Connect with us

Market Overview

Four Empty Seats

Published

on

Today we say farewell to one of my favorite bankers Stanely Fischer who has officially resigned from his position as Vice Chairman of the Federal Reserve Bank in the United States.

Many times when a big banker gives up a big job it’s in order to make room for a bigger one. Like when Fischer resigned from the Bank of Israel in order to take a job at the US Fed a few months later. This doesn’t seem to be the case this time. He’s 73 now, and really, what better position could he go after?

Bankers and politicians are not usually my favorite but for some reason, Stanley inspired me. Perhaps it’s the way that he speaks Hebrew. His knowledge and economic vocabulary is so high that most people don’t understand him and his American accent is so thick that it’s almost humorous.

Here’s an example: https://youtu.be/K6w1hqvRCKk

Now try turning on Youtube’s captions (cc button at the bottom of the video). You won’t regret it.

In any case, Fischer’s resignation provides Trump with a unique opportunity to reshape the Federal Reserve in his own image. At this point, four out of the seven seats at the Fed are unfilled and the bosses chair will become vacant for the President to fill once Janet Yellen’s term expires on February 3rd.

@MatiGreenspan
eToro, Senior Market Analyst

 

Please note: All data, figures, and stats below are valid as of September 7th. All trading carries risk. Only risk capital you can afford to lose.

Trump Update

Donald Trump has made at least three potentially market moving headlines recently. Let’s take a look…

1. Avoiding a government shutdown. Markets have become used to the debt ceiling debates coming down to the wire. Yesterday, Trump denied them that opportunity by making an agreement way ahead of the deadline at the end of September.

Not only that, the deal that he made was not with his own party. Instead, Donald opted for a plan that was put forth by the Democrats. A particularly genius political move.

This spending bill will push off a government shutdown at least until December 15th, when a more permanent budget will need to be implemented.

2. The spending bill did not include funds for the wall. That may come up again in December. It did however include some much needed aid for the citizens of Texas to help them recover from the extensive damage done by Hurricane Harvey.

After devastating entire cities in the Caribbean, another hurricane, Hurricane Irma is on its way to Florida at the moment. We hope that everything turns out alright there but are prepared for the worst.

3. Repealing DACA. Trump gave the order to deport close to 800,000 young immigrants who are currently in the US under a directive from President Obama.

Journalists in the US are now preparing headlines that will no doubt tug at the heart strings of the American electorate about individual stories of kids who are being ripped from their houses to be sent to the third world.

Good thing Trump doesn’t need to worry about approval ratings from the public for at least another 2.5 years. Until then, his battles will mostly on the political stage.

European Interests

Today the European Central Bank will deliver their rate decision followed by a much anticipated press conference with Mario Draghi.

The Euro is in trouble.

The ECB currently has a very aggressive monetary plan that includes €60 Billion a month being injected into the economy. Draghi has recently hinted that they might be considering to reduce that amount. These hints were met with investors driving up the price of the Euro.

…and why not?

Political risks in the European Union are down significantly. The Greek situation isn’t resolved but at least is safely under the rug at this point. And the US Dollar has been sliding consistently since the beginning of the year.

Until this morning, many analysts were expecting some sort of decision about what the ECB will do next to come at this meeting. However, just today a survey from Reuters indicated that the decision may be postponed until October.

So, today we’ll look especially closely at every word for any hint as to what that decision may be. Even the slightest facial expression or misplaced cough has the potential to move the market by leaps and bounds in this speech.

Any indication that the economy is improving or that stimulus is less needed can push the single currency even higher. Either way, whatever happens, today, know that we’ll be having this same decision in a month. For those of you with patience, this could provide an excellent opportunity.

Crypto Update

The update is that there is no update.

The markets have almost fully recovered from the news that China will be banning ICOs. However, they were already in correction mode before that news broke.

So at this point, things are rather flat as traders await the next direction.

Will they catapult to new all time highs or are we in for another massive correction?

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.

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...

4.6 stars on average, based on 152 rated postsSenior Market Analyst at Etoro.com.




Feedback or Requests?

1 Comment

1 Comment

  1. embersburnbrightly

    September 7, 2017 at 8:49 pm

    I don’t generally anticipate laughing like a madman from a visit to Hacked.com, but that is exactly what happened when I followed your recommendation to watch the video above with the captions turned on. Thank you for that! 🙂

You must be logged in to post a comment Login

Leave a Reply

Market Overview

U.S. Stocks Post Biggest Drop in Two Weeks as Business Investment Spells Trouble for the Economy

Published

on

The U.S. stock market declined on Thursday, snapping a three-day winning streak and heading for its worst loss in two weeks after the latest report on durable goods revealed a sharp slowdown in business investment. Crypto markets corrected lower as trade volumes continued to unwind from their yearly peak.

Stocks Retreat

All of Wall Street’s benchmark indexes headed for losses, with the Dow Jones Industrial Average falling 103.81 points, or 0.4%, to close at 25,850.63. The broad S&P 500 Index fell 0.4% to 2,774.88, with seven of 11 primary industries reporting losses. The technology-focused Nasdaq Composite Index closed down 0.4% at 7,459.71.

Disappointing quarterly results weighed on the major indexes after Domino’s Pizza Inc. (DPZ) reported earnings and revenue that disappointed investors. Hormel Foods Corporation (HRL) also missed analysts’ expectations.

S&P 500 companies have mostly beaten quarterly earnings estimates, but that could soon change, according to FactSet. The research firm anticipates a sharp downturn in profitability for Q1 2019 based on January EPS estimates. More on that story can be found here.

Economic Data Mostly Positive, with One Big Caveat

U.S. economic indicators were largely positive on Thursday, with one very big caveat: a gauge of business investment fell for the fourth time in five months.

The Commerce Department reported on Thursday that durable goods orders – a proxy for manufacturing demand – rose at a seasonally adjusted 1.2% in December. When removing the volatile transportation category, orders rose at a much slower 0.1% pace. A closer look at the report revealed that new orders for nondefense capital goods, a bellwether for business investment, fell 0.7% in December. Clearly, American businesses are feeling the effects of global economic uncertainty.

Most of the other major releases Thursday were positive. Initial jobless claims fell by 23,000 to a seasonally adjusted 216,000 in the latest week, the Labor Department said.

A measure of U.S. private-sector business known as the Composite purchasing managers’ index (PMI) improved to eight-month highs in February. Markit’s PMI gauge climbed to 55.8 from 54.4 in January. All of the monthly gains were attributed to the services sector, which accounts for the vast majority of economic output.

Cryptocurrencies See Minor Pullback

The major cryptocurrencies posted modest declines on Thursday, as the total market cap fell by around $3 billion. Daily exchange trading has also fallen by roughly $10 billion from its peak on Tuesday. As far as we can tell, the daily turnover printed on Tuesday was the highest in at least ten months.

Crypto Update: Litecoin Leads Pullback in Majors

Litecoin (LTC) led the pivot lower among the majors, falling 4% to $49.12. The LTC price peaked at four-month highs earlier this week.

Bitcoin cash (BCH) posted a drop of 2.9% to $142.72. XRP`s price broke below 32 cents after falling 2.4%. Ethereum (ETH) edged down 1.2% to $145.83.

Losses for Bitcoin (BTC) were capped at 1% during the day. It was last down 0.9% at %3,948.36, according to aggregate data from 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.

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...

4.7 stars on average, based on 773 rated postsChief Editor to Hacked.com and Contributor to CCN.com, Sam Bourgi has spent the past nine years focused on economics, markets and cryptocurrencies. His work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Avid crypto watchers and those with a libertarian persuasion can follow him on twitter at @hsbourgi




Feedback or Requests?

Continue Reading

Market Overview

U.S. Stocks Rise as Fed Confirms Dovish Pivot

Published

on

U.S. stocks extended their gains Wednesday after the Federal Reserve offered further reassurance that it will hold off on raising interest rates for the time being. Cryptocurrencies reported a mixture of modest gains and losses as volumes backed off from their yearly highs.

Stocks Extend Rally

The Dow Jones Industrial Average climbed 63.12 points, or 0.2%, to close at 25,954,44. The blue-chip index has risen in five of the past six sessions and looks poised to reach 26,000 this week.

The broad S&P 500 Index finished up 0.2% to 2,784.70. Materials stocks led six of 11 primary sectors higher, with most of the gains concentrated in primary industry.

Meanwhile, the Nasdaq Composite Index pared gains to finish flat at 7,489.07.

Stocks are in the midst of an eight-week rally, but the following chart spells trouble for the S&P 500 Index.

Fed Puts on the Brakes

The Federal Reserve on Wednesday provided more details as to why it decided to be patient with normalizing monetary policy. In the official transcript of last month’s meeting, Federal Open Market Committee (FOMC) members cited stock market volatility and weaker global economic growth as the main obstacles standing in the way of policy normalization.

According to the minutes, there were a “variety of considerations that supported a patient approach.” Additionally, “a patient posture would allow time for a clearer picture of the international trade policy situation and the state of the global economy to emerge and, in particular, could allow policymakers to reach a firmer judgment about the extent and persistence of the economic slowdown in Europe and China.”

The Fed’s dovish pivot last month allowed the stock market to extend a bullish revival that began just after Christmas. Central bankers will hold their next policy meeting next month. The March interest rate statement will be accompanied by a revised summary of economic projections covering GDP, unemployment and inflation.

Crypto Markets Flatline

The combined value of all cryptocurrencies hovered north of $135 billion on Wednesday, where it was little changed compared with the previous day. Markets succumbed to a fresh wave of selling overnight, as bitcoin and the major altocins reported modest declines. By the early morning, most of the losses had disappeared.

Trading volumes dipped below $30 billion but were well off the highs from Tuesday. An influx of capital into the crypto ecosystem could make for volatile trading conditions in the near term.

Bitcoin was last seen trading at $3,983.49, according to CoinMarketCap, an aggregate data provider. The bitcoin price is trading hands well north of $4,000 on Bitfinex.

Ethereum’s price was little changed at $147.83. XRP edged down 1.7% to $0.30275. EOS extended its rally, climbing 5.3% to $3.84. Read more: Litecoin, EOS, Binance Coin, Maker: Altcoins Leading the Charge.

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...

4.7 stars on average, based on 773 rated postsChief Editor to Hacked.com and Contributor to CCN.com, Sam Bourgi has spent the past nine years focused on economics, markets and cryptocurrencies. His work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Avid crypto watchers and those with a libertarian persuasion can follow him on twitter at @hsbourgi




Feedback or Requests?

Continue Reading

Market Overview

USA is Ready to Invest in Crypto

Published

on

Hi Everyone,

In our ongoing effort to bring crypto to the general public, we’ve done yet another survey, this time focusing on online traders in the USA.

The results are clear as day, the United States is more than ready to invest in crypto.

Definitely make sure to read the full report with all the jaw-dropping stats and the methodology of the poll. This is extremely encouraging.

@MatiGreenspan
eToro, Senior Market Analyst

Today’s Highlights

  • US-China trade deadline: 9 days | Days to Brexit: 37
  • Unsustainable Trajectory
  • Crypto Rally Stalls

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

Traditional Markets

Everyone will stop what they’re doing at 2:00 PM New York time today to take in the FOMC‘s meeting minutes. During their last meeting, the Fed did a complete 180 on policy, which many have pointed to as a complete capitulation to the market’s desires. So, when they release the minutes of that meeting it will be extremely interesting to hear what they have to say.

It’s becoming increasingly clear that there will not likely be any final deal between the US and China by March 1st. It’s also becoming increasingly clear that this deadline was never very significant in the first place. Trump has indicated that he’s willing to let the deadline slide if significant progress is being made, and many feel that it is, however, until we get final confirmation of that it will remain in our countdown above. It wouldn’t be the first time Trump changed his mind at the last moment.

As well, I’ve decided to leave the Brexit countdown timer set for March 29th, the day Article 50 kicks in, rather than the new self-imposed deadline that Parliament put on their Prime Minister.

Markets are now returning to their normal levels of volatility.

Trajectory Unsustainable

After crashing in January and making a huge comeback in January, financial markets are now remarkably average.

The 200-day moving average (blue line) shows us the average price of the last 200 days and is one of the most widely watched indicators among technical analysts. Here we can see that the Nasdaq 100 is now at this level.

Many analysts were quick to point out that if we ignore 2018 and look only at the stock market performance from January 1st, we’re actually seeing stellar results.

Some pundits even take this a step further. Here’s a graph posted by @StockCats who pointed out that the current trajectory of the markets does look a bit unsustainable.

Crypto Rally Stalled – Where to Next?

Let’s face it, these last few days have been amazing. However, even within this longest crypto bear market of all time, there have been rallies before that ended up fizzling out. So, even though it’s possible we go to the moon from here, it certainly pays to be cautious.

One thing that’s interesting to me is the different spins that some of the mainstream media are putting on this. The Independent is saying that it’s because of the Galaxy S10 Crypto Wallet…

…while Bloomberg is saying that…

Forbes, on the other hand, seemed to focus on the altcoin markets.

For me, it’s pretty clear that this whole thing began due to a shortage in Ethereum creation. As I explained in an interview with BlockTV yesterday, the creation of new Ether tokens has been severely limited lately. Especially for those of you who are less inclined to look at graphs and charts, feel free to watch the recording here.

For hose of you who do like charts, check this out. This supply shortage while demand remained consistent caused Ethereum’s price to rise dramatically and the rest of the cryptos followed. By today, we’re going on sheer momentum. After months of depressed prices, it’s about time we had a real rally in this market.

As I’m writing, it does seem that we may be getting a continuation of the rally but it’s still too early to tell. Let’s see where the day brings us.

Wishing you an excellent day. As always, please continue sending in your valuable feedbacks, questions, comments, and insights. It is always useful and always appreciated.

Best regards,

Mati Greenspan
Senior Market Analyst

Connect with me on….

eToro: @MatiGreenspan Twitter: @MatiGreenspan LinkedInMatiGreenspan |Facebook:MatiGreen

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...

4.6 stars on average, based on 152 rated postsSenior Market Analyst at Etoro.com.




Feedback or Requests?

Continue Reading

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