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Market Overview

A Dash of Cinnamon

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Hi Everyone,

Studies show that as little as 1/2 teaspoon of cinnamon a day can improve your blood sugar content by 24% and cholesterol levels by 18%. It can also make all the difference when baking a pie.

Many people don’t know this but cinnamon is actually considered to be an extremely volatile spice. Meaning, that it is incredibly complex at the chemical level and can have different interactions when mixed with different ingredients.

Those of you familiar with my writing probably know where I’m going with this already.

Just as a dash of cinnamon can invigorate an otherwise boring recipe, a small percentage of cryptocurrencies can have a powerful effect on any investment portfolio.

This, by the way, is what Wall Street hedge funds are so excited about at the moment.

Beware: just as a small amount of spice can drastically improve things, too much can have a devastating impact on Grandma’s favorite stew. Also, try eating a spoonful of cinnamon by itself and see what happens.

@MatiGreenspan
eToro, Senior Market Analyst

Today’s Highlights

  • In the Swing of Things
  • Brexit Blow Out
  • Steady Bitcoin Hands

Please note: All data, figures & graphs are valid as of July 10th. All trading carries risk. Only risk capital you can afford to lose.

Traditional Markets

As we predicted in last week’s webcast, the market’s reaction to the tariff trade wars seems to be well behind us now.

Many indices have seen some significant gains since the beginning of the week.

So, it’s just about the right time for a shakeup….

As we explained in a previous update (entitled: The Delicate Balance of Power) on February 1st 2017, it seems that Donald Trump’s presidency may indeed have an impact far beyond his 4 or 8 years in office.

Once confirmed, judges on the US Supreme Court serve for life. Until now, the bench was evenly split with 4 liberals, 4 conservatives, and 1 swing vote.

That swing vote was Anthony Kennedy, who Brett Kavanaugh, a staunch conservative, will be replacing.

The article above indicates that now that the Supreme Court has a majority of conservative members, it might pave the way to change American policy on things like abortion and firearms.

However, one thing that stands out about Kavanaugh’s reputation is that he has a tendency to uphold previous court decisions, even when they conflict with his personal views.

As an optimist, I have to say that this might be the best pick we could have hoped for.

Brexit Blow Out

It seems that the Pound was able to withstand the resignation of Brexit Secretary David Davis. Even at this late stage in the EU negotiations, as we indicated in yesterday’s update, the markets seemed to be reacting more to the World Cup.

However, the resignation of Foreign Secretary Boris Johnson was more than the market could resist. In the three hours following the announcement, the GBPUSD fell 150 pips (purple circle) proving that the markets are not immune to Brexit after all.

In the grand scheme of things, it’s not such a large movement and some of it has since recovered. Nonetheless, the reaction is pretty clear.

We’ll need to watch the updates from Prime Minister May’s team as well as Gareth Southgate’s pretty closely going forward.

Crypto Update

The crypto market hasn’t been doing so great over the last 24 hours as most of the top digital assets are seeing mild declines.

EOS & NEO have been hit the worse with double digit losses. Bitcoin on the other hand, has been acting more stable than the rest and only joined the trend in the last few hours.

Over the last few days, it seems the price of Bitcoin has mostly correlated with that of Gold. Here we can see gold in blue and bitcoin in purple.

This leaves me wondering if there might be any sort of connection between the recent decline in crypto assets and the sizable pullback on precious metals. Open to hearing any opinions on this.

Have an awesome day ahead!

This content is provided for information and educational purposes only and should not be considered to be investment advice or recommendation.

The outlook presented is a personal opinion of the analyst and does not represent an official position of eToro.

Past performance is not an indication of future results. All trading involves risk; only risk capital you are prepared to lose.

Cryptocurrencies can widely fluctuate in prices and are not appropriate for all investors. Trading cryptocurrencies is not supervised by any EU regulatory framework.

Best regards,

Mati Greenspan

Senior Market Analyst

Connect with me on….

eToro: @MatiGreenspan | Twitter: @MatiGreenspan | LinkedIn: MatiGreenspan | Facebook:MatiGreenspan

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.6 stars on average, based on 135 rated postsSenior Market Analyst at Etoro.com.




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Market Overview

Market Update: U.S. Stocks Steady After Turbulent Week; Bitcoin ABC Leads Hash War

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U.S stocks finished mostly higher in turbulent trading Friday, as the large-cap S&P 500 Index eked out its second consecutive advance on the back of utilities and energy companies. Cryptocurrencies appear to have stabilized following a $37 billion plunge, as the primary implementation of the bitcoin cash hard fork continued to edge out the competing SV protocol.

Stocks Mostly Higher

After a back-and-forth session, two of three U.S. stock benchmarks closed in positive territory Friday. The S&P 500 Index added 0.2% to 2,736.14, with seven of 11 primary sectors recording gains. Strong performances were recorded for utilities, materials, health care and energy companies, with gains in these sectors offsetting a disappointing day for technology and consumer stocks.

The Dow Jones Industrial Average climbed 123.20 points, or 0.5%, to close at 25,412.47.

Meanwhile, the technology-focused Nasdaq Composite Index pared losses to settle down 0.2% at 7,247.87.

Dollar Correction Deepens

After setting fresh yearly highs earlier in the week, the U.S. dollar has declined in three of the past four sessions as the euro and British pound finally got some reprieve.

The U.S. dollar index (DXY), which tracks the performance of the greenback against a basket of peers, got knocked back to one-week lows after falling to 96.40. It would later consolidate at 96.43, having lost 0.5% from the previous close. The index settled at 97.54 on Monday, its highest since June 2017.

Europe’s common currency, the euro, staged an impressive relief rally Friday, gaining 0.7% to 1.1409 U.S. Pound sterling also recouped Brexit-induced losses, reaching a high of 1.2878 U.S.

The greenback also lost ground to the Canadian dollar, Japanese yen, Swiss frank and Swedish krona – the other four constituents that round out the DXY basket.

Crypto Markets Stabilize as Hash War Rages On

After a precipitous two-day drop, cryptoassets showed signs of stabilizing Friday as market observers zeroed in on the fallout from bitcoin cash’s contentious hard fork. As CCN reports, bitcoin ABC – the primary implementation for BCH – came out on top in the so-called “hash war.” For all the rhetoric employed by Craig Steven Wright, the primary backer of bitcoin SV, the outcome was never really in question.

According to latest industry figures, bitcoin ABC had mined 32 blocks more than bitcoin SV. Bitmain, one of ABC’s primary backers, boasts a hash rate of 20,000 P, which is equivalent to 20 exahash. Those figures were disclosed on Thursday by Jiang Zhuoer, CEO of the China-based miner BTC.TOP. Meanwhile, Roger Ver announced that the Bitcoin.com mining pool now has more hash rate the entire BCH network before the fork. The combined muscle of Bitcoin.com and Bitmain seems to have overpowered the SV camp.

The total cryptocurrency market capitalization found support near $183 billion Friday, recovering some $9 billion from the 13-month low set on Wednesday. Most major assets had gained or lost a few percentage points over the 24-hour cycle.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.6 stars on average, based on 666 rated postsSam Bourgi is Chief Editor to Hacked.com, where he leads content development for one of the world's foremost cryptocurrency resources. Over the past eight years Sam has authored more than 10,000 articles and over 40 whitepapers in the fields of labor market economics, emerging technologies, cryptocurrency and traditional finance. Sam's work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Contact: sam@hacked.com Twitter: @hsbourgi




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Analysis

Pre-Market Analysis And Chartbook: Dollar Dips on Dovish Powell as Brexit Deal Still in Question

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Friday Market Snapshot

Asset Current Value Daily Change
S&P 500 2,711 -0.83%
DAX 30 11,265 -0.78%
WTI Crude Oil 57.59 1.80%
GOLD 1,221 0.66%
Bitcoin 5,555 -0.53%
EUR/USD 1.1380 0.50%

Today is shaping up to be another wild ride in financial markets after the recent volatile sessions, with currencies, bonds, and equities all experiencing heavy trading. The Brexit process, the confusion regarding the US trade tariffs, and the broad bearish technical shift in risk assets are all contributing to the wild moves, and Fed Chair Jerome Powell also increased uncertainty yesterday.

The central banker hinted on possible pause in the Fed’s tightening cycle next year, citing increased economic headwinds following the open attacks form President Trump regarding the “tight” policies of the bank.

As Mario Draghi confirmed the ECB’s quantitative tightening plans as well, the Greenback lost ground compared to most of its peers, even as the main European currencies continue to be under pressure due to the Brexit chaos.

EUR/GBP, 4-Hour Chart Analysis

The Euro and the Pound, which are trading near their yearly lows compared to the Dollar, are stuck in a very volatile broad trading range against each other. The EUR/GBP pair topped out just above 0.90 this year, and although since the August high it drifted back to 0.86, the Pound remains weak from a long-term perspective.

A no-deal Brexit could hurt the British currency more and even a push above the decade-long high near 0.93 could be ahead. Short-term, we expect volatility to remain high in the pair, and in forex markets in general, and a move out of the range could happen soon.

USD/JPY, 4-Hour Chart Analysis

Another possibly important move started in the USD/JPY pair and in gold in recent days, as the broad risk-off shift helped the Yen, with safe-haven flows favoring the currency and the precious metal again.

Following Powell’s dovish words, the pair could be ready to test the 112 level again, especially should the major stock indices continue lower in the coming week. Below 112, the 111.40 and the 110.70 levels provide support, while strong resistance is ahead near 113.70 and 114.50.

Another Selloff in Stocks as Bearish Pressures Mount

Global stock markets are lower today, despite yesterday’s reversal and late-day rally on Wall Street, which was sparked by renewed trade optimism, following rumors on a possible halt of the US tariffs on Chinese goods.

The rumors were quickly denied, but there is more and more evidence that the Trump administration might be changing its aggressive strategy, while China also seems more flexible in light of the economic slowdown and the turmoil in Chinese assets.

FTSE 100 Index CFD, 4-Hour Chart Analysis

The Brexit chaos is also weighing on equities in Europe and across the globe, with British assets clearly being under pressure, despite the rally attempts on the positive headlines regarding the draft withdrawal plan.

For now, the fate of the plans is still highly uncertain, despite the progress made by Theresa May. The hawkish words of Draghi also added to the bearish pressures today, as the Eurozone CPI was in line with expectations.

Nasdaq 100 Futures, 4-Hour Chart Analysis

The major US indices all opened lower today, despite the continued decline in Treasury yields, with clear weakness in the tech sector and small-caps. Industrial Production missed the consensus estimate in October, with a monthly growth of only 0.1%, and the previous reading was also revised lower.

The key benchmarks are not far above the October lows, the recent rally attempts all failed, so given the bearish global technical picture, conditions in equity markets remain hostile for bulls.

ChartBook

Major Stock Indices

S&P 500 Futures, 4-Hour Chart Analysis

Dow 30 Futures, 4-Hour Chart Analysis

VIX (US Volatility Index), 4-Hour Chart Analysis

DAX 30 Index CFD, 4-Hour Chart Analysis

EuroStoxx50 Index CFD, 4-Hour Chart Analysis

Nikkei 225 Futures, 4-Hour Chart Analysis

Shanghai Composite Index CFD, 4-Hour Chart Analysis

EEM (Emerging Markets ETF), 4-Hour Chart Analysis

Forex

EUR/USD, 4-Hour Chart Analysis

GBP/USD, 4-Hour Chart Analysis

AUD/USD, 4-Hour Chart Analysis

Commodities

WTI Crude Oil, 4-Hour Chart Analysis

Gold Futures, 4-Hour Chart Analysis

Copper Futures, 4-Hour Chart Analysis

Featured image from Shutterstock

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.7 stars on average, based on 396 rated postsTrader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.




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Market Overview

What You Want

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Hi Everyone,

For anybody who may be considering the position that the current drama in bitcoin cash reflects poorly on the crypto industry, please know that this entire story was in fact predicted by Satoshi Nakamoto more than 8 years ago.

In fact, this bitcoin cash project serves as a prime example of how strong the idea of bitcoin is. Consider this post from Bitcoin’s founder from June 2010.

“If someone was getting ready to fork a second version, I would have to air a lot of disclaimers about the risks of using a minority version. This is a design where the majority version wins if there’s any disagreement, and that can be pretty ugly for the minority version and I’d rather not go into it, and I don’t have to as long as there’s only one version. ”

You see, the technology and the software are less important when it comes to bitcoin. The idea is what carries weight. To have money that is backed by a consensus of the entire network.

The miners vote with their hashpower, wallet providers and exchanges vote with their code, and the market votes with their feet.

@MatiGreenspan
eToro, Senior Market Analyst

Today’s Highlights

  • Stocks Mixed
  • Pound Pressure
  • Crypto Relaxation

Please note: All data, figures & graphs are valid as of November 16th. All trading carries risk. Only risk capital you can afford to lose.

Traditional Markets

Stock markets are struggling to find a direction today. And to be honest, I’m having trouble finding the words to describe them. The Nikkei is down while China 50 is up, and the European markets opened flat following the capitulation and rebound we saw yesterday.

The US Dollar seems to be coming off its November highs, which seems to be good for commodities. Oil is seeing a nice rebound off psychological support of $55.

FX

Over in the currency markets, the action is being completely dominated by the British Pound Sterling as

And boy has she seen some tough moments. This time though somehow seems different. She insists that she will be able to gather support for her current Brexit plan despite the fact that she’s in a situation where it’s virtually impossible to give everyone what they want.

Volatility on the GBPUSD is now the highest its been since the Brexit referendum.

For those of you who like volatility also check out the GBPJPY pair, which is actually fitting in a nice range.

Crypto Relief Rally

As of this writing all the major cryptoassets, with the exception of Bitcoin Cash, are up over the last 24 hours.

It’s good to see things holding up so steadily with everything going on. Beware though. Many analysts are still seeing this downside breakout as an indication that things might go lower, while the long-term players continue to accumulate at these levels. The next move is anybody’s guess.

Let’s have an amazing weekend!

This content is provided for information and educational purposes only and should not be considered to be investment advice or recommendation.

Past performance is not an indication of future results. All trading involves risk; only risk capital you are prepared to lose.

The outlook presented is a personal opinion of the analyst and does not represent an official position of eToro.

eToro is a multi-asset platform which offers both investing in stocks and cryptocurrencies, as well as trading CFD assets.

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Cryptocurrencies can widely fluctuate in prices and are not appropriate for all investors. Trading cryptocurrencies is not supervised by any EU regulatory framework.

Best regards,
Mati Greenspan
Senior Market Analyst

Connect with me on….

eToro: @MatiGreenspan | Twitter: @MatiGreenspan | LinkedIn: MatiGreenspan | Facebook:MatiGreenspan

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.6 stars on average, based on 135 rated postsSenior Market Analyst at Etoro.com.




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Hacked.com and its team members have pledged to reject any form of advertisement or sponsorships from 3rd parties. We will always be neutral and we strive towards a fully unbiased view on all topics. Whenever an author has a conflicting interest, that should be clearly stated in the post itself with a disclaimer. If you suspect that one of our team members are biased, please notify me immediately at jonas.borchgrevink(at)hacked.com.

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