S&P 500 (SPY) Remains Under Pressure At The Start Of The Week

Key Insights

  • The stock market is falling as traders sell riskier assets amid recession worries.
  • Strong dollar and rising Treasury yields serve as additional bearish catalysts for stocks. 
  • The pullback is broad, and all market segments are under pressure. 

S&P 500 Retreats As U.S. Dollar Tests New Highs

S&P 500 continues its attempts to settle below the support level at 3660 as traders move out of riskier assets.

Treasury yields are testing new highs. Currently, the yield of 10-year Treasuries is trying to settle above the 3.85% level. At the start of August, 10-year Treasuries yielded just 2.60%, so the recent upside move was huge.

Higher Treasury yields put significant pressure on REITs. Kimco Realty, Ventas, Prologis, and Vornado Realty are among the biggest losers in the S&P 500 today.

Energy stocks have also found themselves under pressure as WTI oil tested new lows. Baker Hughes, Hess, and Halliburton are down by more than 3% in today’s trading session.

Some tech stocks, like Apple and Amazon, are trying to rebound today. Other tech stocks, which have been weak in recent weeks, continue to move lower. Meta and NVIDIA are testing new lows.

It should be noted that strong dollar also serves as a negative catalyst for U.S. stocks by making them more expensive for foreign investors. Today, the U.S. Dollar Index tested highs that were last seen back in 2002. Dollar’s strength highlights the global flight to safety, which is bearish for riskier assets like stocks.

S&P 500 Tries To Settle Below The Support Level At 3660

S&P 500

From a technical point of view, RSI has recently entered into the oversold territory, so the risks of a rebound are increasing. This year, RSI has been at current levels in late January, after the strong pullback.

This time, the panic looks strong, so RSI may move to lower levels without a rebound. It remains to be seen whether the market is ready for a flash sell-off, which happened during the coronavirus crisis. However, the current pullback is broad, and the recent moves in currency markets show that investors are very nervous.

For a look at all of today’s economic events, check out our economic calendar.

S&P 500 (SPY) Retreats As Recession Fears Grow

Key Insights

  • S&P 500 is under strong pressure ahead of the weekend as traders sell riskier assets. 
  • The pullback is broad, and there are no safe-havens in the stock market. 
  • Energy stocks retreat as WTI oil tests multi-month lows. 

The Sell-Off Continues

S&P 500 is under strong pressure amid global market sell-off. Today, traders are selling everything and buying U.S. dollar, which is testing multi-decade highs.

Not surprisingly, all market segments are under strong pressure today. Energy stocks suffered a strong sell-off as WTI oil moved below the $80 level on recession worries. APA Corporation, Marathon Oil, Halliburton, and Schlumberger are down by more than 10% in today’s trading session.

Basic materials stocks have also been hit hard. The leading copper producer Freeport-McMoRan is down by 7% today. Fertilizer producers CF Industries and Mosaic are losing 6% in today’s trading session. Gold stocks, like Newmont Corporation, are also under pressure as gold tests new lows.

Among leading tech stocks, Meta, NVIDIA, Microsoft, and Alphabet are testing yearly lows. Treasury yields keep moving higher, which is bearish for tech stocks.

From a big picture point of view, the current sell-off is close to a real panic. Traders are moving out of various asset classes and transfer their funds into the U.S. dollar.

It should be noted that S&P 500 has lost more than 10% of its value in less than two weeks, so speculative traders will likely try to search for bargains. Even if the market is headed lower, sell-offs rarely go in a straight line, so traders should expect that the market will stay extremely volatile.

S&P 500 Tests Support At 3660

S&P 500

S&P 500 settled below the 3700 level and tested support at 3660. In case S&P 500 manages to settle below 3660, it will head towards the next support level, which is located at 3635. A move below this level will open the way to the test of the support at 3600.

On the upside, the previous support at 3700 will serve as the first resistance level for S&P 500. RSI is in the oversold territory, so the chances for a rebound are increasing. In case S&P 500 manages to climb back above 3700, it will head towards the resistance at 3725. A successful test of this level will push S&P 500 towards the resistance at 3750.

For a look at all of today’s economic events, check out our economic calendar.

S&P 500 (SPY) Dives Below 3800 As Powell Wants To Put Pressure On Demand

Key Insights

  • S&P 500 finished the trading session below the 3800 level as Powell said that the Fed would work to moderate demand in order to fight inflation. 
  • The pullback was broad as traders rushed out of riskier assets. 
  • However, some consumer defensive stocks managed to gain ground in today’s trading session. 

The Fed Stays Focused On Inflation

S&P 500 declined by 1.7% in a volatile trading session after the Fed increased the interest rate by 75 bps.

Fed’s message was hawkish. The Fed raised the median federal funds rate projection to 4.6% in 2023. During the press conference, Fed Chair Jerome Powell highlighted the importance of pushing inflation back towards the 2% level.

Interestingly, S&P 500 made an attempt to settle above the 3900 level during Powell’s conference. However, stocks quickly lost momentum, and S&P 500 declined to 3790.

Powell said that higher inflation presented a bigger problem than the slowdown of the economy and potential layoffs. Powell said that the labor market was too tight and needed to be more balanced.

The pullback was broad as Fed’s efforts to cool demand will hurt all industries. Leasure and entertainment stocks were hurt the most. Caesars Entertainment, Las Vegas Sands, Carnival Corporation and Wynn Resorts were among the biggest losers.

Leading tech stocks have also found themselves under material pressure. Apple, Amazon, Tesla, and Meta were down by 2-3% in today’s trading session.

Some consumer defensive stocks, like General Mills, Kellogg, Campbell Soup, and Kraft Heinz enjoyed support today. Traders tried to find safe-haven assets in today’s market and focused on companies that produce basic products. It remains to be seen whether these stocks will continue to move higher in the upcoming trading sessions.

A Move Below 3780 Will Push S&P 500 Towards The Support At 3750

S&P 500

S&P 500 settled below the 3800 level and finished the day near 3790. After the market close, it is trying to settle below the support at 3780.

If this attempt is successful, S&P 500 will head towards the next support level, which is located at 3750. A move below this level will push S&P 500 towards the support at 3725. If S&P 500 gets below 3725, it will head towards the next support at 3700.

On the upside, the previous support at 3800 will serve as the first resistance for S&P 500. If S&P 500 manages to settle back above this level, it will head towards the resistance at 3825. A move above 3825 will push S&P 500 towards the resistance at 3850.

For a look at all of today’s economic events, check out our economic calendar.

S&P 500 (SPY) Dives To 3850 As FedEx Report Highlights Recession Risks

Key Insights

  • The disappointing report from FedEx put significant pressure on S&P 500 today. 
  • Treasury yields keep moving higher, which is bearish for stocks. 
  • A move below 3850 will push S&P 500 towards the next support level at 3825.

S&P 500 Remains Under Strong Pressure Ahead Of The Weekend

S&P 500 moved towards the 3850 level after a disappointing FedEx fiscal Q1 report. The report missed analyst estimates. In addition, FedEx withdrew its fiscal year 2023 earnings forecast, which was provided on June 23, 2022.

FedEx noted that “results were particularly impacted by macroeconomic weakness in Asia and service challenges in Europe, leading to a revenue shortfall in this segment of approximately $500 million relative to company forecasts.”

FedEx stock is down by 22% in today’s trading session. United Parcel Service stock has also found itself under material pressure.

The FedEx report boosted worries about a global recession. Not surprisingly, consumer cyclical stocks have found are losing ground today. Packaging Corporation of America and International Paper Company are down by more than 11%.

Other notable losers include General Electric, which is down by 5%, and Boeing, which is down by 4% in today’s trading.

Meanwhile, Treasury yields keep moving higher as traders remain nervous ahead of the Fed meeting. Higher yields are bearish for tech stocks, which are moving lower. Meta managed to settle below the $150 level and is testing yearly lows near the $146 level. Amazon stock is down by 3% today.

S&P 500 Tests Support At 3950

S&P 500

S&P 500 managed to settle below the support at 3885 and is testing the next support level at 3850. In case this test is successful, S&P 500 will move towards the next support level, which is located at 3825. A move below 3825 will push S&P 500 towards the support at 3800. If S&P 500 declines below this level, it will head towards the next support at 3780.

On the upside, the previous support level at 3885 will serve as the first resistance level for S&P 500. In case S&P 500 manages to settle back above 3885, it will head towards the resistance at 3900. A successful test of the resistance at 3900 will push S&P 500 towards the next resistance level at 3920.

For a look at all of today’s economic events, check out our economic calendar.

Should You Invest In AI Stocks?

What Is AI?

Artificial Intelligence, or AI, is basically machine learning, or a process by which computers simulate our human intelligence through a collection of complex systems. There are many different applications of AI, including speech recognition, vision, language processing, and expert systems.

AI makes it possible for computers or machines to receive data through various means of technology – like movement or heat sensors for example – to interpret and arrange what they perceive into a somewhat logical order, solve a problem, and then act in a way that achieves the desired outcome.

On some level, the hardware that possesses AI is capable of adapting what they do to suit its environment or even ‘learn’ from previous behavior with the use of analysis and the ongoing collection of data.

The technology has been around in various primitive forms for decades, but it’s become far more complex in recent years and its use is becoming more widespread in countless industries. There are benefits to consider, such as enhanced productivity, technological advances, medical advances, and cheaper goods and services, but also concerns to take into consideration too, such as potential issues with privacy, safety, and security for example.

The public can be naturally dubious and uncertain about some applications of AI – after all, we don’t really know where the technology is headed long term.

So, is AI the way of the future for your investment strategy? How can you take advantage of this growing space and invest wisely with a secure broker like ActivTrades? Let’s take a bit of a look into the world of AI and you can decide what options might be suitable for you.

How Do Companies Use AI In Their Businesses?

There are so many industries that are being enormously affected by investment and growth in AI technology at the moment. Some include Health Care, Automotive, Travel, Marketing, E-commerce, Social Media, Law Enforcement, and Finance, but there are many others.

One of the lesser known, but fairly important users of AI, is the Agricultural industry, with the most notable example in this space being John Deere. Their technology aims to take the guesswork out of farming and to use AI to target and fix trouble areas, like weeds or dry spots, among other things. They’re using specific sensors, drones, targeted spraying, and driverless tractors to be able to increase productivity and output by significant margins.

Another prominent company that is hugely reliant on AI is retail giant JD.com, located in China. An e-commerce site that sells almost every product imaginable expects its business to be completely automated in the future. And the company already has warehouses that are completely free of employee involvement, and deliveries of products to consumers have been conducted by a network of drones for a few years already.

How To Recognize Artificial Intelligence Stocks

You may already have investments in your portfolio that expose you to AI without being aware of it as it’s become so widespread, but if you’re actively on the hunt to focus on the technology there are a few options available. You’ll just need to do a little research because there aren’t too many companies with AI at the center of their business.

The top stocks to look at are from companies that are making ongoing investments in things like infrastructure for networking, data centers, cloud-based operations, and robotics, among other things. Think big tech companies like Amazon, IBM, Alphabet, Microsoft, Nvidia, and Meta, but also lesser-known companies like Intuitive Surgical, who specialize in creating technology for minimally invasive surgical procedures with the use of robotics and AI.

How To Trade Artificial Intelligence Stocks

You might like to purchase individual shares directly for your preferred company or look into financial derivatives such as Contracts for Difference (CFD) which allow you to invest in the price movements of a company, but not actually own the underlying stock. This method also allows the trader to take advantage of leverage and potentially make magnified returns on the emerging technology of his choosing.

Some Exchange-Traded Funds also offer products specific to AI. This is called Thematic Investing, which focuses on a specific theme such as AI, communications, or clean energy, for example. Different companies from different sectors may be involved, but they are all a part of the same objective or part of a popular trend.

Generally, the products to look for are those that contain a basket of the top publicly traded AI and robotics stocks that are selected by the fund based on their preferences. ARK Autonomous Technology & Robotics ETF is one such example and includes (as of September 2022) Tesla, Deere & Co, and Trimble Inc, among a few others.

Whatever your investment strategy, whether using derivatives, ETF, or buying individual stocks, it’s vitally important to have a trading plan in place and remember that AI is an emerging sector, one with risk involved. You’ll need to do your research and have a well-established risk management and trading plan that you’re prepared to stick to – and never invest more capital than you’re comfortable losing.

S&P 500 (SPY) Rebounds As Buyers Emerge After Sell-Off

Key Insights

  • Traders buy stocks after yesterday’s major pullback, but some market segments remain under pressure. 
  • Energy stocks enjoy strong support today as energy markets continue to rebound. 
  • A move above 3950 will push S&P 500 towards the resistance at 3980.

Stocks Rebound After Yesterday’s Sell-Off

S&P 500 moved towards the 3950 level as stocks rebounded after yesterday’s huge pullback.

Today’s PPI report, which showed that PPI declined by 0.1% month-over-month in August, provided some support to stocks today. However, it should be noted that Core PPI increased by 0.4% month-over-month, compared to analyst consensus of 0.3%, as inflationary pressure remained strong.

Treasury yields tested new highs today, and the yield of 10-year Treasuries made an attempt to settle above 3.80%. Treasury yields keep moving higher as traders bet that Fed will be forced to raise rates aggressively, which could ultimately put more pressure on tech stocks.

Today, leading tech stocks are trying to rebound after yesterday’s nightmare. Tesla is up by 4%, while Apple is gaining 1%. Meta remains under strong pressure and is testing yearly lows, trying to settle below the $150 level.

Energy stocks outperform other market segments as WTI oil continues to rebound. Schlumberger is up by 4%, while Exxon Mobil is gaining 3% in today’s trading.

It should be noted that today’s rebound is not broad. The real estate segment is under notable pressure due to rising Treasury yields. The basic materials segment is also moving lower. For example, shares of the leading copper producer Freeport-McMoRan are down by 3.5% today.

Today’s trading action shows that traders remain nervous after yesterday’s sell-off. Hawkish Fed is the main risk for markets, so trading will likely stay choppy until the Fed Interest Rate Decision, which will be released on September 21.

S&P 500 Tries To Settle Above 3950

S&P 500

S&P 500 is currently trying to settle above the resistance at the 3950 level. In case this attempt is successful, S&P 500 will move towards the next resistance level, which is located at 3980. A move above this level will push S&P 500 towards the resistance at 4000.

On the support side, the nearest support level for S&P 500 is located at the recent lows at 3920. If S&P 500 manages to settle below this level, it will head towards the next support at 3900. A successful test of this level will open the way to the test of the support at 3885.

For a look at all of today’s economic events, check out our economic calendar.

S&P 500 (SPY) Rallies Ahead Of The Weekend

Key Insights

  • Leading tech stocks gained strong upside momentum, providing support to S&P 500.
  • Energy stocks moved higher as WTI oil rebounded above the $86 level. 
  • A move above 4050 will push S&P 500 towards the resistance at 4080.

S&P 500 Tests Resistance At 4050

S&P 500 is trying to settle above 4050 as stocks rally amid growing appetite for risk. The U.S. dollar pulled back from recent highs, while Treasury yields moved lower, providing support to leading tech stocks.  Tesla, Meta, NVIDIA are up by 3-4% in today’s trading session.

Energy stocks have also provided material support to S&P 500 as WTI oil rallied towards the $86 level. In general, today’s rebound was broad, and all market segments moved higher.

Not surprisingly, defensive sectors were among the worst performers as traders rushed to buy tech and energy stocks.

S&P 500

S&P 500 is currently trying to settle back above the resistance at the 50 EMA, which is located near the 4050 level. In case this attempt is successful, S&P 500 will move towards the resistance at 4080.

A move above 4080 will push S&P 500 towards the next resistance at 4100. If S&P 500 gets above this level, it will head towards the resistance at 4115.

On the support side, a move below 4050 will push S&P 500 towards the support level at 4015. In case S&P 500 declines below this level, it will head towards the next support at 4000.

DocuSign Rallies After Strong Earnings Report

DocuSign is up by 10% after the release of a strong earnings report. The company reported revenue of $622 million and adjusted earnings of $0.44 per share, beating analyst estimates on both earnings and revenue. It should be noted that DocuSign stock is down by 80% from 2021 highs, so market’s expectations were modest ahead of the report.

Coinbase is up by 8% amid a strong rebound in crypto markets. Bitcoin gained strong upside momentum and moved back above the $21,000 level, proving support to all crypto-related assets.

From a big picture point of view, it looks that traders want to increase their positions in riskier assets. For example, ARK Innovation ETF, which focused on high-growth companies, is up by more than 4% today.

Next week, S&P 500 dynamics will depend on whether leading tech stocks continue to rebound. In case Treasury yields move back to recent highs, stocks may face material resistance.

For a look at all of today’s economic events, check out our economic calendar.

S&P 500 (SPY) Rebounds As Tech Stocks Move Higher

Key Insights

  • Lower Treasury yields provided support to tech stocks. 
  • The rebound in leading tech stocks pushed S&P 500 towards the 3950 level. 
  • Energy stocks found themselves under strong pressure amid sell-off in oil markets. 

Tech Stocks Rebound After Recent Pullback

S&P 500 gained upside momentum and moved towards the 3950 level as leading tech stocks rebounded.

Treasury yields declined, while the U.S. dollar pulled back from yearly highs, which served as an additional positive catalyst for tech stocks. It should be noted that some tech stocks, like Apple, Meta, and NVIDIA, lack positive momentum today.

Meanwhile, energy stocks were among the worst performers as WTI oil broke through the key support level and moved towards $83. Major energy stocks like Exxon Mobil, Chervon, and Schlumberger are down by about 2% in today’s trading.

Previously, we have discussed that a rebound in tech stocks was needed to push the market higher. Today’s market action indicates that S&P 500 may gain strong upside momentum even when the previous leader (energy stocks) is under pressure, in case leading tech stocks enjoy strong support. In this light, the continuation of the current rebound will depend on the dynamics of leading tech stocks, which remain the key catalyst for S&P 500.

S&P 500 Tests Resistance At 3950

S&P 500

 

S&P 500 found support near 3885 and moved above the resistance level at 3915. Currently, S&P 500 is trying to settle above the resistance at 3950.

In case this attempt is successful, S&P 500 will move towards the next resistance level, which is located at 3980. A move above this level will open the way to the test of the resistance at 4000. If S&P 500 climbs above 4000, it will head towards the resistance at 4015.

On the support side, the previous resistance level at 3915 will serve as the first support level for S&P 500. In case S&P 500 declines below this level, it will head towards the next support at the recent lows at 3885. A successful test of this level will push S&P 500 towards the support at 3830.

For a look at all of today’s economic events, check out our economic calendar.

S&P 500 (SPY) Rebounds From Session Lows As Energy Stocks Rally

Key Insights

  • Tech stocks are losing ground as Treasury yields are moving higher. 
  • Energy stocks stay strong as WTI oil rallies amid protests in Iraq. 
  • The strong rally in energy stocks may provide more support to the broader market.

Stocks Remain Under Some Pressure

S&P 500 declined below the 4050 level as traders remained focused on Powell’s hawkish comments.

The yield of 10-year Treasuries has climbed back above the 3.10% level, so it was not surprising to see that tech stocks were the worst performers today. Apple, Microsoft, Tesla, NVIDIA, Meta and other big tech names remained under significant pressure.

In Dow Jones, 3M Company was the main laggard. The stock remains under significant pressure as traders are worried that the company may face up to $100 billion of losses from combat earplug lawsuits. On Friday, a judge ruled that bankruptcy of 3M Company’s subsidiary could not prevent lawsuits against the parent company.

Energy stocks is the leading market segment today. WTI oil rallied amid violent protests in Iraq, providing additional support to leading energy stocks like Exxon Mobil and Chevron. The rally in the energy segment may push S&P 500 to higher levels at the end of today’s trading session.

Will The Sell-Off Continue?

Traders fear that Fed’s aggressive rate hikes will put significant pressure on the economy. Tech stocks remain sensitive to Treasury yield dynamics as many shares in this market segment are trading at high valuation levels. For example, NVIDIA, which is down by about 45% year-to-date, is still trading at 35 forward P/E.

While Fed’s potential rate hikes and rising Treasury yields are strong bearish catalysts, it would be naive to expect that S&P 500 will move lower day after day. There are no signs of serious liquidity problems in the world, and there should be a sufficient number of buyers who are waiting for pullbacks to establish their positions in U.S. stocks. The rally in energy stocks may provide additional support to the broader market.

S&P 500

S&P 500 failed to settle below the 4000 level and is trying to get back above the resistance at 4040. In case this attempt is successful, S&P 500 will move towards the 50 EMA, which is located near the 4080 level. A move above the resistance at the 50 EMA will open the way to the test of the resistance at 4115.

On the support side, S&P 500 needs to settle back below 4040 to have a chance to gain additional downside momentum. The next support level for S&P 500 is located at 4000. If S&P 500 manages to settle below this level, it will head towards the support at 3975. A move below 3975 will push S&P 500 towards the support level at 3945.

For a look at all of today’s economic events, check out our economic calendar.

Soft CPI Sends Stocks Surging; S&P 500 Gains 2.1% to Hit Highest Since Early May Above 4,200

Key Points 

  • US equities rallied across the board on Wednesday after US inflation data for July surprised to the downside.
  • Traders aggressively pulled back on their Fed tightening bets, with a 50 bps September hike now the base case.  
  • The S&P 500 and Dow Jones both hit their highest levels since early May, with the former surpassing 4,200.

Soft CPI Sends Stocks Surging 

US equities rallied across the board on Wednesday after US inflation data for July surprised to the downside, a welcome validation of hopes that US inflation has now peaked and easing concerns about excessively aggressive monetary tightening from the US Federal Reserve. The S&P 500 hit its highest levels since early May above 4,210, gaining 2.1%. The Dow posted a 1.6% gain to also hit its highest since early May. While the Nasdaq 100 was the outperformer of the major indices, posting a 2.85% gain as big tech/growth stocks led the market rally, the index just missed out on printed fresh highs for the month.  

All eleven of the S&P 500 GICS sectors rose on Wednesday, though the growth/tech stock dense Information Technology, Communication Services and Consumer Discretionary sectors led the way, bolstered by a sharp post-soft CPI data decline in US yields. Lower bond yields mean a lower opportunity cost of holding so-called “growth” stocks whose valuation is disproportionately based on expectations for future revenue growth, as opposed to current earnings.  

Markets Pare Back on Fed Tightening Bets 

US Consumer Price Index data for July surprised to the downside and prompted traders to pare back on aggressive Fed tightening bets. The MoM rate of headline inflation was 0.0% in July, below expectations for a drop to 0.2% from 1.3% in June. The headline YoY rate fell to 8.5% from 9.1% in June, larger than the expected drop to 8.7%.  

Much of the decline in headline prices owed itself to a 20% decline in average gasoline prices in the US in July versus June. But core measures of inflation also contained promising signs. The core index rose at a pace of 0.3% MoM and 5.9% YoY, below expectations for 0.5% and 6.1%, with the former a deceleration on June’s 0.5% MoM increase and the latter remaining unchanged.   

Markets interpreted the data as reducing the need for the Fed to implement a third successive 75 bps rate hike in September. According to the CME’s FedWatch Tool, money markets were last pricing a 62.5% chance that the Fed instead goes with a smaller 50 bps rate hike in September versus 32% one day ago. Analysts were keen to point out that these expectations could easily shift, given that August jobs and CPI data will both be released prior to the Fed’s September confab.  

Meta Rallies After Raising $10B in First Ever Bond Offering, Tesla Shrugs of Musk Stock Sale 

In terms of major individual movers, Meta Platforms was an outperformer, gaining over 5.0% after the owner of Facebook, Instagram and WhatsApp said it had managed to raise $10 billion from its first-ever bond offering. Tesla, meanwhile, managed to gain around 4.0%, despite pre-market news that CEO Elon Musk had recently sold $6.9 billion in stock.

Musk said that he sold the shares in case he loses his ongoing legal battle with Twitter – he is trying to pull out of a deal to buy the company after making a formal offer to buy the micro-blogging site for $54.20 per share earlier this year. Musk accuses Twitter of having misled him by fudging it’s real human versus bot user numbers.

Analysts said that the news isn’t bearish for Tesla as Musk said that if he wins his legal bid not to buy Twitter then he would buy back his Tesla shares. But legal experts seemed to believe that Musk’s latest move to improve his liquidity position means an increased likelihood that he is forced to go ahead with the Twitter acquisition. Twitter’s share price rose over 3.5%, but at just over $44 per share, remains well below Musk’s offer price.

ROSE Price Prediction: Is There More Upside to Come?

Key Insights:

  • ROSE has seen mammoth gains, rising 112% over the last thirty days. 
  • Oasis Labs has partnered with Meta to assess their products based on AI models.
  • The daily simple and exponential moving averages are giving mostly buy signals.

ROSE, the native token of the Oasis Network is up 41% over the last seven days, while the relative strength index (RSI) has entered overbought territory following recent news that the project has inked a deal with Facebook’s parent company, Meta.

Oasis Network is a privacy-focused smart contract platform built using the Cosmos SDK. The project enables secure data-sharing by separating its consensus layer from its contract execution layer, while providing a built-in interface connecting the two for privacy-preserving computation.

Meta Partnership

At the end of last month, Oasis Labs announced a partnership to launch a platform aimed at assessing fairness in Meta’s products while protecting privacy. More specifically, as Meta’s technology partner, Oasis Labs built the platform that uses Secure Multi-Party Computation (SMPC) to safeguard information for surveys in which users voluntarily share their race or ethnicity.

Off the back of this news, ROSE rallied from $0.04809 on July 27 to $0.08546 on 30 July – a 71% spike. The moving average convergence divergence (MACD) line crossed into the positive zone as ROSE hovered around the $0.09 resistance level.

 

ROSE weekly price chart
ROSE 090822 Weekly Price Chart

The Oasis Network crypto then closed the month at $0.09235, a price level it had not seen since June 11 this year, before retreating to $0.07765 by August 2.

ROSE returned to the $0.09 price level again on August 7 and then shot up to $0.113 the following day. Just two months prior to reaching the $0.10 level, the token was trading as low as $0.04565, which represents a 147% gain within that time frame.

While the coin has seen mammoth gains, rising 112% over the last thirty days, investors can zoom out to see that ROSE is a long way off from its high of $0.3826 achieved on February 7, 2022 and 81% below its all-time high (ATH) price of $0.5964 set on January 15, 2022. The cryptocurrency may also be nearing a consolidation phase.

Nonetheless, the Oasis Network token has moved above its 50-day and 100-day simple moving averages (SMA) and the daily RSI has generated bullish divergence. The token is currently trading at $0.111183 and ranks 79th in the list of cryptocurrencies worldwide by market capitalisation at $551 million, having risen over 8% today. Resistance is at $0.1302 while support can be found at $0.0437.

ROSE daily price chart
ROSE 090822 Daily Price Chart

Technical Indicators

Technical analysis shows that short-term sentiment on ROSE is neutral, with 17 indicators displaying bullish signals compared to 12 bearish signals at the time of writing.

The daily simple and exponential moving averages (EMA) are giving mostly buy signals, while the relative strength index stands at 77.5.

An RSI reading of 30 or below indicates an oversold or undervalued condition, while a reading above 70 would suggest the asset is becoming overvalued or overbought.

In terms of an Oasis Network crypto price prediction, ROSE could see its price falling to $0.0863 by September 2022.

FTC Seeks to Quash Meta’s Metaverse Monopoly as Income Slumps

Key Insights:

  • The Federal Trade Commission alleges Meta is breaking antitrust laws.
  • Zuckerberg and co. are trying to buy out another virtual reality company. 
  • Meta profits have declined for the first time in company history.

On July 27, the FTC alleged that Meta, formerly Facebook, and CEO Mark Zuckerberg are attempting an Illegal acquisition to expand its Metaverse empire.

The social media giant is aiming to buy virtual reality firm Within, including its popular VR fitness app, Supernatural.

The complaint was filed in the Northern District of California, accusing Meta of already having a monopoly in the virtual reality sector with the top-selling device (Oculus), a leading app store, seven of the most successful developers, and one of the best-selling apps of all time.

The agency alleged that Meta (META) is trying to illegally buy the fitness app to “prove the value of virtual reality to users.”

Meta Monopoly

FTC Bureau of Competition Deputy Director John Newman said, “Instead of competing on the merits, Meta is trying to buy its way to the top.”

Meta is already the largest provider of virtual reality devices and apps in the United States. In 2014, Zuckerberg and the company bought VR hardware startup Oculus for $2 billion. It has since expanded that empire to include the leading app marketplace, Quest Store, with 400 apps.

The Meta CEO said the company needed to be “completely ubiquitous in killer apps” in an email to executives. The firm has also gobbled up seven of the largest virtual reality studios, including Beat Games studio giving it control of the wildly popular app Beat Saber, a VR rhythm game.

The complaint hinges on the premise that Meta would instead buy out its competition rather than develop its own product to compete with them and offer greater choice for consumers.

“If consummated, the acquisition would substantially lessen competition or tend to create a monopoly,” read the complaint, which stated that it would violate antitrust laws.

Meta has displayed similar tendencies in the past with its acquisition of social media giants Instagram, where it is already testing NFTs and WhatsApp.

The company rejected the allegations claiming in a statement that “The FTC’s case is based on ideology and speculation, not evidence,” before adding, “by attacking this deal … the FTC is sending a chilling message to anyone who wishes to innovate in VR.”

Meta Q2 Losses

The bad news for Zuckerberg and co. has continued this week with the disclosure that its Metaverse division Reality Labs suffered losses of $2.8 billion in the second quarter.

For the first time in its history, company profits have declined in a quarter. Total revenue of $28.8 billion was down just 1% compared to the same period last year, but net income dropped 36% to $6.7 billion.

Meta stock slumped 4.7% in after-hours trading, falling to $161.70. Company shares are currently down 57% from their all-time high in August 2021.

Aptos Labs Raises $150 Million in Series A Round Led by FTX Ventures

Key Insights:

  • The Series A round was co-led by FTX Ventures and Jump Crypto, with participation from Andreessen Horowitz. 
  • Aptos Labs was launched by former Meta employees Mo Shaikh and Avery Ching. 
  • The funds will be used to accelerate the firm’s ventures into the Web3 space. 

Aptos Labs, a Layer 1 blockchain start-up made up of former Meta employees, has raised $150 million in a new funding round led by Jump Crypto and the venture capital arm of cryptocurrency exchange FTX, FTX Ventures.

The Series A round has more than doubled the start-up’s previous valuation, which was over $1 billion in March this year. However, the company has declined to specify its new valuation.

Series A Round

The funding round was co-led by FTX Ventures and Jump Crypto, with participation from Andreessen Horowitz, Apollo, Griffin Gaming Partners, Franklin Templeton, Circle Ventures and Superscrypt. Aptos Labs also continues to receive backing from a16z and Multicoin.

The funds will be used to accelerate the firm’s ventures into the Web3 space as it seeks to determine the demands of the market through collaboration with strategic partners.

The round highlights venture capital’s appetite for budding crypto-focused start-ups despite a downturn in the market. In fact, as of July 14, year-to-date venture capital investments in the crypto and blockchain industries amounts to $17.9 billion, according to JP Morgan.

While the $7.9 billion that global VCs invested in crypto start-ups in the second quarter of this year fell from $9.8 billion in the first quarter, it still represents more than the investments in all of 2020, when crypto start-ups saw $6.5 billion flow in.

Corresponding research from Cointelegraph suggests that venture firms invested $14.67 billion into the sector in the second quarter of this year, matching first-quarter commitments.

All in all, it seems that big money VCs remain bullish on crypto and blockchain start-ups, with this latest funding round being an indicator of such a sentiment.

A Crypto Unicorn

Aptos Labs, which is building a Layer 1 blockchain using Diem’s Move programming language, has stated that its goal is to offer a reliable foundation for Web3 in order to usher in users from “all around the world to experience the benefits of decentralisation”.

The company itself was launched by former Meta employees Mo Shaikh and Avery Ching, who were involved in Mark Zuckerberg’s failed Diem project.

At the start of this year, the Diem Association, formerly known as Libra, officially shut down its stablecoin project amid intense regulatory scrutiny. Diem later announced that it will be selling its intellectual property and other assets to Silvergate for $200 million. The California bank, which serves blockchain companies, had partnered with Diem last year to launch a U.S. dollar-pegged stablecoin.

Overall, Aptos Labs has raised a total of $350 million in funding this year over two rounds.

Does the Crypto Crash Affect Web3’s Future?

Key Insights:

  • Over the last two months, the crypto markets have witnessed massive corrections.
  • The global cryptocurrency market cap has shrunk to $930 billion, but traditional markets are taking a beating too.
  • The Web3 and blockchain market is anticipated to register a CAGR of 45.20% despite the recent crash.

American internet entrepreneur Chris Dixon has defined Web 3.0 as ‘the internet owned by users and builders orchestrated with tokens.’ While Dixon’s definition of Web 3.0 doesn’t describe the entirety of the same, it does, however, present a decent picture of what Web 3.0 is truly capable of.

More often than not, mainstream media and newbies put words like blockchain, NFTs, Web 3, DeFi, and many others under a more significant umbrella term – cryptocurrencies.

Over the last two months, crypto markets have witnessed massive corrections. News pieces and blogs have been filled with narratives of ‘crypto is dead.’ Amid the larger bearish undertone, a lot of critics and analysts have argued whether the recent crash would derail the future of Web 3.0 and blockchain.

So, Is Crypto Dead?

Well, while some say ‘crypto is dead,’ others believe that it could just be playing dead. Even though crypto market enthusiasts are desperately waiting for cryptocurrencies like bitcoin, ether, and altcoins to bounce back with their full might, it wouldn’t be wrong to say that a significant recovery could be a little optimistic for now.

The global cryptocurrency market cap has shrunk to $938.66 billion as of July 7, from the $3 trillion high it touched in November 2021. While numbers present a gloomy picture, it’s not just the crypto market that’s bleeding.

2022 has also been a year of losses for major indexes. High inflation, rising interest rates, and growing concerns about corporate profits and economic growth affect investors’ appetite for risk. The technology-heavy Nasdaq Composite Index is down over 25% through roughly the first six months of 2022, while the S&P 500 Index is down by nearly 20%.

The crypto market has been ravaged by weak global cues amid heightened inflation and interest rate hikes. Crypto investors and traders are now wondering whether the market will bounce back again this year.

While tension and panic continue to plague crypto investors, it needs to be kept in mind that macro market conditions haven’t been ideal. In fact, the higher correlation between cryptocurrencies and the traditional finance markets could be viewed as a positive move as this cloud mean that cryptocurrencies as an asset are maturing.

Innovation Stays Intact

While cryptocurrencies being an asset class, are prone to volatility and price change, pretty much like stocks, blockchain technology on which Dapps are made, and crypto functions is an ever-growing technology.

Notably, a May 5 report by Prophecy Market Insights presented that the global Web 3.0 blockchain market accounted for $1231.54 million in 2020 and is estimated to be $87761.35 million by 2030. The sector is anticipated to register a CAGR of 45.20%.

On the other hand, according to another report, the IT services market is expected to register a CAGR of about 10.36 % during the forecast period, 2022-2027.

Thus, numbers indicate a healthy growth graph for blockchain technology and the Web 3 market. Seemingly, innovation continues to take place even though the price trajectory was largely disappointing for the crypto crowds.

Crypto narratives in mainstream media have also been plagued by standalone events like Terra and Celsius’s collapse over the last few months. The marketwide sell-offs, lower open interest, and larger-scale lay-offs in the crypto market added to the space’s bearish pressure.

A Crypto Recovery Incoming

This isn’t the first time the crypto market is seeing a significant pullback; in 2015, 2018, and then 2020, during the pandemic – the global crypto market has seen its ups and downs. Over the many bear markets and long-drawn price pullbacks, the technology behind cryptocurrencies has only evolved.

Taking a look at the previous market cycles highlights that market volatility and macroeconomic conditions have often affected the price of cryptocurrencies pulling the larger market down. While bear markets give rise to lay-offs and selloffs in the market, portraying doom for the space, it’s only the tip of the iceberg.

As the technology and the Web 3.0 narrative grows, a certain market maturation silently takes place on the side. Nonetheless, critics of the space have long argued that using digital currencies for online interaction gives users a financial motivation to take actions previously freed of commercial incentives. The same could financialize online services and lead to interactions becoming a business.

However, crypto geeks and supporters of the space argue that crypto critics fail to reflect the highly diverse nature of online services.

That said, a lot of traditional finance giants like Amazon, Meta, Google, HSBC, and IBM have also embraced crypto and blockchain. A majority of institutions cite consumer demands and the larger adoption of Web 3 as a reason behind turning towards the space.

Nonetheless, the adoption narrative has received a beating due to the larger bear market. In fact, the bearish blues have slowed down the larger crypto adoption, especially since newcomers are cautious about their entry into the space. However, the crypto crash hasn’t derailed the crypto or Web 3 adoption, if at all, it has delayed the pace of growth.

Meta Is Ambitious Despite Crypto Market Plunge, Plans NFT Launch

Key Insights:

  • Meta is pushing ahead to roll out digital collectibles at a time when the market is witnessing a steep fall.
  • Meta’s fintech chief said that the company would not adjust NFT plans “in any way.”
  • Meta debuted NFT support on Instagram in May.

Non-fungible token (NFT) creators celebrating the launch of NFT support on the Instagram app have good news. Meta, the parent company of Facebook, is planning to launch access to digital collectibles, despite the current crypto market turmoil.

Facebook’s sister firm Instagram made its foray into NFTs, supporting blockchains including – Ethereum (ETH) and Polygon (MATIC) – with plans to include Flow and Solana (SOL) soon.

Meta proceeds with NFT ambitions

The recent sharp fall in the overall cryptocurrency market doesn’t seem to affect Meta’s plans around rolling out digital collectibles to its users.

In a recent interview with the Financial Times, the newly appointed head of fintech, Stephane Kasriel, noted that Meta would not adjust its NFT ambitions “in any way.” He said,

“The opportunity [Meta] sees is for the hundreds of millions or billions of people that are using our apps today to be able to collect digital collectibles, and for the millions of creators out there that could potentially create virtual and digital goods to be able to sell them through our platforms.”

The company CEO Mark Zuckerberg said in May that the firm would soon be testing NFT support on Facebook.

In a bid to attract creators, teens, and young adults, who might otherwise turn towards Chinese-owned TokTok, Meta has been building means to monetize their art or services, Kasriel told FT.

Additionally, earlier this year, an internal document report stated that Meta is not planning to charge creators for their NFTs. Instead, it would allow them to monetize through “fees and/or ads” in the future.

Kasriel added that the blockchain industry had performed a “hype cycle,” where the initial enthusiasm dripped from its peak last year to a “pit of despair” during a bear market. He said,

“There’s a lot of things that are not going to survive.”

Testing NFTs with selected US creators

According to a Meta spokesperson, the company has started slowly rolling out the digital collectibles feature on Facebook to a select group of creators in the United States.

Navdeep Singh, a product manager at Meta, recently shared screenshots of NFTs in the testing phase, which are available to the confined group. The screenshots revealed that NFTs could be posted on the user’s timeline, showing the details about the digital collectible and its creator.

In addition to that, users will have the option to connect their cryptocurrency wallets to their Facebook profiles.

Responding to Singh’s tweet, Martin SFP Bryant, founder of PreSeed Now and a media consultant, wrote that Facebook Groups look “more like Discord.”

Kasriel did not specify what blockchain Facebook NFTs would support. Instead, he noted,

“Technically, this doesn’t have to be on a blockchain — we could build some open developer platform like we’ve done historically. But do you really trust us? If we change the rules of the game, are you going to be upset at us?”

Furthermore, Facebook’s NFTs would be cheaper and easy to buy, unlike other digital collectibles on existing marketplaces that are on the expensive end, Kasriel said.

He said that meta is “proceeding with caution,” and it is still “super early” before going mainstream.

Meta Shelves Failed Cryptocurrency Wallet Project Novi

Key Insights:

  • Novi deposits and withdrawals will cease on September 1.
  • The crypto wallet pilot only ran in Guatemala and selected US locations.
  • Meta has faced increased scrutiny over its crypto and Metaverse ambitions.

In an announcement on its website, the company stated that Novi would no longer be available for use after September 1.

The social media firm’s grand crypto plans have come crashing down along with markets as it phases out the Novi wallet and advises users of the pilot program on how to withdraw funds.

The Novi crypto wallet launched with a pilot program in October in Guatemala and select areas in the United States. It had custody support from U.S. exchange giant Coinbase (COIN) and only had support for the Paxos stablecoin USDP.

Meta’s (META) Diem cryptocurrency also never got off the ground as many of the high-profile partners it had bailed out due to increasing scrutiny from lawmakers and financial regulators.

In a note to customers, Meta stated that starting July 21, users will no longer be able to add money to their accounts.

Tainted History

Novi was initially known as Calibra, and Facebook’s failed cryptocurrency Diem was formerly known as Libra. Mark Zuckerberg wanted to enable transferring money as easy as sending a photo. However, Facebook’s torrid reputation for consumer protection and data privacy soon raised red flags among global lawmakers.

Meta was one of the members of the Diem Association, a group of companies that would ultimately control the digital currency. However, several of them, including MasterCard, Visa, PayPal, eBay, and Stripe, got cold feet and pulled out before it even got off the ground.

There has been a lot of criticism over the premise that the dollar-pegged Diem and Novi were just tools to enable Meta to harvest financial data to disseminate more targeted ads. It is no surprise that the firm has axed all of its digital currency aspirations following the growing global scrutiny.

According to Bloomberg, Meta intends to use Novi’s blockchain technology in future projects, such as its Metaverse ambitions and nonfungible tokens (NFTs). “You can expect to see more from us in the Web3 space because we are very optimistic about the value these technologies can bring to people and businesses in the Metaverse,” said a company spokesperson.

The company’s grand Metaverse plans have also been heavily critiqued for the same reasons as its crypto plans were.

Meta Stock Slide

Tech stocks have been hit hard in this bear market, and Meta Platforms Inc. is no exception. Shares in the company are down 42% since the beginning of this year.

META closed last week’s Friday session at $160.03, having lost 4.8% over the past week. The stock is currently down 58% from its September 2021 all-time high of $379.

Indian Crypto Community Faces Brain Drain, Blames Unclear Regulations

Key Insights:

  • Several crypto and Web3 entrepreneurs in India are now migrating to “crypto-friendly” countries like Dubai.
  • Uncertainty in India’s crypto market and the new taxation laws have prompted the brain drain.
  • Several countries have a tax-less approach toward cryptos that lure businesses to migrate.

It has been a real “quit India movement” for several crypto exchanges and founders who have moved to friendlier locations over the past several years. This is due to the plenty of uncertainties in India’s cryptocurrency market.

For instance, WazirX, owned by the world’s biggest crypto exchange Binance (BNB), saw its co-founders, Nischal Shetty and Siddharth Menon, relocate to Dubai in April.

The company said that it is a “remote-first” organization, although the exchange’s operations continue from its Mumbai headquarters, . Sameer Mhatre, CTO and the company’s third co-founder, would reportedly lead the exchange from India.

In the wake of the Indian government imposing a 30% crypto tax and 1% TDS, among other tight clampdowns, WazirX moving its headquarters to Dubai would be a significant development. The imposition of tax has caused trading volume to drop across all crypto exchanges in India.

ZebPay exchange, operating almost half of all crypto transactions in the country in 2018, shuttered operations and moved to Singapore. Another crypto platform Vauld had a similar story of setting up its operations in Singapore to hedge against regulatory uncertainty.

New tax rules burden Indian exchanges

According to the Indian Express report, top management of crypto and Web3 companies in the country are fleeing to Dubai and Singapore in a bid to find a more crypto-friendly atmosphere.

A top official from India’s largest crypto trading platform noted that the bear market is the phase for crypto companies to build products and solutions. The official noted,

“We are in a bear market right now, and this is the time when products and solutions are built. Some of the biggest companies in the Web 2.0 space, like Google and Facebook, were also built during a slowdown phase. This is why many people who are building crypto and Web 3.0 products are moving to jurisdictions with more policy clarity.”

Per a recent Economic Times report, around 30 to 50 Indian crypto and blockchain entrepreneurs and founders run their businesses out of countries like Dubai and Singapore.

The return of the Reserve Bank of India’s (RBI) push for a crypto ban, similar to its de facto ban in 2018, has contributed to extending the brain drain, local industry stakeholders said.

Akshay Aggarwal, the co-founder of crypto community Blockchained India, told Forkast,

“The country is probably suffering more because of the uncertain stance than anything else. The builders are moving out to register headquarters and pay taxes in foreign jurisdictions.”

Siddharth Sogani, founder and CEO of Crebaco, which performs cryptocurrency and blockchain research, recently tweeted that India would see the largest brain drain in history in the next 8-12 months.

Polygon co-founder Sandeep Nailwal is among the talent pool who moved out of India in 2020. He noted that the mass brain drain is “absolutely crazy.”

“It doesn’t make sense for us or any team to expose their protocols to local risks.”

Potential of operating from crypto-friendly countries

On the other hand, countries like Dubai, the British Virgin Islands, and Singapore top the wish list for relocation, given their taxless approach towards crypto and legalizing the asset class.

For instance, Dubai has set up the Virtual Assets Regulatory Authority (VARA), which attracts investments across the globe, providing a system to protect investors. Profits from selling crypto assets are tax-free, other than 5% VAT.

Similarly, Singapore is among those nations actively promoting the crypto ecosystem, offering incentives to attract talent pools and policy promises to investors.

However, offshore crypto exchanges may still be subject to certain taxes and levies in India. Indrajeet Sircar, legal and tax counseling worldwide at Nishith Desai Associates, told CNBC,

“These could include an equalization levy and obligations to withhold tax against payments made by Indian residents towards purchasing VDAs over such exchanges. There may also be implications under GST depending on how authorities view and classify the services of such exchanges.”

The Sandbox (SAND) Extends Winning Streak to Seven on Metaverse News

Key Insights:

  • It was a bullish Saturday session, with The Sandbox rallying by 16.3%.
  • Metaverse news updates delivered support, with tech giants Meta, Microsoft, and Sony among big names forming the Metaverse Standards Forum.
  • Technical indicators are bullish, with SAND sitting above the 200-day.

On Saturday, The Sandbox (SAND) jumped by 16.3%, supported by metaverse news updates. Following an 8.6% rally on Friday, The Sandbox ended the day at $1.278.

A mixed morning saw SAND fall to an early low of $1.0780 before making a move.

Steering clear of the Major Support Levels, SAND broke through the day’s Major Resistance Levels to a late high of $1.329.

A late pullback, however, saw SAND fall back through the Third Major Resistance Level at $1.3063 to end the day at $1.278.

While finding support from the broader market, Metaverse news updates delivered the breakout session. The Sandbox extended the current winning streak to seven sessions.

Tech Giants Form the Metaverse Standards Forum to Evolve Web3

This week, Epic Games, Meta, Microsoft, and Sony were among a list of tech giants announcing the formation of the Metaverse Standards Forum.

More than 30 names from the tech industry have formed a partnership to support the evolution of the metaverse.

According to the press release,

“The Metaverse Standards Forum brings together leading standards organizations and companies for industry-wide cooperation on interoperability standards needed to build the open metaverse. The forum will explore where the lack of interoperability is holding back metaverse deployment and how the work of Standards Developing Organizations (SDOs) defining and evolving needed standards may be coordinated and accelerated.”

The press release went on to say,

“Open to any organization at no cost, the Forum will focus on pragmatic, action-based projects such as implementation prototyping, hackathons, plugfests, and open-source tooling to accelerate the testing and adoption of metaverse standards, while also developing consistent terminology and deployment guidelines.”

Vishal Shah, vice president of Metaverse at Meta, said,

“Building a metaverse for everyone will require an industry-wide focus on common standards. The Metaverse Standards Forum can drive the collaboration that’s needed to make this possible, and Meta is committed to this work. Creators, developers, and companies will all benefit from the technologies and experiences that will be made possible by common protocols.”

For The Sandbox and other metaverse-related tokens, the new focus on driving the adoption of the metaverse is price positive.

The Sandbox (SAND) Price Action

At the time of writing, SAND was down 0.78% to $1.270.

A mixed start to the day saw SAND rise to an early morning high of $1.294 before falling to a low of $1.248.

SAND left the Support and Resistance Levels untested early on.

SAND on metaverse breakout
SANDUSD 2605 Daily Chart

Technical Indicators

SAND will need to avoid the $1.2285 pivot to target the First Major Resistance Level at $1.3782.

SAND would need broader crypto market support to breakout from the Saturday high of $1.329.

An extended rally would test resistance at $1.40 and the Second Major Resistance Level at $1.4794. The Third Major Resistance Level sits at $1.7303.

A fall through the pivot would bring the First Major Support Level at $1.1277 into play. Barring an extended sell-off, SAND should avoid sub-$1.10. The Second Major Support Level sits at $0.9770.

SAND eyes $1.40
SANDUSD 2605 Hourly Chart

Looking at the EMAs and the 4-hourly candlestick chart (above), it is a bullish signal.

This morning, SAND sat above the 200-day EMA, currently at $1.1740. The 50-day EMA converged on the 100-day EMA, providing support. The 100-day EMA narrowed to the 200-day EMA; SAND price positive.

A bullish cross of the 50-day EMA through the 100-day EMA would support a run at $1.40. However, SAND will need to avoid sub-$1.20 to extend the winning streak to eight sessions.

EMAs bullish
SANDUSD 2605 4 Hourly Chart

Here’s a Complete Guide to Investing in the Metaverse

Key Insights:

  • A massive boom in metaverse’s popularity was witnessed in October 2021. 
  • Global revenue opportunity from the metaverse could approach $800 billion by 2024. 
  • NFTs, metaverse tokens, and virtual land are ways in which one can invest in the crypto space. 

Metaverse and NFTs were the buzzwords of 2021 as both sectors saw a massive rise in market capitalization and general interest.

A massive boom in metaverse’s popularity was witnessed in October 2021, when Facebook made big news by changing its name to Meta. However, there’s much more to the metaverse than Mark Zuckerberg or the social media.

Over the last years, curiosity about the investment opportunities in the metaverse has often crossed traders’ and investors’ minds. However, before investing in the metaverse, it is crucial to know more about the virtual world that investors and institutions are so excited about.

The Metaverse and its Growth

According to many, metaverse technology is the next big tech as it has managed to attract social networks, online game makers, and various technology leaders globally.

In a more general sense, the metaverse can include virtual reality – characterized by usually purposeful virtual worlds that continue to exist. It also has augmented reality that combines aspects of the digital and physical worlds.

Terms like social, shared, virtual, and persistently 3D are used to describe the metaverse technology. According to many, metaverse technology is the convergence of the digital and physical worlds within the evolution of the internet and social networks. Additionally, the metaverse also makes use of real-time 3D software.

Over the last couple of years, mainstream organizations have started to jump on the metaverse bandwagon as customer demand for the technology rises. The idea of the metaverse revolves around an online space where people get to connect and interact with each other.

In fact, the metaverse mania is so immense that in January this year the Tennis Australia partnered with Decentraland to host the Australian Open (AO), which was the first official tennis grand slam in the metaverse.

Likewise, in March 2022, presenters, performers, and nominees, at the Grammys had a virtual reality experience in the metaverse via CEEK. More recently, in April this year, another project partnered with Decentraland to introduce for people to marrying in the metaverse.

Metaverse-centric organizations such as Decentraland, Meta, The Sandbox, and others are also building promising metaverse platforms and projects. Prophecy Market Insights predicted that the Global Metaverse Market accounted for $337.23 million in 2020 and is estimated to be $1003.06 million by 2030. The sector is anticipated to register a CAGR of 11.50% over the years.

A Citibank report highlighted that the metaverse economy could be valued between $8 trillion and $13 trillion by 2030.

So, for a market growing at such a high pace, what are the ways in which one can invest in the space? This article will highlight how one can, directly and indirectly, invest in the metaverse.

Investing in Metaverse for Beginners

A Bloomberg report presented that the global revenue opportunity from the metaverse could approach $800 billion by 2024. With investment opportunities in the metaverse on the rise, it could be a good space for beginners to explore. However, the crypto and metaverse market is a tricky sector that often leaves new investors overwhelmed.

Much like cryptocurrencies, the metaverse allows almost anyone to invest and earn from the space. It’s essential to note that investing in metaverse is not limited to buying crypto-assets infact one can also invest or trade-in stocks of metaverse firms.

There are quite a few publicly traded companies from the metaverse space. Furthermore, beginners can choose from different industries in the metaverse space, including real estate, video games, and entertainment.

Decentraland is one firm that offers users the opportunities to buy virtual land in the metaverse. On the other hand, Meta is one traditional finance firm offering investments in the growing space.

That said, some ways a newcomer can invest in the metaverse include purchasing virtual land and prefabricated metaverse properties. Investors can also look at buying metaverse crypto, which offers a decent exposure, especially to beginners.

More seasoned investors can also look at investing in a metaverse ETF which is often considered to be a lot safer and less volatile. Furthermore, one can look at buying metaverse stocks and creating and flipping NFTs.

Directly Investing in the Metaverse

While investing in metaverse can be done indirectly, too, directly investing in metaverse projects has lured many investors. Over the last year and a half, investing in cryptocurrencies and the metaverse has been one of the most exciting areas in the finance space.

Even though many new investors think of investing in cryptocurrencies like bitcoin and ether as similar to investing in the metaverse, it isn’t always mutually exclusive. In fact, one can invest in cryptocurrencies and the metaverse by taking various approaches.

One way of directly investing in the metaverse can be via cryptocurrencies and digital assets like NFTs in the metaverse space. Another way could be by investing or trading metaverse cryptocurrencies like Decentraland (MANA), The Sandbox (SAND), and Enjin Coin (ENJ).

These metaverse cryptocurrencies can be bought or traded directly from any major crypto exchange like Binance or Coinbase. Multiple assets across the metaverse can be used for buying products and services.

One can also invest in metaverse stocks from prominent firms such as Meta Platforms, Roblox, Microsoft Corporation, NVIDIA, and the Boeing Company, among others. Metaverse real estate is another industry that has seen tremendous growth over the last year.

Market reports have estimated that real estate sales in the metaverse could double in the year 2022. New investors and traders play a huge role in pumping the metaverse space by paying millions of dollars to buy real estate in the metaverse.

One can buy lands on the metaverse with cryptocurrencies like ether, SAND, and MANA. AXS, MANA, THETA, and ENJ are some of the most popular metaverse cryptocurrencies in use. Thus, buying one of these crypto-assets could be the first step to owning land on the metaverse.

As the metaverse technology gains more traction, entrepreneurs and business leaders stand to gain by looking into the space and investing in virtual real estate. Platforms like Decentraland and Otherside offer exciting opportunities in the virtual real estate market.

Staying Safe is the Key

While investing in cryptocurrencies and the metaverse is often seen as a glamorous, get-rich quick scheme investing in projects for their value, ecosystem, market cap, and macro growth is one thing that needs to be kept in mind.

That said, one of the most crucial things in the space is to stay safe and make informed decisions. Most importantly, it is vital to do your research in the market and assess the volatility of this growing space well.

Best Growth Stocks to Buy Now for June 2022

Markets overall continued to trend downward recently on heavy selling action. Geopolitical tensions and uncertainty due to a host of factors, inflation being a big one, caused investors to flee.

However, we’re now seeing an uptick. Markets may have turned a corner. In fact, we recently hit an incredibly bullish indicator that historically has preceded big future returns.

Markets and Big Money in the Last Six Months

At MAPsignals, we follow the Big Money because it tends to produce outlier stocks and drive markets. When price movements occur on big volumes, it’s often intuitions, pension funds, and other “whale” investors influencing the swings. We created the Big Money Index (BMI) to track this activity and help show where markets could go.

When it’s hit oversold in the past, big returns followed. Well, the BMI recently hit oversold levels (the green horizontal line), but as you can see, it’s quickly snapped back:

Chart, histogram

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That’s due to a decrease in selling and more sustained buying:

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We’re seeing lots of buying in the energy sector. The materials, real estate, and industrials sectors are expected to grow too based on earnings, per FactSet. This shows how growth stocks not always tech related. They can be in any in any industry that’s growing.

The best outlier stocks (regardless of sector) have three common traits: strong fundamentals, great technicals, and a history of Big Money activity in the shares. At MAPsignals, we believe Big Money trading can alert you to the forward fundamental picture of a stock. And we want the odds on our side when looking for the highest quality stocks.

Focusing on quality is critical when markets are under pressure. Using the MAPsignals database, we’ve filtered for strong fundamentals and future growth to identify five ideas for potential long-term investment: PXD, COP, ADM, VRTX, & META.

Pioneer Natural Resources Company (PXD) Analysis

Up first is Pioneer, an oil and gas exploration company focused on Texas that pays a current dividend of more than 4.3%.

Even though great stocks can be volatile, like PXD this year, these companies are worthy of attention, especially when they grow earnings and return lots of cash to investors. Check out PXD:

  • 1-month performance (+5.6%)
  • Historical Big Money signals

Just to show you what our Big Money signals look like, have a look at the top buy signals PXD has made over time in the chart below. Blue bars are showing it was likely being bought by a Big Money player, according to MAPsignals.

When you see a lot of them, I call it the stairway to heaven:

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Source: www.MAPsignals.com

But, what about fundamentals? As you can see, PXD’s sales and profits have been strong:

  • 1-year sales growth rate (+154.4%)
  • Profit margin (+11.8%)

ConocoPhillips (ODFL) Analysis

Next up is ConocoPhillips, the huge, global energy company with a nearly 1.6% current dividend.

Check out these technicals for COP:

  • 1-month performance (+13.9%)
  • Historical Big Money signals

Let’s look longer-term. This is the Big Money action on ConocoPhillips since 2016, and it’s clear that if you bought when Big Money was selling, you’d be doing quite well:

Chart

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Source: www.MAPsignals.com

Now let’s dive deeper. As you can see, ConocoPhillips has had double-digit growth in sales and big profits:

  • 3-year sales growth rate (+30.8%)
  • Profit margin (+17.5%)

Archer-Daniels-Midland Company (ADM) Analysis

The third growth stock idea is Archer-Daniels-Midland, the agricultural commodities processor.

Strong candidates for growth usually have Big Money buying the shares. Archer-Daniels-Midland has that. Also, the stock has fallen recently:

  • 1-month performance (-0.2%)
  • Historical Big Money signals

Below are the Big Money signals ADM has made since 2016. That’s the JUICE!

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Source: www.MAPsignals.com

Now let’s look under the hood. Archer-Daniels-Midland’s sales growth is solid. And given its strong sales, valuation, and current 1.8% dividend, I expect more growth in the coming years:

  • 3-year sales growth rate (+10.9%)
  • Forward price-to-earnings ratio (8.2x)

Vertex Pharmaceuticals Incorporated (VRTX) Analysis

Number four on the list is a health care giant and long-time Big Money favorite, Vertex. It creates treatments for the world’s most serious diseases, like cystic fibrosis and muscular dystrophy.

Here are the technicals important to me:

  • 1-month performance (+7.1%)
  • Historical Big Money signals

It’s a hugely successful stock. Below are the Top 20 Big Money buy signals for VRTX since 2018 – it’s been a Top 20 buy more than 20 times since then:

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Source: www.MAPsignals.com

Let’s examine a bit more. Vertex has been growing sales nicely and expects earnings to grow too, likely due to its profit margin:

  • 1-year sales growth rate (+22.5%)
  • 2-year vs. 1-year EPS growth estimate (+7.9%)
  • Profit margin (+30.8%)

Meta Platforms, Inc. (META) Analysis

Our last growth candidate – Meta, the parent company of Facebook and Instagram – is a beaten-down giant in the technology industry. Meta helps connect people worldwide and is a huge player in advertising.

Check out these technicals:

  • YTD performance (-42.0%)
  • Historical Big Money signals

META is more than 270 days from its 52-week high, but believe me, it’s still a high-quality stock. It’s made the MAPsignals Top 20 report many times since 2015:

Source: www.MAPsignals.com

Now look under the hood. META has been growing sales and earnings at big rates, its outlook is solid, and the valuation is attractive:

  • 1-year sales growth rate (+37.2%)
  • 3-year EPS growth rate (+26.4%)
  • 2-year vs. 1-year EPS growth estimate (+19.4%)
  • Forward price-to-earnings ratio (16.7x)

Bottom Line and Explanatory Video

PXD, COP, ADM, VRTX, & META represent top growth stocks to buy now for June 2022. Strong fundamentals and historical Big Money buy signals make these stocks worthy of extra attention for long-term investors, despite being in non-traditional growth sectors or suffering recent dips.

To learn more about MAPsignals’ Big Money process please visit: www.mapsignals.com

Disclosure: the author holds no positions in PXD, COP, ADM, VRTX, or META.

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