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

• October Market Forecast🎃

• Navigating Stablecoins amidst Binance-SEC Scuffle⚖

• Ray-Ban Meta Smart Glasses😎

What to know this Week? 📅

📊Market Performance

• S&P 500: 4,299.70 (+0.59%)

• DJI: 33,666.34 (+0.35%)

• Nasdaq-100: 14,702.77 (+0.84%)

• Russell 2000: 1,794.31 (+0.87%)

• Bitcoin: 25,852.80 (-0.056%)

• Gold: $1,872.73 (+0.32%)

October Market Forecast🎃

A host of indicators suggest a rough ride ahead for the stock market. The S&P 500 has seen a 5% pullback, and the Nasdaq Composite has shed an alarming 6.5% in September alone.

A relatively mild retreat in the Dow Jones Industrial Average by 3.4% does not soften the overall grim picture. Anticipations of an additional interest rate hike, inexorably climbing oil prices nearing $100 a barrel, and concerns over an impending government shutdown have exacerbated anxiety among investors, casting a long shadow on the October market outlook.

One can witness the tremors in the tech sector, with giants like Netflix and Apple registering significant losses. Even companies like Salesforce, which has recently unveiled new AI tools, have felt the pinch, underlining an overall anxious sentiment in the market.

On the retail side, warning signs have appeared from various quarters indicating growing economic stress. Reports of closed Target stores due to rising retail crime, increased credit delinquencies, and consumer caution in purchasing homes or cars due to higher interest rates suggest a challenging landscape.

As we turn our gaze to the crypto market, it is crucial to be prepared for a potential downturn in October. Given the interconnectedness of financial assets, crypto markets are likely not immune to the broader market trends. We recommend exercising a heightened level of caution and prudence when making investment decisions in the crypto field.

Despite a drumbeat of negative signals, bear in mind that market corrections are a normal part of the economic cycle.

It is important to maintain a balanced perspective and strategic approach in response to such shifts. Use this anticipated market adjustment as an opportunity to reassess your investment strategies, diversify your portfolio, and potentially increase exposure to defensive sectors.

Navigating Stablecoins amidst Binance-SEC Scuffle⚖

Stepping into the ring, the stablecoin issuer Circle has entered its arguments, suggesting that stablecoins such as its own USDC, as well as Binance's BUSD, should be excluded from being classified as securities.

This intervention by Circle raises an important conversation about the application of traditional financial laws in the expansive and innovative world of cryptocurrency.

The SEC's case lodged against Binance in June of this year claimed several legal infringements for facilitating trades in cryptocurrencies like Cardano's ADA, Solana's SOL, and Binance's BUSD itself, alleging these to be unregistered securities.

But, let's dig a little deeper.

Stablecoins like BUSD and USDC are digital assets whose values are pegged to real-world assets, commonly the U.S. dollar. Notably, Circle argues that these assets cannot be deemed securities as investors do not expect profits from standalone purchases - a stark contrast from how securities are typically perceived.

For the uninitiated, an investment contract or a security is an investment in a common enterprise with a reasonable expectation of profits to be derived from the entrepreneurial or managerial efforts of others.

However, Circle suggests that since stablecoins on their own do not provide a promise of profit, they cannot be classified as investment contracts and should, therefore, stand outside of SEC jurisdiction.

The SEC Chair Gary Gensler was also just roasted at congress recently. Watch him struggle to answer about Pokemon Cards 😂

Ray-Ban Meta Smart Glasses😎

Meta (formerly Facebook) is making strides in wearable technology with the launch of its second-generation Ray-Ban Meta Smart Glasses. They're more than just a pair of glasses, offering tantalizing features for content creators and tech enthusiasts alike.

Introduced at the recent Meta Connect event, this new gadget is far more than just a stylish accessory. The Ray-Ban Meta Smart Glasses blend form with function, offering an upgraded camera, real-time livestreaming capability, better audio, and simplistic yet innovative tech features.

It's safe to say that Meta is bringing its A-game to the wearables sector, proving the power of convergence in tech.

The upgrade from the Ray-Ban Stories’ 5MP to 12MP ultrawide cameras strongly enhances the quality of on-the-go visuals, making the glasses stand out. Needless to say, this substantial enhancement brings a significant difference in the user experience. It results in high-definition videos and photos, comparable to popular platforms like TikTok, YouTube, and Instagram Reels.

As for the much-anticipated livestreaming feature, it seamlessly integrates with Instagram besides Facebook. You can even switch between the phone’s selfie camera and the glasses with an easy tap on the Instagram app.

While the overall style remains classic Ray-Ban, the new collection offers a variety of colors and even includes a new rounded Headliner frame. Despite housing a volume of tech within, the arms of the glasses have been designed in a way that does not weigh down the user, keeping comfort a priority.

Moreover, addressing privacy concerns, Meta has made the capture LED bigger and more noticeable to alert others when you're recording.

How do you think this will affect the stock of Meta?🤔 

Forecasts

XAU/USD

Our projections regarding the trajectory of Gold (XAU/USD) proved to be quite accurate. As anticipated, gold continued to follow its downtrend curve this week. Let us not overlook that we also pointed out two significant support levels, which were:

1. $1,914

2. $907

We identified and underscored the $1907 support level as a Critical Level - this was predicated on multiple instances of price rejections noted at this particular point, revealing its otherwise sustained strong support.

However, given the steadfast bearish trend of gold this week, coupled with the clear rejection of last week's key resistance level at 1940, we expressed reservations about this specific support's ability to fend off further downturns. Complete forecasts can be reviewed at the following link:

To summarize our forecast for gold for this week, gold did continue with its bearish trend and broke 2 of our highlighted support levels on the same week, including our highlighted critical level at $1,907 (support level).

However, as we can see, it broke out of the significant support level on 26^th September and it continued its downtrend with a big bearish candle on the next day after opening its price below the critical level and continued its downfall up to $1,864.

As of today, the price opened at the Daily support level at $1,864, where the price is bullish today. However, we cannot deny that the current trend of gold now is still bearish. There could probably be a chance that the price would go back up to our previous critical level, $1,907, which is now a resistance whereby:

1. The price executing a pullback to this demarcation, reinforcing its downward trend even greater.

OR

2. The price persisting along its downward spiral as a result of several fundamental factors significant enough to decisively dictate gold's trajectory and the status of the US Dollar.

Bitcoin

For Bitcoin, we projected its ongoing downtrend towards a persistent $26K-$25K support level. Notably, several efforts to breach this level have been met with strong resistance, largely preventing a bullish run.

The highlighted $28K zone is significant if Bitcoin aims to reclaim the $30K mark, however, previous bullish attempts to this area have met with staunch rejections, pulling the price back down.

To encapsulate our Bitcoin forecast for the week - the price indeed ventured into our pre-designated support zone. Intriguingly, it was met with an assertive bullish candle on 28th September, culminating in a third consecutive rejection.

Today, with the price opening marginally lower than the zone and registering another dismissal, displays recurrent signs of a bearish sentiment for Bitcoin, possibly extending into the forthcoming month.

As we know, the particular highlighted zone is a significant level for bitcoin which would signify that if the price were to break, then it would finally be able to reach back to the $30k Level but if the price still fails then the price of Bitcoin will still continue to fall slowly until another turn of events…

✨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.