Hey traders, Ezekiel here. The mood has flipped hard, fear turned into full-blown risk-on, and the charts are feeling it. Here’s what’s driving the melt-up and how to keep your head while it runs.
- Today’s market mayhem. S&P 500, EUR/USD, Bitcoin, and XAU/USD at a glance
- Stocks pushed to fresh highs as the Trump-Xi trade truce and easing yields powered a risk-on week
- Bitcoin tapped $86K and sentiment held in greed, the post-hike rally has legs
- Why a calmer macro backdrop is giving both stocks and crypto room to run
- A dead-simple 2-hour-a-day strategy from a 25-year trader, in our latest video
WEEKLY MARKET MAYHEM🔥
With the Fed behind us and trade tensions cooling, the tape turned green. Here’s the board. 📈
Stocks Pushed to Fresh Highs as the Trump-Xi Truce Calmed the Tape.
A week after swallowing a rate hike, Wall Street went risk-on. The S&P 500 climbed about 1.2% to 7,743.41, and the Dow snapped a three-week losing streak as Treasury yields slipped back from their highs and oil eased. 📈
The spark was geopolitical. President Trump hosted Xi Jinping and extended the US-China trade truce to January 10, pulling a major overhang off the market. Consumer sentiment ticked higher too, and suddenly the path of least resistance was up. 🤝
The dollar, though, stayed firm. With the Fed in “higher for longer” mode, EUR/USD drifted down toward 1.135, so this was very much a stocks-and-crypto risk rally rather than a dollar-down one. 💵
🤔 Asia Forex Mentor Insights
Notice what changed, the macro fog lifted. The Fed decision is done, the trade truce is extended, and when the big unknowns clear, markets are free to trade momentum and fundamentals again. That’s the backdrop that lets rallies breathe.
For EUR/USD, don’t confuse risk-on with dollar weakness, a tightening Fed keeps the greenback bid, so the euro stays heavy even as stocks rip. The trade is to respect the trend in each market separately rather than assuming everything moves together. 📊
Bitcoin Tapped $86K as the Post-Hike Rally Kept Running.
Crypto kept its foot on the gas. Bitcoin extended the post-hike surge, pushing to a new local high around $86,000 midweek before settling near $84,000, leaving it up roughly 3.4% on the week. 🚀
This is momentum feeding on itself, once $80K flipped back to support, dip-buyers stepped in and the path of least resistance became higher. The calmer macro tape, softer yields and the trade truce, only added fuel. 🟢
Sentiment stayed hot but came off the boil slightly. The Fear & Greed Index sits at 74, firmly in greed, just below the extreme-greed readings from the back of last week. 💰
🤔 Asia Forex Mentor Insights
Trends in motion tend to stay in motion, and this one has real structure behind it, a reclaimed $80K floor and a fresh local high. Respect that, the bias is up while those levels hold. 🧠
That said, greed in the 70s means the easy money has already been made and the crowd is leaning long. The play isn’t to chase the breakout, it’s to buy pullbacks toward support with defined risk. Let the ones chasing $86K candles provide your liquidity, you want entries near $80K, not near the highs. 📊
MEMES OF THE DAY 🤣
Diamond hands, allegedly 💎🔥
Still waiting for that perfect entry 💀
