Key Bitcoin And Equity Dynamics To Watch Right Now

S&P 500 rallies with strong Apple earnings and short covering. Bitcoin shows some volatility but historical volatility still at record lows. The market is caught between bear rally and larger unwind.

Relevant Past Articles:

• 10/20/22 - The Bitcoin Ghost Town

• 9/16/22 - Five Key Charts To Watch Right Now

• 7/20/22 - Caution: Bear Market Rallies

Apple Carries The S&P 500 Index

Despite a brutal showing in Q3 tech earnings this week, the S&P 500 index is currently rallying on the back of Apple’s performance, who were one of the few who had a positive earnings reaction. At the time of writing, Apple is having an 8% intraday rally move. Along with Amazon’s original 20% drop after Thursday earnings (along with poor Microsoft and Facebook earnings earlier this week), the cracks are showing on how illiquid and volatile this market can get for the world’s largest companies. This cycle started with bitcoin but now it has progressed to bonds, currencies and blue chip tech equities. We already knew bitcoin would be volatile but now everything else has caught up. Proceed with caution. 

Although coming down from the last two years, Apple’s weight in the S&P 500 index is still significantly higher than any other company or industry in history. It likely will be the last domino to fall in taking the market lower. 

Source: Bianco Research 

---

HALLOWEEN SPECIAL: Bitcoin Magazine PRO will be hosting the one and only Greg Foss for an in-depth discussion of all things Bitcoin, macro and simple mathematics. This is one you don’t want to miss.

LIVE 10/31 @ 1:00 PM Pacific Time. RSVP by clicking below.

---

As the market generals are now figuratively being shot (META, AMZN, GOOG), Apple is the lone wolf of the mega-cap tech sector that continues to defy gravity. Relative to the Nasdaq 100 index, shares of Apple have never been more valuable. This type of concentration among the top of the indices is not the sign of a healthy or structurally sound market.