Markets Crash In Panic: All Targets Reached
The April 7 market opening has been a bloodbath for any asset in the financial world – equity, commodity, cryptocurrency, or index. The bear market continues with all its might, erasing all previous yearly gains to the ground.
As a result, all of our medium-term targets have been reached. The NASDAQ-100 took out the 17,400 points, crashing by a thousand points more. It is now trading at 16,400 – levels unseen since mid-January 2024 (down 26% from its ATHs). While a technical rebound is healthy even for a bear market, the crunch is likely to continue. Some countries bent to Trump’s will, asking for a negotiation. Others, like China or the EU, have already retaliated or plan to do so. If the escalation continues, US equities will proceed lower.
NVDA also reached our $ 90-a-share target but is likely to open far lower today due to the overall US equity dynamics. If you held the short on both the Nasdaq and Nvidia, as we advised you to, congratulations on your profits!
The Wall Street fear index (VIX) has surged to the highest level since the July NFP 2024 crash. When fear is dominant and the fundamentals align in support of the bears, the global picture for equities becomes dire.
Bitcoin also finally crashed after holding firm for no logical reason during the last week. It has reached our $77,000 target and is now trading even lower—at $74,800. As we have said many times, BTC is a “stock on steroids.” If global equities continue to fall, Bitcoin will also suffer heavy drawdowns.
Brent Crude Oil completed our forecast at market open, just 48 hours after we published it (if you do not consider the weekend trading halt, the targets have been reached almost immediately). Now, it is fluctuating at $62.5/b, with no signs of a rebound in sight. Will it reach $50/b soon?
The only instrument that has not reached targets yet is the EURUSD. Here, the situation remains unclear. It is unlikely that the economies of the Euro Area will resist a prolonged trade confrontation with the US, but if the USD continues to weaken at such a fast pace, the Fiber is bound to go higher.
P.S. Since the beginning of the crash, XAUUSD has lost only 3.5%.
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