The night before the surge? 6 economic indicators reveal we're in the 'banana zone'

Compiled by Deep Tide TechFlow

You may have heard of the “Banana Zone”, but do you know when it actually arrives?

Here are 6 key indicators you shouldn’t miss:

1. Small-cap stocks and the real economy

Indicator 1: Russell 2000 Index ($IWM)

Insight: $IWM stands for small-cap stocks, near-term Start breaking through. This index is an important indicator of the health of the real economy. As corporate earnings increase, more money typically flows into these assets.

来源: @pakpakchicken

2. Risk appetite rising

Indicator: Russell 2000 ($IWM) vs Nasdaq 100 ($QQQ) trading volume

Insight: $IWM trading volume also reflects the market’s risk appetite. Recently, $IWM’s trading volume surpassed $QQQ’s ($14 billion vs. $12 billion). This rare occurrence last occurred in 2017, indicating that investors are more inclined to "risk investment".

来源: Eric Balchunas

3. ISM Manufacturing Index

Indicator 3: ISM Manufacturing Index

Insights: This index is crucial for understanding the business cycle. Its cyclical nature manifests itself approximately every four years, driving liquidity trends. Raoul Pal predicts the index will peak in mid-2025.

来源: RaoulGMI on X

4. Fed Liquidity

Indicator 4: Fed’s H4.1 Data

Insight: Monitoring the Fed’s “money printing” activities is critical as liquidity drives the cryptocurrency market. Check out H4.1 data every Thursday (ET).

来源: MartyParty on X

5. People’s Bank of China (PBoC)

Indicator 5: PBoC Liquidity Injections

Insights: After the Federal Reserve, the People’s Bank of China plays an important role in global liquidity dynamics. Watch for PBoC’s liquidity injections, which are starting to show momentum.

来源: @tomasonmarkets on X

6. Corporate FOMO

Indicator 6: Corporate BTC Buying

Insight: Big companies buying $BTC could spark a market frenzy. For example, Tesla purchased $1.5 billion in $BTC in 2021, impacting the previous cycle. Watch for similar moves by other companies like Dell.

来源: Google

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