👀 The Rally is Heating up, Mag 7 stocks Sold, China buying Gold

Hi guys, it’s Kieran! Another week in the markets is upon us, so let’s get into it.

📢 Prop Firm Industry News

A pretty quiet week across the industry last week. Probably the biggest news was that FastTrackTrading, the firm which shot to the top of the Payout Junction leaderboard after only a few weeks, are now accepting credit cards. Previously they were only accepting bank transfer and crypto payments. This has been highly requested by their community so it will be interesting to track the affect this has on their payout volume over the next couple of months.

Speaking of which, from Payout Junction, here our the firms with the highest payout volume (Rise) over the last 7 days 🏆️ 

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Monitor prop firm payouts LIVE on Payout Junction -https://payoutjunction.com.

🕜 Economic calendar

Here are this week’s red folder news events. After last week’s barrage of major news releases, this week is relatively quiet. Key events are US CPI (inflation) on Thursday and US PPI on Friday.

📈 The Macro View

This rally is still heating up. BofA's bull/bear indicator is moving higher but is still far away from extreme levels, so we could have a lot of room to run before it gets too crowded.

The May 7 stocks are getting heavily sold.

Curiously on Goldman Sachs Prime book, the Mega cap tech stocks (Mag7) collectively were net sold for a 9th straight week (12 of the last 13). Net length is now at the lowest level since May ‘23. Yet…. the overall market still grinds higher. Something to ponder.

China going parabolic

The biggest story in the markets right now is the Chinese market stimulus. As we saw last week, Chinese equity indices have exploded higher over the last 2 weeks. Last week saw the second largest weekly inflows ever into China equity funds. Something to keep an eye on.

China back on the Gold bid as well

Speaking of China, not only are they pumping stocks, they are back buying Gold. After a couple of months selling into this rally, the PBOC was a big net buyer last month, and this is only what they have declared, so the real number could be much higher 😁 

That’s it for this week. Have a good one and stay safe out there!

Kieran

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