Sharktooth

INVESTMENT CONTEXT

U.S. stocks dropped sharply on growing fears of recession. S&P 500 dropped 3.27% on June 16, recording its steepest weekly decline (more than 6%) since March 2020
To calm the fears of a new debt crisis in EU, the ECB is reportedly structuring a specific bond-buying program specifically aimed at supporting its most indebted economies
Turkey maintains its opposition to Finland and Sweden joining NATO
For the first time since 2007 the Swiss National Bank raised its policy rate by 50bps
Russia increased the cut of natural gas supply to Italy to 35%, sending TTF up 25%
U.S. mortgage rates at 5.78% hit the maximum since 2008, causing new home constructions to fall by 14.4% in May
Blockchain assets are dragged by investors shunning risk assets across the board. BTC is repeatedly testing USD 20k strong resistance, seen by some analysts as "critical" before a raft of leveraged trades get margin-called, potentially causing position defaults

PROFZERO'S TAKE

On June 16, ahead of the market open, ProfZero called the feeble rebound of June 15 a "dead cat's bounce" - nothing different from what happened on May 6, two days after the Fed announced a 50bps interest rate increase: after an initial relief trade, market engaged a steep sell-off, one that brought Nasdaq from 12.9 to 11.4k within a week. Until markets will have embraced the deep rooting of the current disruption; will have stopped looking at Regulators for cheap and quick fixes, and will have started to work on structural solutions on energy and food - ProfZero argues we are bound to trade in a nervous, sharktooth, lose-lose type of environment
It is not "are we holding 20k on BTC?" that should be asked. Rather: "what for is it worth paying 20k?"