⏰The Fed Minutes💵

In a nutshell, the minutes have relatively consistent with the recent narrative of the Fed officials. Their action will be more aggressive and tightening will be sooner than later. In particular, the balance sheet run off rate is expected to be at $95 billion per month. Moreover, officials are generally very open to the 0.5% rate hike in the coming meetings which added risk off sentiments. 

Hopefully the market digests it progressively and volatility will starts to settle in nicely. 

💡Bitcoin: Here’s a catalyst💎

Cryptocurrency, in general, has found its footing this month after wobbling in the sea of market correction in the prior months. Since the past week, the rally has been for a while and has helped keep Bitcoin above the $45,000 level since January. It has defended this level and attempted to hit a high of $48,000 recently. 

Some analysts are now looking at the Bitcoin 2022 conference, which will be held from Wednesday to Saturday in Miami. Any positive announcement could help it breaks the $48,300 level, which is the short term resistance of its 200-day moving average. 

Last year, at the event, El Salvador President announced the adoption of Bitcoin as their legal tenders. Hence, there is no doubt on some anticipation of a big fat good news, if any. 

Let’s hope for a great rally ahead and lift us. Pika World is on the cautious side of optimism. 

🧻First Solar: A missing tailwind🔭

As we look into the clean energy sphere, First Solar stood out as it received a downgrade. However, for some investors, the downgrade foreshadowed a positive news by the Department of Commerce that it will look at a potential inquiry on solar panel imports derived from Southeast Asian producers. This should be good news for US manufacturers such as First Solar. 

Nonetheless, First Solar is said to have a weakening comparative technological advantage over some Chinese peers. Moreover, its efficiency on an operational scale is also relatively weakening compared to its peers. This is worsened by the supply chain woes globally. 

Indeed, the company has provided guidance that signals a 13% drop in its gross margin, and only a slight improvement is likely in 2023. As a result, we may not see firm pricing power and maintain a modest stance. 

Pika World has not initiated any new positions in the company.