Big Data Big Problems

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)

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….

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

Author:
Senior Market Analyst at Etoro.com.