The self - fulfilling prophecy is a fact in the market. When all traders start to buy something with an expectation that the price will hit a certain Fibonacci, resistance or psychological level, the price starts heading in that direction. One of the most popular examples in the recent history might be the price of Gold. Whoever you talk to, the expected take - profit price is either $3000 or $3500 as the bullish trend is happening for Gold.
Though the long - term prophecies tend to come true, the shorter periods may not be as well - timed as the longer ones. Since the first indication that the central banks can no longer use the narrative that "the inflation is the worst enemy, we have to shrink the labor market and follow quantitative tightening", the dynamics of the markets have been highly volatile.
There are still lots of fearful investors who do not withdraw their money from the government bonds or deposit accounts whereas there are stock / crypto investors who have been in the markets and waited too long already.
The strong DXY is a big killer for the market sentiments. Whenever the majority turned bullish, something terrible happened in a corner of the world. Currently, the global risks are hitting the markets very hard and almost all investors are at a loss unless they have open short positions or other types of hedge instruments.
The levels above 100.7 indicate an attempt to stay in the safe harbours such as cash USD or the short - term U.S. bonds. Every time we tried to close around 100, the price recovered in a V shaped formation.
The volatility of the volatility index shows the expectation of World War 3 rather than something different. The global conflict has been ascending and there is no sign of normalization. While the current state is tense, bloody, and extremely volatile, taking unnecessarily big positions may not be a good idea even though Uptober has officially started.
Gold is doing well, Silver is trying to catch up with the performance of Gold but crypto may not be able to stay strong if the negative news keeps coming around the world. It is time for me to buy some cheap and / or oversold assets with huge expectations from 2025; not Q4 2024 anymore.
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Posted Using InLeo Alpha
