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Futures

Xrp's Surge Amidst Crypto-Friendly Optimism

2024-11-18

On Monday, November 18th, the crypto world is abuzz with excitement. Xrp, a prominent cryptocurrency, has been on a remarkable tear. Over the weekend, it catapulted to a three-year high, reaching more than $1.20. This upward trajectory is fueled by a surge in futures bets, with open interest for Xrp derivatives surpassing 2 billion on Sunday. The market is betting on further volatility in the price of this sixth-largest cryptocurrency with a $65 billion market capitalization.

Optimism and Regulatory Headwinds

The trend is being driven by optimism about easing regulatory headwinds. A crypto-friendly Trump administration may benefit tokens linked to US-based companies like Ripple Labs. Additionally, the forthcoming edition of Ripple's RL USD Stablecoin and the French Bank, CCT General's back Euros Stablecoin tied to Xrp could boost institutional adoption of the network. This positive sentiment is having a significant impact on Xrp's performance.

As for the potential Treasury Secretary, Scott Beset, the founder of Key Square Capital Management and a former money manager for George Soros, is leading the polling market. Howard Lutnick, the CEO of Tether custodian Canter Fitzgerald, is also in the mix. Former Federal Reserve Governor Kevin W is close behind, and Apollo Global Management CEO Mark is seeing his odds rise. The New York Times reports that President-elect Donald Trump is having second thoughts about his top two picks and is slowing down the selection process to interview the latter two candidates this week at Mar A Lago. Trump reportedly feels annoyed by Lutnick's constant presence and influence on the selection process for his own interests. However, Lutnick remains a top pick for tech entrepreneur Elon Musk, who is a close Trump adviser.

When it comes to other top agencies that could impact crypto, such as the Securities and Exchange Commission and Commodities Futures Trading Commission, Trump's picks are still unknown. Coin Eques Nick Day reports that as Republicans solidify their hold on the US House and Senate and the White House, crypto industry groups are more optimistic about passing some form of crypto legislation. Whether it's a new version of the Financial Innovation and Technology for the 21st Century Act (K A Fit 21), a Stablecoin bill, a Bitcoin strategic reserve bill, or something else entirely, the chances of passing through the legislative process and becoming law have increased dramatically. Kristen Smith, the CEO of the Blockchain Association, told Coin that industry groups are coordinating to get on the same page.

Impact on the Market

The rise of Xrp has not only caught the attention of investors but has also sparked discussions within the crypto community. Its performance is a clear indication of the changing dynamics in the crypto market. As more institutions show interest and regulatory uncertainties start to ease, Xrp is likely to continue its upward journey. This could have a ripple effect on other cryptocurrencies and the overall crypto ecosystem.

Investors are closely watching these developments, as they could potentially lead to significant changes in the way crypto is regulated and integrated into the mainstream financial system. The potential for increased institutional adoption and the passage of favorable legislation gives hope to the crypto industry that it is moving in the right direction.

While there are still uncertainties and challenges ahead, the current momentum surrounding Xrp and the crypto-friendly environment is a positive sign for the future of the industry. As we move forward, it will be interesting to see how these trends unfold and what impact they will have on the global financial landscape.

In the dynamic world of the stock market, Tuesday's opening saw little change in Dow Jones futures along with S&P 500 futures and Nasdaq 100 futures. This comes as Wall Street prepares for Nvidia's (NVDA) crucial earnings report scheduled for Wednesday. Nvidia stock faced a 1.3% sell-off on Monday due to news of overheating issues with its next-generation Blackwell processors in high-capacity server racks. The new Dow Jones stock is set to report earnings late Wednesday.

Unraveling the Stock Market's Intricacies with Dow Jones Insights

Pre-Earnings Report Scenario

Before Nvidia's earnings report, the stock market was in a state of anticipation. Palantir Technologies (PLTR) and Tesla (TSLA) showed significant divergence. Palantir tumbled nearly 7% from last week's all-time high, while Tesla rebounded 5.6% on news of President-elect Donald Trump's transition team's interest in a federal framework for self-driving vehicles. This week also brings key earnings reports from retailers Walmart (WMT) and Target (TGT). Additionally, investors are awaiting a lighter week of economic news, with a focus on housing data such as housing starts and building permits for October on Tuesday and existing home sales on Thursday. S&P Global's preliminary indexes for the manufacturing and services sector on Friday provide an early indicator of November's economic growth pace.

Nvidia, a major player in the AI space, has been a topic of great interest. Savvy investors can't get enough of this AI behemoth. Its performance and earnings report will likely have a significant impact on the market. On Monday, the Dow Jones Industrial Average fell 0.1%, while the S&P 500 gained 0.4% and the tech-heavy Nasdaq advanced 0.6%. Among the best companies to watch are Broadcom (AVGO), Costco Wholesale (COST), Deckers Brands (DECK), and FanDuel parent Flutter Entertainment (FLUT). Dow Jones components like Amazon.com (AMZN), Apple (AAPL), Microsoft (MSFT), and Walt Disney (DIS) also made notable moves. Disney slipped 1.3% on Monday, snapping a nine-day win streak and is building a cup base.

Industry Group and IPOs

This industry group and 4 IPOs have polished 20 'perfect' gems. Ahead of Tuesday's opening bell, Dow Jones futures, along with other major futures, were little changed vs. fair value. The 10-year U.S. Treasury yield ticked lower to 4.41%, and oil prices rallied more than 3%, with West Texas Intermediate futures settling around $69.20 a barrel. Now is an important time to read IBD's The Big Picture column. After Monday's session, be sure to check out today's The Big Picture and updated exposure level. On "IBD Live" show, the team discussed the current trading conditions. IBD MarketSurge's "Breaking Out Today" list is an essential resource for daily breakouts, showing MarketSurge Growth 250 stocks breaking out past buy points. The MarketSurge "Near Pivot" list shows more stocks nearing buy points in bases.

Among Magnificent Seven stocks, Alphabet (GOOGL) rallied 1.6% on Monday, still below a 182.02 buy point in a cup with handle after a short-lived breakout attempt. Meta Platforms (META) remains below its 50-day moving average line, a key level to watch, and has formed a flat base with a 602.95 buy point. Among Dow Jones components in the Magnificent Seven, Amazon stock declined 0.5% on Monday, barely above a 201.20 buy point. Apple shares closed above their 50-day line, continuing to consolidate after the October 31 earnings report. Microsoft shares rose 0.2% on Monday, still below the 50-day line, and its RS line remains near its lows.

Stock Market Highlights

These are four stocks in or near buy zones in today's stock market. Ferrari (RACE) has a 498.23 flat base buy point. Costco Wholesale (COST) has a 923.83 flat base buy point. Broadcom (AVGO) has a 186.42 flat base buy point. Deckers Brands (DECK) has a 172.57 handle entry buy point. These stocks offer potential investment opportunities in the current market environment.

To stay informed and make informed investment decisions, it is crucial to follow resources like IBD. It provides various tools and lists such as IBD 50, Big Cap 20, and Stocks Near A Buy Zone to identify bullish patterns and buy points. By following these, investors can better navigate the stock market and potentially capitalize on market trends.

The President-elect Donald Trump has made a significant promise to weaken the U.S. dollar in an effort to enhance the country's exports globally. However, a rather unexpected phenomenon has occurred since the Election Day. The U.S. dollar has actually appreciated by almost 3%, contrary to what his policies might suggest.

Why the U.S. Dollar is Gaining Strength

The U.S. dollar is getting stronger due to the fundamental forces of supply and demand. People, both within the country and around the world, have a growing appetite for dollars. They are actively buying dollars and, at the same time, selling other currencies as their demand for those currencies wanes.One crucial factor contributing to this is inflation. As Paul Ashworth, the chief U.S. economist at Capital Economics, pointed out, the October inflation data came in stronger than expected. When inflation persists, the Federal Reserve takes measures to combat it by keeping interest rates high. And when interest rates are high, investors can earn more money. This attracts them to hold dollars and seek the benefits of higher returns.Another aspect making the U.S. dollar look good is the relative performance of other currencies. In Canada, for instance, their economy is showing signs of slowing down. As a result, the Canadian dollar has weakened as the central bank has been more aggressive in cutting interest rates. This showcases how the strength of one currency is often influenced by the performance of others.

Trump's Policies and Their Dollar Implications

Most of the policies that President-elect Trump has discussed, especially from an economic perspective, have a positive impact on the dollar. Despite his stated intention to weaken the dollar, his spending plans are likely to increase the deficit. This means the government will need to borrow more money, and investors are eager to get a share of these funds by holding dollars.Tariffs also play a significant role. As Eric Winograd, the chief economist at AllianceBernstein, explained, if tariffs are imposed, the U.S. will likely import less. With fewer goods being imported from foreign countries, there is less demand for foreign currencies to pay for those goods. Consequently, the demand for those currencies falls, and they weaken. This, in turn, leads to the appreciation of the U.S. dollar.

Market Reactions and the Dollar's Upward Move

Markets are well aware of these factors and have already started to anticipate the implications. This anticipation has led to the U.S. dollar beginning its upward movement. Investors are responding to the potential economic changes and adjusting their portfolios accordingly. The dollar's strength is not just a short-term phenomenon but is likely to have a lasting impact on global financial markets.In conclusion, the U.S. dollar's current trajectory is a result of a complex interplay of various factors. While President-elect Trump's intentions may differ from the actual market movements, the economic realities are shaping the dollar's value. As the world continues to evolve, these dynamics will remain crucial in determining the future of the U.S. dollar and its role in the global economy.