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Market Overview

Dow Jones Sets Fifth Straight Record High; 22,000 In Focus

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The Dow’s meteoric rise continued on Tuesday, with the benchmark index setting its fifth consecutive record high on the heels of upbeat corporate earnings.

Dow 30 Doesn’t Let Up

The Dow Jones Industrial Average added 72.80 points, or 0.3%, to close at 21,963.92. The index came within nine points of 22,000, a milestone that is becoming more likely by the day.

The Dow also rose on Monday, capping off one of its strongest months of the year. The index rose 2.5% in July, boosting its year-to-date return to nearly 11%.

Large-cap stocks were no slouch, either, with the S&P 500 Index adding 1.9% during the month. Meanwhile, rebounding tech shares lifted the Nasdaq to a 3.4% monthly return.

Apple Jumps After-Hours as Earnings Beat

Dow blue-chip and world’s most valuable company Apple Inc. (NASDAQ: AAPL) reported better than expected earnings on Tuesday, sending the stock to new record highs.

The Cupertino-based tech giant posted adjusted per-share earnings of $1.67, well ahead of expectations for $1.57. Revenues climbed to $45.4 billion on the quarter, exceeding expectations of $44.89 billion.

Apple shares were down at the start of the week amid news of an expected delay in delivering the iPhone 8 to store shelves. The next-gen iPhone is expected to be Apple’s most expensive yet. According to various reports, the asking price will start at $1,200.00.

Dollar Woes Continue

The U.S. dollar (DXY) hastened its decline at the start of the week, falling to fresh two-and-a-half year lows against a basket of major currencies. Both the euro and British pound notched solid gains as a result. On Monday, the euro climbed above $1.18 U.S. for the first time since 2014, while the pound re-took $1.32 for the first time since September.

Both currencies weakened on Tuesday. In the case of the euro, the gains may have been too much, too soon.  The common currency remains in overbought territory, according to the daily RSI.

Dow Jones Industrial Average

 

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 604 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.




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Market Overview

Is Cannabis the New Crypto?

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Hi Everyone,

Cannabis stocks have been getting incredibly high lately and through the haze, it’s not difficult to see why. With the recent push towards legalization of cannabis in the United States and breakthroughs in medicinal marijuana,  many are seeing huge potential in this emerging industry.

Now some on Wall Street are asking the question….

For crypto enthusiasts, the answer seems to be no. A poll that I put out on Twitter a few hours ago is showing that many of my followers have a clear opinion on this one.

The great thing is, we don’t really have to make a decision on this one. Luckily, the rules of portfolio management are in favour of diversification. So we can take advantage of many different trends at the same time. In fact, the more we diversify the better.

Of course, similar to crypto-assets, when we see this type of volatility and short-term gains, it’s probably best to treat these stocks as a high-risk investment and therefore they should probably only be a small part of a well-diversified portfolio.

That said if you are interested to diversify into companies that deal in medicinal marijuana, the eToro @CannabisCare CopyPortfolio is still open for new investors today. The full details on that can be seen here.

@MatiGreenspan
eToro, Senior Market Analyst

Today’s Highlights

  • Fighting Fire with Ice
  • New Crypto Hack
  • Ripple in the Market

Please note: All data, figures & graphs are valid as of September 20th. All trading carries risk. Only risk capital you can afford to lose.

Traditional Markets

The Chinese government has seemingly chosen to fight fire with ice.

Yeah, the above headline made me do a double take too.

Yes, China has responded to Trump’s latest round of tariffs with some tariffs of their own, but in conjunction, they are reducing tariffs across the board on some products for all of their trading partners including America.

Stocks in Asia and Europe are enjoying the new sentiment as it indicates a greater level of globalization than we’ve been seeing lately.

Zaif Crypto Hack

Zaif is not safe. The Japanese crypto exchange was just hacked for approximately $60 million worth of BTC, BCH, and something called MonaCoin.

In comparison, the attackers of CoinCheck got away with about $500 million in crypto, and the Mt. Gox hack ended up with losses of around $450 million.

I’m tempted to say that these two price fluctuations were caused by the hack but it does seem that the timing is a bit off.

News of the hack began circulating about 12 hours ago (as of the time of this writing) and the volatility of this chart was over about 6 or 7 hours before that.

Even still, we can see that the end result of the above was higher prices. So the conclusion is that the hack hasn’t affected the market but what is clear is that Japanese companies should probably be investing more in cybersecurity.

Ripple in the Market

Crypto markets have been remarkably stable over the last few months. Sure, there is some FUD in the market surrounding Ethereum prices and their testing of the $200 mark, but even ETH is up 19% over the last 7 days.

The real winner in the graph below is XRP though. Check the blue line with a sudden breakaway from the rest of the crypto market on Tuesday afternoon.

The reason for the spike isn’t entirely apparent but the staff at Ripple Labs seem rather excited about it. As with the above story about Zaif, the market seems to be reacting prior to the news.

The specific story that Garlinghouse was retweeting was published on Ripple.com on Wednesday.

Either way, it is a positive update for the integration of XRP into the US financial system, so the 20% spike actually seems a bit light.

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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4.7 stars on average, based on 128 rated postsSenior Market Analyst at Etoro.com.




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Analysis

Markets Looking for Direction as Dow Eyes All-Time High

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Global stocks have been trading without clear direction so far today, even after Asia kicked off the day in a bullish fashion, with the Shanghai Composite rallying for the second session in a row following Trump’s tariff announcement. The Nikkei retreated a bit after its recent surge, but Europe followed China’s lead and the majority of US stocks are also sporting gains, even as the Nasdaq is in the red, with the likes of Amazon (AMZN), Microsoft (MSFT) and Apple (AAPL) lagging behind.

Dow 30 Index Futures, 4-Hour Chart Analysis

The Dow, which has been relatively strong in the past weeks is outperforming again, thanks now mainly to the jump in mega-cap banks, and the index is edging ever closer to its all-time high from January which is less than 1% away currently. Should the industrial average set a record high, the correction that started with the February mini-crash would be erased by all the US indices, further widening the divergence compared to the rest of the world.

DAX 30 Index CFD, 4-Hour Chart Analysis

Looking closer at Europe, the DAX is trading at its highest level since the first days of the month, similarly to the EuroStoxx50, but the longer-term downtrends are not in danger yet. British assets were in the center of attention today, since the CPI came in higher than expected in the UK, giving a brief boost to the Pound in the generally choppy environment in the Forex segment.

In the US, the housing market provided the most excitement, with building permits significantly missing the consensus estimate of 1.31 million, coming in at 1.23 million, while housing starts beat expectations with 1.28 million units vs. the 1.24 units expected. The sector remains under pressure from rising rates, and activity is clearly below the cycle-peak earlier this year.

US Yields Continue Surge after the BOJ Meeting

2-year US Treasury Yield, 4-Hour Chart Analysis

The upward pressure on yields is apparent today again, with Treasuries plunging and rates rising across the curve. Today, the 30-, 5-, and 2-year yields all hit multi-year highs, and the 10-year yield is also close to the highs it hit in May, as rate hike odds continue to climb before next week’s Fed meeting.

USD/JPY, 4-Hour Chart Analysis

The Bank of Japan didn’t surprise the market today, sticking to its policy despite some recent tightening rumors, and the Yen is virtually unchanged after the decision, with a slight bullish bias.

Gold Futures, 4-Hour Chart Analysis

Commodities are higher today, even as copper gave back most of its early gains, with gold drifting higher towards the $1210 level and WTI crude oil getting back above the key $70 per barrel level. The precious metal is boosted by the slightly weaker Dollar, while oil gained ground after the larger than expected crude inventory draw in the US.

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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4.6 stars on average, based on 348 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

Market Update: U.S. Stocks Rise as Investors Shrug Off Tariff War; XRP Leads Crypto Market Recovery  

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U.S. stocks rebounded sharply on Tuesday, with investors seemingly looking past a worsening trade spat between China and the United States. In cryptocurrencies, XRP surged more than 16% in anticipation of a major commercialization effort by Ripple, Inc.

Stocks Recover Lost Ground

All of Wall Street’s major indexes put up firm gains on Tuesday. The large-cap S&P 500 Index rose 0.5% to 2,904.31, with most major sectors finishing higher. The Dow Jones Industrial Average rose 184.84 points, or 0.7%, to 26,246.96. The technology-driven Nasdaq Composite Index jumped 0.8% to 7,956.11.

On a sectoral basis, consumer discretionary shares were the strongest performers Tuesday, gaining 1.3% as a whole. The S&P 500’s information technology component finished 0.9% higher. Healthcare, energy and industrials also put up firm gains.

The CBOE Volatility Index, also known as the VIX, fell 6.5% to 12.79. The so-called “fear index” surged more than 12% at the start of the week, snapping a five-day losing skid.

Trade-War Escalates

In response to new tariff measures by the Trump administration, China on Tuesday announced it will tax $60 billion in American-made goods. More than 5,000 U.S.-made goods will be targeted in the new round of levies, including meat, alcoholic beverages, automotive parts, clothes and machinery. Levies placed on American products range between 5% and 10%, according to China’s state council.

Hours prior, President Trump said he will impose 10% tariffs on $200 billion in Chinese imports, the most comprehensive measures taken in the yearlong trade spat. The new round of levies will take effect as early as next week.

With respect to China’s countermeasures, Trump issued the following tweet Tuesday morning: “There will be great and fast economic retaliation if our farmers, ranchers and/or industrial workers are targeted!”

Both sides were aiming to return to the negotiating table later this month but those plans appear to have faded. Given China’s massive surplus with the U.S., it is already running out of products to penalize.

XRP Leads Cryptocurrency Rebound

The cryptocurrency market made incremental gains back toward $200 billion on Tuesday after Ripple announced new commercialization efforts for its technology. As a result, XRP surged more than 17% to $0.319, the highest in almost two weeks.

Ethereum exhibited unusual trading activity as prices rose sharply and suddenly over the span of an hour. The second-largest cryptocurrency by market capitalization reached a session high of $222, more than offsetting the previous day’s drop. ETH was last seen trading at $210 for a gain of more than 7%.

Bitcoin also clawed back most of its recent slide, signaling renewed stability in the market.  BTC rose 0.7% to $6,347, based on latest available data.

The total crypto market cap briefly climbed above $200 billion. At the time of writing, the market was valued at $198.7 billion, according to CoinMarketCap.

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 604 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.




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