Wait and See Strategy
Week of February 14th, 2022
Investors entered the week with a wait and see strategy hoping for more clarity on the Fed’s next move and the escalating Russia/Ukraine stand off. Following Wednesday’s year over year CPI rise to 7.5%, notably higher than estimated, markets declined with the S&P 500 losing almost 200 points by week’s end. 10 year treasury yield rose above 2% for the first time since July 2019 with strategists calling for a possibility of a 50 basis point hike now at the Fed’s next meeting in March. Tension between Russia and Ukraine also caused oil prices to rise above $90, levels not seen since September 2014.
On-Chain Update
(BTC) and Ethereum (ETH) price structures have both nearly completed a technical bullish reversal pattern known as an inverted head and shoulders. Hallmarks of this frequent price fractal include a series of three lows, with an extreme middle low, and a descending volume profile. This triple bottom process began in the beginning of the year and carries significant breakout potential, should price exceed neckline resistance. Pattern failure at the breakout zone would likely result in a re-test of the current mid-January lows. Additionally, both crypto assets show bullish low timeframe moving average crosses for the first time since late November, with growing potential for a bullish golden cross towards the beginning of the Q2 2022.
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The Portfolio Management Team
Steven McClurg, CIO
Bill Cannon, Portfolio Manager
Wes Cowan, Portfolio Manager, Head of Defi
Josh Olszewicz, Head of Research
Sean Rooney, VP Research and Trading
Will McDonough, Vice Chairman, Investment Committee
Leah Wald, CEO, Investment Committee
Shannon Smith, Head of Investor Relations
