edited using Canva. By Ai.
Inflation is still hot and there's no certainty that there will be rate cuts ahead in this year. We've been hearing about rate cuts from a long time but it's not going to happen anytime soon as the inflation is higher than expected and the number they're telling is still way lower for any rate cuts.
There's one reason why people want rate cuts is that it will make borrowing of money more of a easy and better choice. So, a lot of that cash from borrowing will flow back into the market.
Two things that needs to be paid attention are how not to get distracted by these micro events and secondly paying attention to narrative taking a chill when market goes sideways or down.
The Micro Doomers: How not to Get fooled by the Data
Micro event in the financial market means that in an obvious market trend (uptrend-downtrend) there will be an event that's going to effect/slow down market for a shorter period.
And those events are FOMC, CPI data, PPI and other companies earnings.
This is US inflation every month since 2014 and there are times when bad data turned out good days for the market. People expect market will crash or it'll be worse
The data doesn't work like that in most cases, "bad data" in an uptrend market is always going to be "Good data" except for the time when historically market showed weakness like Q2 is mostly bearish for market and bad data could easily make it worse.
2022 and 2023 is the perfect example how bad data was affected in bear market and than in a bull market.
Now in the crypto market there are a lot of micro doomers who start to post bearish on every cpi data and FOMC, Gets like -5% move and than market climbs back 10% higher which is something that rekts most of the people.
I remember when I used to have no idea about FOMC, cpi etc and everytime when I saw people saying the data came out bad.. it triggered me to sell my allocation as I wasn't comfortable holding because of -3% within some minutes when people were talking about "how bad it is" I thought it might crash any moment now.
So, only point here is avoid listening to micro doomers and pay attention to the market trend and how it performs in that quarter of the year.
Planning to Trade in micro events
I personally like to stick to the market when there's a micro events because of high volatility, it isn't something to fear but people can take advantage of more than 1% spikes within a minute everytime when there's a FOMC or Cpi.
It is inevitable that market will pump and dump means go on both side when data comes out.
I usually wait for a dump first to enter in a trade whatever narrative that fits during the time as I'm more comfortable pressing the green button where strength is shown and have disabled that red one since it's bull market and I'm sure every dump will be slurped by the buyers and RR to upside is more than downside.
Wrapping Up...
In the end, micro events doesn't effect those who are here for long term, all the noise about bad inflation and all won't do much when it's clearly an uptrend with more buyers waiting in lane to get filled In.
This month is already started with a lot of micro events and market isn't showing any weakness despite of all this noise.
Let's see how this month will turn out, still better to be careful and plan the halving.
