By Graham Summers, MBA | Chief Market Strategist
Stocks got saved over the weekend when President Trump announced that the U.S. would be moving forward with its plans for a “Crypto Reserve” that would own multiple cryptocurrencies.
The specific post from Truth Social is below:
This post served several purposes for risk assets. The most significant are:
- It ignited a sharp rally in crypto currencies.
- It served as a kind of “Trump Put” on risk assets.
Regarding #1, the crypto space has been in decline for the last two months largely as investors became disillusioned with the progress the Trump administration was making in introducing crypto-based government funds. Bitcoin, the largest and most liquid crypto currency, had taken out critical support and was on the verge of erasing its entire post-election gains.
President Trump’s post on Truth Social reversed all of this, sending Bitcoin back into its former range. In the simplest of terms, crypto is back on the administration’s list of priorities. The next major bull run in crypto coins is likely here.
Which brings us to #2 in our list: President Trump’s post on Truth Social served as a kind of “Trump Put” on risk assets.
One of the hallmarks of Trump’s first term was his near constant tweeting/ talking about stocks any time the markets were in danger of breaking down in a major way. Thus far in Trump’s second term, these interventions have been absent even as stocks broke below their bull market trendline last week.
President Trump’s post on Truth Social was a clear signal that the “Trump Put” is back. In the very simplest of terms, Trump is watching the markets and intervening when risk assets get into trouble.
The big question for investors is… will this work? Up until Trump intervened the markets were breaking down in a Big way, with some risk assets crashing 20%+ in a matter of days.
Put simply, are stocks about to Crash?!?
To figure that out, I rely on certain key signals that flash before every market crash.
I detail them, along with what they’re currently saying about the market today in a Special Investment Report How to Predict a Crash.
To pick up a free copy, swing by:
Best Regards
Graham Summers, MBA
Chief Market Strategist
Phoenix Capital Research
