Thanksgiving Day in the cryptocurrency market

27 nov 2020

In yesterday's review, we warned that a thin market in the face of a significant number of bubbles in financial markets could provoke spikes in volatility or even flash crashes.

If you look at the results of Thursday for the cryptocurrency market, it seems that we were not so far from the truth. Ripple lost about 25% (!) during a day, Bitcoin and Ether about 15%.

And while other bubbles are still with us, ranging from Tesla and Nio to the US stock market in general, it is quite possible that the markets are starting to feel shortage of "fools" with all the ensuing bubbles.

Among other news, it is worth noting the extension of restrictive measures by Germany until December 20 against the background of a record number of cases, which exceeded 30K per day. Germany did not tighten the measures, but the experience of the same France shows that with a sufficient level of severity it takes only 3 weeks to take the situation under control.

Consumer confidence, meanwhile, is declining in both France and Germany.

Exxon Moblie is gearing up for tough times. They revised their own estimates of oil prices in the next decades by 11% -17%. The company expects the damage from the pandemic to persist for much of the next decade.

Britain and the EU continue to negotiate a trade agreement. So far, traditionally, it has been unsuccessful, exchanging mutual threats. European Commission President Ursula von der Leyen said Thursday that the EU is ready for the possibility of Britain leaving the bloc without a new trade agreement. Britain in turn said that they did not need a deal "at any cost". Nevertheless, according to the participants in the negotiation process, its end is close. According to one information about the success of the negotiations will be announced at the weekend, according to the other - next week.

Let us recall our trading plan for this case. We wait for positive news, being long in the pound, after that we wait 1 or 2 days to work out the news, fix the profit on the long position and simultaneously open the short one.