GM Lark Traders. This is Lark Digest, the trading newsletter that moves as fast as Bitcoin on a fake ETF approval tweet.

And today, that’s good news for you! We had an entire newsletter written up until we heard the FTMO news. So we stayed up late, had a sixth cup of coffee, and here we are.

Today’s agenda:

1. FTMO just banned US traders 😬

2. Why tomorrow could be a huge day for the markets 👀 

🚨 FTMO JUST BANNED US TRADERS 🚨 

We’re barely into 2024, and we’ve already had a whole bunch of shocking things happen.

1. A window randomly blew out on a recent Alaskan Airlines flight.

2. Bitcoin went crazy when a hacker posted on the SEC’s Twitter account that the first Bitcoin ETF was approved (it hasn’t been).

3. Michelle Obama for president?

Well, let’s add to the list.

Yup, last night, word quickly spread that FTMO, the largest prop firm in the industry, was no longer accepting US clients.

Cue the pandemonium.

Jokes aside, this is pretty big news. US traders likely account for a large portion of FTMO’s revenue, and no doubt, they didn’t take this decision lightly.

But rather than joining the panic party, we’d rather share 3 things that are top of mind.

1/ REMEMBER WHAT HAPPENED IN AUGUST? 🤔 

Back in August, for many traders around the world, it felt like the entire prop firm industry was collapsing when My Forex Funds unexpectedly closed due to issues with the CFTC.

That was roughly 5 months ago. And do you see where the industry is today?

Just fine. Still alive. Still thriving.

It didn’t collapse, and traders still have a tremendous opportunity in front of them.

I think this is the best analogy for those concerned with the recent FTMO changes. During times of uncertainty, it’s helpful to be reminded of similar situations when everything turned out just fine.

But the reality is, over the next few days and weeks, we’re going to see a TON of speculation.

People on Twitter will go from traders to lawyers overnight to try and guess why they made the decision that they did.

But the truth is, speculation is useless. Whether their decision is permanent or temporary, the only thing that matters is what’s within your control and what you can do today.

2/ EXISTING ACCOUNTS ARE NOT IMPACTED ✅ 

Regardless of the reason behind FTMO’s decision, it’s interesting and important to note that current US clients are not impacted.

For whatever reason, they decided to accept new US customers no longer; it wasn’t serious enough to close off their services to current US clients.

It’s worth keeping in mind.

3/ WHAT ARE WE DOING AT LARK? 🚀 

The short answer is: Nothing.

And most importantly, we’re not going to have a knee-jerk reaction like many firms had back in August and September.

Throughout 2023, we invested heavily in US and Canadian legal counsel, all of which have confirmed that we’re doing everything correctly.

It’s also important to note that, like My Forex Funds, FTMO has in-house liquidity providers. Unlike us, they’re not working with a third-party broker like Eightcap or ThinkMarkets. And that’s a huge difference.

All of that to say, at Lark, it’s business as usual.

TLDR:

1. Don’t panic. Things change quickly in a young industry. Focus on what’s within your control.

2. FTMO didn’t shut off their services for existing US clients. That’s noteworthy.

3. At Lark, it’s business as usual. US clients are always welcome.

CPI IS COMING IN HOT 🔥 

Okay, let’s get back to trading and making money.

At 8:30 am EST tomorrow, we’ve got the CPI data.

For the young bucks out there who are new to trading, CPI is the average change in prices for everyday goods like food, housing, transportation, etc.

While it might sound boring, it’s actually super important because it’s going to drive interest rate policy.

• If inflation continues to cool 🥶 = more likely to see interest rate cuts.

• If it comes in higher than expected 🥵 = rates will stay high for longer.

The market will be watching very closely because besides the 2024 election, what Jerome Powell does this year will likely be the #1 market mover.

With the YoY rate expected to drop from 4% to 3.8%, this might be the data print that the market needs to really begin pricing in rate cuts. And what do those cuts mean?

Lower rates = a weaker USD and stocks to the moon 📈 

But of course, this isn’t financial advice.

And if you’d prefer to watch paint dry than try and decipher economic reports, our Friday email will have the lowdown for you.

We’ll see you on then!
Matt | CEO