Bad News Is Good News — Week in Review
For the past week, U.S. equities have moved in a fairly tight range. Meanwhile, bitcoin broke its May high and reached roughly $86,000, continuing its recovery from summer lows near $58,000. Alex Thorn highlighted bitcoins first close above its 50-week moving average in 45 weeks. Who, at this point, doubts that the bear market is behind us？ Benjamin Cowen admitted his call was wrong. He had expected an October cycle low and no break of the May high this year. Instead of moving the goalposts, he owned the miss. In a bull market, even bad news is good. For example, Wednesday‘s correction elicited the observation that open interest had been flushed, removing “unhealthy” leverage without much price damage. Bitcoin ETF flows were positive, with Eric Balchunas wondering whether the U.S. Treasury’s troubles were helping. Bad news is good？ The macroeconomic picture is largely the same as last weeks. Rising long-term Treasury yields prompted another round of debate over the cause, and over whether the higher rates are good or bad. Perhaps it is bullish because “the market expects tremendous growth, equities to skyrocket and investors are demanding higher returns from bonds.” Others concluded that “there is little that is benign about the increase in
