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Morning Brief- 11/16/21: Crypto Tank , Chinese Crackdown, US Regulation

Retail sales are about to get posted today , and I believe we are going to see a big uptick as Covid restrictions waned and people finally started going back to stores. I believe we could see a big boost to big box stores. Walmart was a great signal for that, as it beat earnings , showing an increase in consumer demand. Keep an eye out for other retail earnings reports, as it can be a good play to do a naked call or bull call spread.

The big news this morning is with #crypto #cryptocurrency. Bitcoin (BTC-USD) dropped over 10% overnight , sliding t $60,000 . The rest of crypto followed suit , the global crypto market cap tumbled 7%. The continued pressure on crypto stems from two things. First, the US is growing closer and closer to crypto regulation. This could see a lot of legal allegations to instagram influencers who bait and switched a lot of trash crypto coins . The pump and dump has been a classic trend in the crypto market, and with the SEC coming close to regulation, you could see a lot of charges begin to be brought to light. China is yet again targeting crypto currency and miners. China is considering bringing punitive fees for crypto miners, targeting increasing power prices for companies in the crypto space.

#TSLA gained some support as the stock tumbled below $1,000 yesterday. As predicted , we saw funds buy into the dip and larger positions were taken by top ETFs. Tesla had a late surge , spiking quickly back up to 1,030. The overall volume was up over 150% to the daily average, as Elon continues to sell more and more stock. The dumping might be over, as I don't expect he has much more volume to dump. I imagine the number is close to about 1.5-2 billion left, so I expect to see continued support and a bullish trend.

Overall, it seems the market is still going to finish up this week, and I see a lot of support in the market as Wall Street still is banking on rate hikes coming later next year.

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