Welcome back to our weekly newsletter! We have things all ready and summarized for you🔥

What to know this Week? 📅

📊Market Performance

• S&P 500: 4,193.80 (-0.46%)

• DJI: 33,052.87 (-0.064%)

• Nasdaq-100: 14,409.78 (-1.03%)

• Russell 2000: 1,662.28 (+0.16%)

• Bitcoin: 34,427.60 (+1.54%)

• Gold: $1,984.241 (+0.02%)

SBF throws his GF under the bus😂

The cryptocurrency world is never short of fascinating stories, and the recent legal developments surrounding Sam Bankman-Fried, the former FTX CEO, have undoubtedly snagged the spotlight.

A vital discussion point focuses on the mistakes made at FTX, resulting in repercussions for many.

Bankman-Fried recently testified regarding his past decisions at FTX, detailing the intricate sequence of events leading to the downfall of the exchange. The former CEO admitted that critical errors were made, most notably, the lack of a risk manager, an oversight he attributes to the severe impact on traders.

In his testimony, Bankman-Fried has continually highlighted that these were mistakes rather than intentional wrongdoings. He also held former colleagues accountable for significant decisions that led to the mishaps, including the controversial 'allow-negative' feature.

This feature, according to prosecutors, played a critical role in the misuse of FTX users' funds.

While on the stand, Bankman-Fried further elaborated on the professional relationship with Alameda Research, a hedge fund he founded. He defended the firm's borrowing schemes and explained the "claw back" terms of service policy.

Warning about the EV Market⚠

Reports from industry leaders such as Ford, GM, and even Tesla indicate a couple of roadblocks and potential speed bumps on the path to EV market domination.

Kelley Blue Book's latest data reveals that US EV sales crossed the 313,000 mark in the third quarter, a nearly 50% rise from a year ago.

This spike has propelled the EV market share to 7.9%, its apex so far. However, despite these noteworthy strides, the auto giants, all of whom are deeply invested in EVs, appear circumspect.

Ford's CEO, Jim Farley, recently emphasized their concern about competitiveness and cost-effectiveness in the EV market realm. He announced that the company is momentarily halting $12 billion worth of investments in EV projects, triggered by an apprehension that US customers are resisting paying premium prices for EVs over gas vehicles.

This is causing a significant pinch on EV prices and, consequently, profitability.

GM and Tesla haven't been out from the unfolding trend either. GM CEO, Mary Barra, highlighted the company's moderation of EV production in North America, citing pricing protection, demand growth adaptation, and the quest for production cost-saving efficiencies.

Tesla's CEO, Elon Musk, being at the forefront of EV propagation, voiced his concerns about higher rates impeding car financing.

Such conditions threaten to suppress consumer demand and raise the cost of EV purchase, thereby making them a less attractive option for potential customers.

Furthermore, a study from J.D. Power indicates the existing price dissonance between EVs and their internal combustion engine (ICE) counterparts, particularly in the thriving compact SUV domain. With the ICE vehicles priced much lower, it further intensifies the competition for the EV market.

There's a silver lining, though.

The upcoming $7,500 EV tax credit is set to instill some momentum in EV sales.

But the concerns don't stop there.

The issues of range anxiety and lack of an extensive charging infrastructure remain significant setbacks for potential consumers.

Dimon is selling his stake in JPM for the first time as boss. 🕴

In recent financial news causing ripples across the banking industry, JPMorgan’s CEO, Jamie Dimon, announced his plan to reduce his stake in his company by selling one million shares currently valued at approximately $141 million.

This move, scheduled to begin in 2024, marks the first time Dimon is selling his stock since assuming the CEO role in 2005.

Featured in JPMorgan's recent regulatory filing, the bank states that the purpose of this sale is for "financial diversification and tax-planning purposes".

I guess that covers the reason 😂

However, it is worth noting that this decision does not herald leadership changes at JPMorgan.

Despite this move, Dimon, who has the distinction of being the longest-serving CEO of a major national bank, and his family will retain a substantial stake in the company, signaling their ongoing confidence in its prospects.

JPMorgan reaffirmed this belief in the same filing, stating, "Mr. Dimon continues to believe the company’s prospects are very strong and his stake in the company will remain very significant". These assurances come amidst a slight dip in JPMorgan’s share value, a 3.6% decline observed on Friday.

Dimon’s decision to sell stock also fuels speculations about his potential move towards a government role.

Over the years, his name has often been associated with top roles in Washington, with vocal endorsements from influential figures like Warren Buffet.

I mean, someone needs to take charge of the economy in the US right now.

Forecasts

GOLD (XAU)

Checking the price of Gold this week and the weekly chart, it's clear that the price of gold is rising and may soon reach its highest price ever, which is between 2035 and 2065.

From this week's price, it starts at the highest point of last week and looks like it might fall. If the price keeps falling this week, we can expect it to go down to the weekly lowest level at 1980 first, before rising again to the record high point.

But if the price goes below this lowest point, it'll fall even more towards another low point of 1932.

In the daily overview, the price has started with a downward trend for two consecutive days, suggesting it might continue falling this week. However, two "safety nets" we can point out are the weekly low between 1980 - 1988 and another lower one at 1947 - 1953.

So, we foresee two possible situations this week:

1. The price could reach the weekly low and then bounce back to the daily/weekly high at 2006. Here it could either break through this high or stay around that point.

2. The price could slip below the weekly low and keep falling until it reaches the daily key low between the 1947 - 1953 range.

Looking at the bigger picture, both the high and low points can strongly influence gold prices, as these areas have often sparked major movements. Therefore, if prices break through these points, they can shift a lot, either up or down.

We must also remember that there's a significant news event coming up. The Non-Farm Employment (NFP) data, which is due this Friday, 2nd of November, can greatly affect the trend of gold prices for the next month. So, we have to wait and see what happens this week, but we should keep a close watch on the key areas we've outlined.

Bitcoin

Moving on to Bitcoin, its current price is still in the range of 34k - 35k. This range is especially important because it used to be a low point that was surpassed. So now, this range acts as a high point, and the price is challenging this high point.

We can expect that the price might drop for a bit before bouncing back to the 34k - 35k range.

When we look at the daily overview, it shows that the price is currently moving around within its high point. But there's also a possible range at 32k, which hasn't been reached yet. So, if the price falls, it might reach this 32k point before bouncing back to the high point of 35k.

There's also another important low point at the 30k level, which was previously a critical high point for Bitcoin for many months. So, this 30k point could act as a new baseline if the Bitcoin price falls below the expected 32k low point, before it climbs back towards the 35k high point.

✨Bonus News✨

Disclaimer: This is not any kind of financial advise. This newsletter is solely informational; it does not constitute investment advice, a solicitation to buy or sell any securities, or a recommendation regarding how to manage your money. Be cautious and conduct your own study, please.