Up in the Air

Writing to you from the airport again. Looks like my flight was delayed and I’ll have a few hours in the terminal. So the title of today’s update is really where I’d like to be.

For the hundreds of you who responded to yesterday’s update with all of your thoughts and opinions about Nicolas Maduro and the Petro, please refer to the title as well.

Optimism is important in tough situations and this situation is particularly difficult. Will Maduro pocket the $735 Million that he raised in the pre-sale, leaving his people high and dry?

It’s quite possible, perhaps even likely. What I do know is that if used correctly, this open-book technology does have the potential to restore trust and stability to the economy but only if it’s executed correctly.

After much consideration, I personally will not participate in this ICO until see a greater level of transparency. As with most ICOs, the details will likely emerge along the way.

Will be watching closely with hopeful eyes and wishing all the best for the people of Venezuela.

@MatiGreenspan
eToro, Senior Market Analyst

Today’s Highlights

  • The Sell Continues
  • Fed Minutes
  • Going for a Dash

Please note: All data, figures & graphs are valid as of February 21st. All trading carries risk. Only risk capital you can afford to lose.

Traditional Markets

The Dow Jones came back from President’s day with a bad attitude and proceeded to fall 1%, erasing the entire “recovery” from Thursday and Friday.

The selling action was led by Walmart, which dropped a howling 10% after a sour earnings report. This was the stock’s worst day in more than 30 years.

Still, as you’ll notice in the chart below the price is still higher now than it was in mid-November.

The funny thing is, just as with the last big drop, there doesn’t seem to be much correlation with other markets.

Gold dropped and failed to provide a safe haven against the falling stocks and the US Dollar continued its bounce off the bottom.

The Bonds are recovering slightly but Volatility is up.

Everything is up in the air.

Powell’s Etch a Sketch

The markets are focused on the FOMC minutes that will be released later today but this could prove to be a non-event.

A lot has changed since their last meeting, most importantly, their leader. I’m not sure why people are concerned with what Janet Yellen may have been thinking when Powell is now in charge.

The change in regime gives the Fed an excellent chance to change their stance and save face.

The financial markets and top economists expect to see them get tough on inflation and it’s difficult to imagine them delivering anything less. Unless of course, we do see a huge sell off in the markets.

Going for a Dash

For short-term cryptotraders, take a look at Dash. Over the last hour, as I’m writing, it looks like it’s going for a breakaway from the pack.

We’ve seen these type of rallies in this market develop quite quickly in the past. Most recently with Litecoin gaining about 50% on Valentines day.

Of course, all cryptocurrencies have an extremely high risk so trying to catch these waves can be tricky and quite dangerous. A wise investor will always do their best to create a diversified portfolio with all the tools at their disposal.

Wishing you an amazing 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.

 

Author:
Senior Market Analyst at Etoro.com.

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