In this week's market roundup, the standout story has been China’s significant stimulus measures, which are leading notable liquidity injections across the globe. The China Large Cap ETF (FXI) has shown one of its largest monthly moves in recent years, signaling the scale of these interventions. As China takes action, we’re seeing similar trends in the U.S. and Europe, where governments are cutting interest rates and quietly implementing stimulus measures. This rise in global liquidity is sparking equity markets worldwide, pushing them to all-time highs.
The overall sentiment in the market is becoming increasingly bullish, even though the average retail investor hasn’t fully jumped in. However, those who have been bearish throughout this uptrend are now turning optimistic, signaling that we could be at the starting line of the biggest cycle ever. This aligns with our predictions made since early 2023, and now more analysts are jumping on board. This will likely lead to a huge increase in risk on appetite over the next 12 months, fueled by global monetary policies and continued government spending.
With markets surging, it will be critical to recognize potential peaks. As discussed in our yesterday’s report, identifying tops is a key skill for navigating this environment. Whether you’re trading altcoins or meme coins, knowing when to exit will be essential to maximize gains in this unprecedented cycle. This isn’t a market for small returns—there’s potential for much larger moves, especially as the macroeconomic backdrop remains supportive, with government spending ramping up ahead of the U.S. presidential elections.
As the bullish fervor grows, we’re seeing breakouts across multiple sectors. Many of the tokens on our watchlist are performing exceptionally well, with some back to showing gains of 40x or more. This reflects the underlying strength of the market, driven by a mix of liquidity, rising risk appetite, and strong fundamentals across the board. Try and avoid chasing extreme greed, but the overall outlook remains very positive, and the most substantial opportunities still lie ahead.
