fargo Advisors, Raymond James, and more! To start your quarterly subscription and see how The Sevens Report can help you grow your business, click here.

Money Supply and Stocks: Is There a Disconnect?

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Money Supply and Stocks: Is There a Disconnect? Start a free trial of The Sevens Report.

What’s in Today’s Report:

  • Money Supply and Stocks: Is There a Disconnect?
  • ISM Services Index Takeaways (Slightly Dovish)

Futures are rebounding with global shares amid positive stimulus news out of China and mostly better-than-feared economic data overseas ahead of several important catalysts today.

Overnight, China’s State Planner and the head of the PBOC both reiterated their commitment to achieving 5% growth in 2024 which is supporting a rebound in risk assets as investors gain confidence in the prospects of a stabilizing Chinese economy.

Eurozone Retail Sales fell -1.0% vs. (E) -1.4% helping ease concerns of a sharp slowdown in the EU economy which is adding to the risk-on money flows this morning.

Looking into the U.S. session, focus will be on economic data early today starting with the: ADP Employment Report (E: +150K job adds) followed by the JOLTS release (E: 8.9 million job openings).

From there attention will turn to Capitol Hill where Fed Chair Powell will begin his semi-annual testimony at 10:00 a.m. ET. The Fed’s Daly (12:00 p.m. ET) and Kashkari (4:15 p.m. ET) will also speak today but Powell will be firmly in the spotlight as investors look for clues as to whether the FOMC plans to begin rate cuts in the second quarter (market positive) or wait until H2’24 (market negative).

Join hundreds of advisors from huge brokerage firms like Morgan Stanley, Merrill Lynch, Wells Fargo Advisors, Raymond James, and more! To start your quarterly subscription and see how The Sevens Report can help you grow your business, click here.

$57,691 Is The Next Key Resistance Level To Watch For Bitcoin

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The Next Key Resistance Level To Watch For Bitcoin: Tom Essaye Quoted in Barron’s on MSN

Bitcoin Falls Before Fed Minutes and Nvidia Earnings. Where Prices Could Go Next.

“There is a well-defined uptrend channel in place that leaves the path of least resistance higher,” said Tom Essaye, the founder of Sevens Report Research. “$57,691 is the next key resistance level to watch” for Bitcoin, Essaye noted, referencing a technical indicator that flashed this technical level and adding that “we expect to at least see some hesitation as prices move into the mid $50,000s.”

Also, click here to view the full Barron’s article published by MSN on December 8th, 2023. However, to see the Sevens Report’s full comments on the current market environment sign up here.

If you want research that comes with no long term commitment, yet provides independent, value added, plain English analysis of complex macro topics, then begin your Sevens Report subscription today by clicking here.

To strengthen your market knowledge take a free trial of The Sevens Report.

Join hundreds of advisors from huge brokerage firms like Morgan Stanley, Merrill Lynch, Wells Fargo Advisors, Raymond James, and more! To start your quarterly subscription and see how The Sevens Report can help you grow your business, click here.

The Reason Stocks Dropped Was Because The CPI Report

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The Reason Stocks Dropped Was Because The CPI Report: Tom Essaye Quoted in Blockworks

Bitcoin breaks $52k, outperforms stocks to new 2024 high

After markets digested the CPI print in the US, inflation data from the United Kingdom came in lower than expected, showing prices are holding steadily at 4% higher year-over-year. The more positive inflationary data helped stock futures rise ahead of Wednesday’s open, Tom Essaye, founder of Sevens Report Research said.

It’s important to realize that while the hot CPI was the catalyst for yesterday’s stock and bond market declines, stocks didn’t decline because CPI implied inflation was bouncing back,” Essaye said. “Instead, the reason stocks dropped was because the CPI report was the first data point in 2024 to not confirm these fantastically positive assumptions that have driven this rally.”

Also, click here to view the full Blockwork article published on February 14th, 2024. However, to see the Sevens Report’s full comments on the current market environment sign up here.

If you want research that comes with no long term commitment, yet provides independent, value added, plain English analysis of complex macro topics, then begin your Sevens Report subscription today by clicking here.

To strengthen your market knowledge take a free trial of The Sevens Report.

Join hundreds of advisors from huge brokerage firms like Morgan Stanley, Merrill Lynch, Wells Fargo Advisors, Raymond James, and more! To start your quarterly subscription and see how The Sevens Report can help you grow your business, click here.

Bitcoin ETF Primer (For Discussions With Clients)

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Bitcoin ETF Primer: Start a free trial of The Sevens Report.

What’s in Today’s Report:

  • Bitcoin ETF Primer (For Discussions With Clients)
  • Why the Hot CPI Report Didn’t Cause  A Larger Pullback

Futures are modestly lower following an increase in geopolitical tensions and subsequent 4% rally in oil.

The U.S. launched multiple missile strikes against Houthi targets in Yemen in response to the recent attacks on commercial ships in the Red Sea and that’s increasing concerns about a broader conflict in the region.

Today focus will stay on inflation via PPI (E: 0.2% m/m, 1.3% y/y) and Core PPI (E: 0.2% m/m, 2.0% y/y) and if we see hotter than expected numbers, look for some additional pressure on stocks.  We also have one Fed speaker today, Kashkari at 10:00 a.m. ET, although he shouldn’t move markets.

Additionally, today marks the start of earnings season and we get reports from major banks and a healthcare company today.  Reports we’re watching today include:  JPM ($3.73), BAC ($0.69), UNH ($5.98), BLK ($8.84), WFC ($1.16), C ($0.73), BK ($1.12).

Join hundreds of advisors from huge brokerage firms like Morgan Stanley, Merrill Lynch, Wells Fargo Advisors, Raymond James, and more! To start your quarterly subscription and see how The Sevens Report can help you grow your business, click here.

The S&P 500 Is Starting 2024 Trading At A Very Lofty 19.5x Valuation

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The S&P 500’s Lofty Valuation: Tom Essaye Quoted in Blockworks

Bitcoin is trading on ETF news, but analysts caution on macro headwinds

“The S&P 500 is starting 2024 trading at a very lofty 19.5x valuation and while I’m not going to say that valuation is unjustified, I will say that valuation makes several key, positive assumptions about critical market influences in the coming year,” said Tom Essaye, founder of Sevens Report Research.

“And how reality matches up with those assumptions will determine whether stocks extend the rally (and the S&P 500 hits new highs and makes a run at 5,000) or gives back much of the Q4 Santa Claus rally.”

Also, click here to view the full Blockworks article published on January 2nd, 2024. However, to see the Sevens Report’s full comments on the current market environment sign up here.

To strengthen your market knowledge take a free trial of The Sevens Report.

Join hundreds of advisors from huge brokerage firms like Morgan Stanley, Merrill Lynch, Wells Fargo Advisors, Raymond James, and more! To start your quarterly subscription and see how The Sevens Report can help you grow your business, click here.

Important (and still undecided) Questions About Economic Growth

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Markets Have Priced In The Dovish Pivot: Tom Essaye Quoted in Blockworks

Bitcoin inches higher after outperforming stocks this year

“Looking forward, we can expect markets to get back to ‘normal’ next week as we start a new year and answer some pretty important (and still undecided) questions about economic growth, actual vs. expected Fed policy, and earnings,” Tom Essaye, founder of Sevens Report Research, said. 

Also, click here to view the full Blockworks article published on December 29th, 2023. However, to see the Sevens Report’s full comments on the current market environment sign up here.

To strengthen your market knowledge take a free trial of The Sevens Report.

Join hundreds of advisors from huge brokerage firms like Morgan Stanley, Merrill Lynch, Wells Fargo Advisors, Raymond James, and more! To start your quarterly subscription and see how The Sevens Report can help you grow your business, click here.

Treasury Yields To Continue To Drive Short-Term Trading

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Treasury Yields To Continue To Drive Short-Term Trading: Tom Essaye Quoted in Barron’s

Stocks Extend Rally After Best Week of the Year

“Today there are no notable economic reports and just one Fed speaker, [Lisa] Cook (11:00 a.m. ET), so look for Treasury yields to continue to drive short-term trading,” writes Sevens Report Research’s Tom Essaye.

The 10-year Treasury yield ticked higher on Monday but was still at 4.614%. The 10-year yield was trading around 5% in October, which weighed on rate-sensitive stocks.

“If the 10-year yield continues to decline then the S&P 500 can extend last week’s rally.”

Also, click here to view the full Barron’s article published on November 6th, 2023. However, to see the Sevens Report’s full comments on the current market environment sign up here.

It’ll be Very Hard for This Market to Rally

If you want research that comes with no long term commitment, yet provides independent, value added, plain English analysis of complex macro topics, then begin your Sevens Report subscription today by clicking here.

To strengthen your market knowledge take a free trial of The Sevens Report.

Join hundreds of advisors from huge brokerage firms like Morgan Stanley, Merrill Lynch, Wells Fargo Advisors, Raymond James, and more! To start your quarterly subscription and see how The Sevens Report can help you grow your business, click here.

Tom Essaye Quoted in Blockworks on April 20th, 2023

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Bitcoin, Ether Hover Below Key Levels While Volatility Dips

“The VIX is trading at the lowest levels since the S&P 500 hit its standing all-time high in the early days of 2022,” Tom Essaye, founder of Sevens Report Research, said. “It will be hard to believe the market is poised to casually cruise towards new record highs from here,” he added. “I.e., the bottom of the bear market is not in.” Click here to read the full article.