Market watchers say Bitcoin and Palantir are connected mainly through investor comparisons and debates about whether Palantir should adopt Bitcoin as part of its corporate treasury strategy. Palantir itself does not hold Bitcoin, but its growth and mission often get discussed in relation to Bitcoin’s role as a resilient, sovereign financial asset (also an arguable description). Some US market observers are referring to Bitcoin as the Trump trade. If os, then Palantir is more the Vance trade because of the close connections with Peter Thiel who owns 3.2% of Palantir.
Palantir’s weekly chart is in corrective mode following negative divergences and breakdowns by both annual momentum and quarterly RSI with the latter dipping below its equilibrium line. Support is at US$126. The last done price on Nov 20 was US$155.
The technical condition of the S&P 500 Index (SPX) continues to weaken. The SPX (at 6,538 as of Nov 20), has fallen to a tad below its 100-day moving average 6,544. Both quarterly momentum and 21-day RSI are in downtrends after forming negative divergences with the SPX. 21-day RSI is at 40, below its equilibrium line. Quarterly momentum remains above its equilibrium line for the time being. The main support for the SPX remains at around 6,500. The all time high of 6,920 was reached on Oct 29 and it appears increasingly likely that the all-time high may take some beating. In the meantime, watch the 6,500 level as a break below this level is likely to indicate a downside objective that could take the SPX to the psychological 6,000 level which coincides with a major support.
See also: STI gains strength as S&P 500 flounders and US risk-free rates creep up
The Straits Times Index (STI) closed at 4,469 on Nov 21, down 69 points week-on-week. The index remains above its rising 50-day moving average at 4,408 and a support area around 4,400. In isolation, this level should hold - give or take 3%. However, if the selling becomes infectious, the Singapore market is unlikely to be spared because of the way global capital moves.
The upsides of 5,000 and 6,000 by JP Morgan, and 10,000 by DBS Group Research are still relevant, but these are longer term upsides.
