Connect with us

Market Overview

Big Data Big Problems

Published

on

Famous Stocks commentator Jim Cramer was on the news yesterday saying how Facebook’s trouble’s should not influence the other stocks in the elite tech quartet known on Wall Street as FAANG. (Facebook, Apple, Amazon, Netflix, and Google)

// -- Discuss and ask questions in our community on Workplace.

Jim should probably read his own blog to find out why this is happening. The website www.TheStreet.com, which was founded by Cramer himself posted the following headline.

The author draws some remarkable comparisons to the housing market’s contribution to the 2008 financial crisis and what we’re seeing now with big data. The revolutionary eye opener for me was this little factoid….

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

In his apology yesterday, Mark Zuckerberg not only admitted guilt he acknowledged that more regulation is necessary. He practically pleaded for regulators to step in and oversee the use of personal data.

If you’ll recall, the root cause of the collapse a decade ago was the market realization that all this debt that was being sold to investors as high yield and low risk was suddenly reevaluated.

The European Union is now in the process of implementing the all-new data protection plan known as GDPR, which prohibits companies from using their user’s data for any reason without express and transparent approval.

So what happens now to all of this “valuable” data going forward?

@MatiGreenspan
eToro, Senior Market Analyst

Today’s Highlights

  • Powell Pill
  • Gold and Oil
  • All Tethered

Please note: All data, figures & graphs are valid as of March 22nd. All trading carries risk. Only risk capital you can afford to lose.

Traditional Markets

Markets cheered as new Fed boss Jerome Powell pulled the trigger raising the interest rate in the United States by 0.25%. The excitement didn’t last long though.

It wasn’t necessarily anything that he said but somewhere in the middle of his press conference stocks started to turn sour. It was certainly an action-packed event with the major indexes going from new highs to new lows in a matter of moments.

On the other side of the world of course, the effects of the US interest rate are being felt in different ways. Australia for example woke up to this awkward headline.

Though Japan had a nice session this morning, by now the Japanese and the rest of the stocks are in decline.

Another thing that I noticed is that gold may be stepping in again as a safe haven play. We’ve been discussing how gold is still near the top of its range and so is difficult to place a buy order.

Here’s a reminder of the relevant range…

So the interesting thing is that over the last few days it does seem like we’re getting a bit of that back and Gold is now trading in opposition to the Nasdaq…

Oil is also on the rise as inventory data released yesterday (blue circle) is yet another indication that the multi-year supply glut that has been plaguing the market may be showing signs of abating.

The breakout of the long-running wedge could also play some significance for technical analysts and we may soon be testing the highs again.

More Crypto Regs Coming

The Crypto market has had a nice push off the lows but is declining slightly this morning. The news that Tether has introduced another $300 Million USDT tokens is worrying some alternative investors.

On the other hand, we have some important updates from global regulators that have been very positive. Japan’s FSA authorities have just hosted the first ever multi-national Blockchain Roundtable for central bankers and South Korea is now reportedly also doing their best to encourage blockchain development for user protection.

Up next is the UK, with Chancellor of the Exchequer Philip Hammond putting together a crypto task force later today.

On the charts, the cryptos still seem under-pressure, but in the news things are looking pretty positive right now.

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

eToro: @MatiGreenspan | Twitter: @MatiGreenspan | LinkedIn: 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.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
5 votes, average: 4.00 out of 55 votes, average: 4.00 out of 55 votes, average: 4.00 out of 55 votes, average: 4.00 out of 55 votes, average: 4.00 out of 5 (5 votes, average: 4.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.6 stars on average, based on 68 rated postsSenior Market Analyst at Etoro.com.




Feedback or Requests?

Market Overview

Market Update: Consumer Staples Sink S&P 500 Index; Cryptocurrency Prices Rise $16 Billion

Published

on

U.S. stocks declined on Thursday, as consumer staples posted heavy losses amid corporate earnings season. Meanwhile, a broad recovery in altcoins led the digital currency market sharply higher.

// -- Discuss and ask questions in our community on Workplace.

Stocks Decline

All of Wall Street’s major indexes headed for losses, with the S&P 500 Index falling 0.6% to 2,693.13. Nine of 11 sectors contributed to the decline, with the consumer staples component plunging 3.1%.

Within the sector, tobacco plunged 11.5% after Philip Morris International Inc. (PM) posted first-quarter revenue that trailed forecasts.

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

Information technology shares also fell 1.1%, with Apple among the worst-performing companies in the sector.

The technology-driven Nasdaq Composite Index closed down 0.8% at 7,238.06. The Dow Jones Industrial Average also fell 83.18 points, or 0.3%, to finish at 24,664.89.

A measure of 30-day volatility known as the CBOE VIX reached a high of 16.92, which was still well below the historic average. The so-called “fear index” settled at 15.96 for a gain of only 2.3%.

If after-hours trading is any indication, volatility could be on the rise on Friday. Several shares plunged after the bell following disappointing corporate earnings.

Sketchers (SKX) fell 23%, Atlassian (TEAM) declined 11.3% and E*Trade (ETFC) was down more than 1%.

Cryptocurrency Rally Intensifies

Crypto assets extended their recovery on Thursday, with the most popular altcoins leading the rally.

Ethereum rose 7.8% to $563, Ripple XRP gained 9.4% to $0.77 and bitcoin cash climbed 9.4% to $963.49 (all figures according to CoinMarketCap). Bitcoin also recorded gains, rising 1.4% to $8,287.88.As a result, the total value of the cryptocurrency market reached $358.4 billion, the highest since Mar. 14.

The rally coincided with the end of U.S. tax season after the IRS extended the reporting deadline by 24 hours. U.S. cryptocurrency traders may have been on the hook for as much as $25 billion in capital gains taxes, based on recent estimates. However, that number has not been confirmed.

The market’s impressive recovery comes even as nations such as India introduce new restrictions of digital currency trading. Earlier this month, the Reserve Bank of India banned regulated banks from facilitating cryptocurrency purchases.

While India is among the world’s fastest-growing nations, it is a small player in the cryptocurrency market. News of the crackdown sent bitcoin prices to a low of $5,400 on domestic exchanges. Bitcoin is still trading at a discount on Indian exchanges, although the spread is less than $200, based on Unocoin exchange data.

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.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
1 vote, average: 5.00 out of 51 vote, average: 5.00 out of 51 vote, average: 5.00 out of 51 vote, average: 5.00 out of 51 vote, average: 5.00 out of 5 (1 votes, average: 5.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.5 stars on average, based on 335 rated postsSam Bourgi is Chief Editor to Hacked.com, where he specializes in cryptocurrency, economics and the broader financial markets. Sam has nearly eight years of progressive experience as an analyst, writer and financial market commentator where he has contributed to the world's foremost newscasts.




Feedback or Requests?

Continue Reading

Analysis

Rally Fades in Stocks as Apple Weighs on Nasdaq

Published

on

We warned yesterday that stock markets got vulnerable as the major US indices reached short-term overbought readings, and after a choppy Wednesday session, equities turned lower today in early trading. Apple fell by more than 2% in early trading on a supplier report regarding declining orders from the smartphone giant, and the sliding stock dragged the tech segment lower.

// -- Discuss and ask questions in our community on Workplace.

S&P 500 Futures, 4-Hour Chart Analysis

While the short-term technical picture deteriorated, the losses are muted so far, and the rising short-term trendlines are holding up. Volatility ticked higher, with the VIX bouncing off its two-month lows, but the index is well below the levels seen in the beginning of the month, as Syria-related fears continued to ease and the Chinese-US trade spat also took the back seat in the mainstream media.

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

DAX, 4-Hour Chart Analysis

Stocks finished broadly lower in Europe, while Asian equities reversed their early gains, with trading volumes still being low across the board. The economic calendar was almost empty today, with only the much worse than expected British retail sales figure adding to the string of negative surprises coming out form the UK this week. In the US, the Philly Fed index came in higher than expected, while weekly jobless claims were in line with expectations.

Dollar Stable as Short Yields Hit New Highs

2-Year Treasury Yields, 4-Hour Chart Analysis

Treasury yields resumed their rise in the quiet environment, and as the short end of the curve continues to outperform the flattening of the yield curve continues in earnest. While forex markets are still mostly flat, the Dollar is drifting higher against most of its peers in US trading.

AUD/USD, 4-Hour Chart Analysis

Commodity-related currencies are little changed, although both the Aussie and the Canadian Dollar are off their recent highs, and should they roll over, the bullish case would receive another hit.  Despite the weakening of the risk rally, crude oil continues to hit multi-year highs, with the WTI contract getting close to the $70 per dollar level today. Gold fell back below $1350, as the choppy consolidation pattern is still intact, and the slight risk-off shift wasn’t enough to trigger meaningful safe-haven flows.

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.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
1 vote, average: 5.00 out of 51 vote, average: 5.00 out of 51 vote, average: 5.00 out of 51 vote, average: 5.00 out of 51 vote, average: 5.00 out of 5 (1 votes, average: 5.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.5 stars on average, based on 225 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.




Feedback or Requests?

Continue Reading

Market Overview

Market Update: S&P 500 Notches Third Straight Rally on Earnings; Cryptocurrencies Hit $340 Billion

Published

on

U.S. stocks finished mostly higher on Wednesday, as earnings optimism lifted the S&P 500 Index and Nasdaq to their third consecutive daily advance. Meanwhile, cryptocurrencies resumed their uptrend after a two-day pause as bitcoin returned above $8,000 and bitcoin cash surged double-digits.

// -- Discuss and ask questions in our community on Workplace.

Stocks Finish Mostly Higher

Two out of the three major U.S. indexes notched gains, with the S&P 500 Index edging up 0.1% to 2,708.64.

Four of 11 sectors contributed to the rally, with energy shares jumping 1.6%. Other commodity-sensitive sectors such as materials and industrials also reported firm gains.

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

The biggest laggards on Monday included consumer staples and financials, which fell 0.9% and 0.4%, respectively.

The technology-laden Nasdaq Composite Index rose 0.2% to finish at 7,295.24.

Meanwhile, the Dow Jones Industrial Average fell 38.56 points, or 0.2%, to close at 24,748.07. The blue-chip index is coming off two straight sessions of 200-point gains.

A measure of implied volatility known as the CBOE VIX rose 2.3% to 15.60, which was still well below the historic average near 20. Volatility has been creeping lower in anticipation of strong quarterly earnings from U.S. firms.

The first round of Q1 reports have not disappointed, with major banks and technology companies reporting above-trend growth. Analysts at FactSet are forecasting the strongest quarter of year-over-year growth since 2011.

Cryptos Extend Rally

After initial hesitation, the cryptocurrency market rose on Wednesday as the end of tax season offered temporary reprieve to volatility.

The total market cap for all cryptos in circulation reached a high of $342 billion, according to CoinMarketCap. That was a gain of $19 billion on the day and the highest in almost a month.

Bitcoin cash (BCH) was the biggest gainer percentage-wise, climbing nearly 16% to $880 per coin on the major exchanges. Original bitcoin (BTC) advanced 3.4% to $8,190. However, its total share of the market fell below 41%.

Other major cryptocurrencies also contributed to the rally, with Ethereum adding 3.3% to $521 and Ripple XRP gaining 7.6% to settle at $0.71.

There was no immediate catalyst for the recovery, although tax relief may have played a role. The IRS extended its deadline for U.S. tax filing by one day after servers overloaded on deadline day.

Americans cryptocurrency holders may have owed as much as $25 billion in capital gains taxes, according to Tom Lee of Fundstrat Global Advisors. However, data from Credit Karma showed that less than 100 of its 250,000 filers have reported cryptocurrency-related capital gains.

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.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
0 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 5 (0 votes, average: 0.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.5 stars on average, based on 335 rated postsSam Bourgi is Chief Editor to Hacked.com, where he specializes in cryptocurrency, economics and the broader financial markets. Sam has nearly eight years of progressive experience as an analyst, writer and financial market commentator where he has contributed to the world's foremost newscasts.




Feedback or Requests?

Continue Reading

Recent Comments

Recent Posts

A part of CCN

Hacked.com is Neutral and Unbiased

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.

Trending