The stock market is looking strong and upbeat due to the recent weakness of the US dollar index (DXY). An expected decline of the DXY may serve as a tailwind to the stock and crypto markets. The Global Macro Investor's newsletter states that there currently is a potential head-and-shoulders bottom formation in global stock markets that could result in stocks heading much higher.

Meanwhile, Ethereum (ETH) appears to be in the process of replicating the performance and moves of Bitcoin (BTC) over 2015. Specifically, ETH resembles the price movements of BTC from 2014-2016 when the token went from just under $2,000 to almost $3,000 within a year.

It is worth noting that both the DXY breakdown and the head-and-shoulder bottom formation have not been realized yet. Investors and traders should take precaution to protect their portfolios in the event of xyz events that could hinder the stocks’ movements.

Raoul Pal was an early investor in BTC and is a considered a macro guru with his newsletter Global Macro Investor seen as must-read by market players. On Pal’s opinion, the stock market is 20-30% undervalued at current prices. With the DXY showing potential weakness and ETH following the 2015 BTC trajectory, the stock market could see a significant upswing. As of now, ETH is trading around $1,842.

In conclusion, macro investor Raoul Pal sees good signs for the overall stock market and Ethereum in particular. The US Dollar Index is showing signs of weakness which can in turn lead to increased investor influx into riskier investments like stocks and crypto. Additionally, ETH is exhibiting the same behavior that BTC exhibited back in 2015 when it experienced a hefty rally. Investors should be aware of the potential risks, but everything points to a brighter future for the stock market in the short to medium term.



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