Good Morning. The term “blue chip” comes from poker, where blue chips hold the highest value. So next time you hear an influencer say trading isn’t gambling, just think pro’s on wall street literally named stocks after poker…
-Jordon Mellor, Patrick Lewis
QUESTION
If you could sit with any trader in the world, but you only get to ask one question, what would be the question you ask?
Reply to this email with your answer.
MARKETS
Markets chopped around the globe, no clear trend, just pockets of action. U.S. stocks dipped, Dow trailing off about a quarter percent. Tech bounced but energy lagged. Europe coasted in tight ranges, waiting for the next catalyst. Asia split (again) the Nikkei held steady, while Shanghai drifted flat. Traders dialed into headlines on inflation and central banks. Oil and commodities flickered on supply moves. Crypto stayed volatile but shrugged off the noise.
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MARKET ANALYSIS
CNBC posted this article, which is great for information, but it doesn’t help traders, so I am going to write it my way, so you know what the hell is going on. The 10-year Treasury yield is ticking up, now at 4.35%. This is a warning shot for volatility across all asset classes.
Strong ISM data killed the rate-cut fantasy. The Fed probably parks rates this week, but Powell’s speech is the real show. Any hint of “higher for longer” and bonds will puke, USD catches a bid, and tech stocks get smoked.
Watch the 10-year and 30-year like your P&L depends on it. TLT puts or inverse ETFs heavy in play. If Powell leans hawkish, the dollar rips, look at DXY, EUR/USD, USD/JPY for fast trades. Tech and growth names are punching bag if rates stay high. QQQ will get wild. Banks like higher yields, so $XLF ( ▲ 0.51% ) might buck the trend.
Gold eats dirt when yields spike (I never loved it anyway). Short setups could be easy money if the Fed stays tough. Bitcoin always whips around on Fed days, so don’t leave your stop-losses hanging.
Ignore the Trump circus, stick to the price action. This Fed meeting isn’t about a rate move, it’s about what comes next. Stay light on your feet. Don’t overthink macro -JM
CRYPTO
Pump.fun just smoked Ethereum in fee revenue for 2025, $294 million vs. $249 million. On a platform where you spin up meme coins in 30 seconds flat, the volume is nuts. People are lobbing cash at tokens that probably won’t last longer than a TikTok trend, but nobody cares. It’s the casino vibe, pure speculation, no utility theater.
You don’t need to know jack about smart contracts. Just toss your idea up, let the bots and degens pile in, and rake in the chaos fees. Each trade on their bonding curve clips 1%. When a token “graduates” to PumpSwap, that’s another cut. The system prints money off sheer volume and the churn.
While Ethereum’s making money off “serious” DeFi and NFT markets, Pump.fun is letting anyone gamble on memes and nonsense. Most tokens are DOA or straight-up rugs, but users treat it like scratch-offs. Regulators are sniffing around but good luck slowing this down, people want their dopamine hits.
This is about having fun and maybe catching a moonshot. Pump.fun showed that for a fat chunk of the crypto crowd, speculation is the point. If you’re still waiting for “mass adoption” via some fancy killer app, maybe you faded the wrong trend. Sometimes crypto’s just about letting it ride and seeing if you can cash out before the curtain drops. -PL
GAMES
I’m not tech, I’m not gold,
I grow where it’s hot and sold when it’s cold.
Traders don’t eat me, but I move like a meal.
Weather, war, or exports, I’m kind of a big deal.
What am I?
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ANSWER
Soybeans (Bonus if you talk to Jonathan about soybeans because he loves that asset)