Connect with us

Market Overview

When it Rains it Pours

Published

on

A myriad of bad news hit the cryptocurrency markets yesterday causing double-digit losses on many of the biggest digital assets and Bitcoin itself dropped significantly below the psychologically important level of $10,000 per coin.

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

Rumors that one of the largest crypto-exchange sites in the world was hacked caused panic and confusion across social networks for several hours. But it soon became clear that the reports were in fact exaggerated and what actually happened was that there was a malicious trading bot using their API. All was fixed and back to normal before most people even knew what was happening.

At the same time, there were reports of a bear whale in the market. The trustee in the bankruptcy case against Mt. Gox exchange reported that he’d sold $400 Million worth of coins over the last 5 months.

Perhaps the most significant of the simultaneous news updates was an announcement from the SEC in the USA. The Securities and Exchange Commission has passed a ruling that crypto-exchanges to in fact qualify as “exchanges” and that they need to be registered as such, especially if they offer tokens that are classified as Securities.

// -- Become a yearly Platinum Member and save 69 USD. Click here to change your current membership -- //

Though Bitcoin is not usually seen as a Securities token, many of the other top cryptos may end up being classified as such.

The rapid succession and timing of all three above events was a lot to take in for this young market. As the top cryptotrader on eToro wrote in a post “when it rains it pours.”

But the clouds are clearing now and we seem to have found some support. Still, it’s good to see a spike in volume to get things moving again.

@MatiGreenspan
eToro, Senior Market Analyst

Today’s Highlights

  • Tariff Week Continues
  • New CopyFund for You
  • Europe’s Central Bank

Please note: All data, figures & graphs are valid as of March 8th. All trading carries risk. Only risk capital you can afford to lose.

Traditional Markets

A particularly stormy day on Wall Street yesterday. Yet, somehow even with the resignation of Gary Cohn still on the top of the news cycle, and fresh news that Trump will almost definitely go ahead with the steel and aluminum tariffs, the global stock markets managed a meager recovery.

Though the Dow was down by a third of a percent, the S&P500 managed a flat close and the Nasdaq even gained a third if a percent.

What we’re increasingly seeing in the market and displayed by the above charts is that people are getting very selective about the stocks that they’re picking.

On that note, eToro has just launched a brand new CopyFund that is designed to outperform the rest of the markets using the power of big data collected by our platform and using machine learning to refine our algorithms.

You can see the new Copyfund @OutSmartNSDQ and so far, it’s done exactly that. From the time we started testing it in live, it has almost doubled the performance of the benchmark index.

This is because, rather than just weighing the index by the market cap of the shares within, we weight it based on our users who are trading the individual stocks to get a better picture of the sentiment.

The Big Bank Announcement

Early this afternoon (13:30 GMT), the global markets will be focused on a big press conference from the European Central Bank.

The ECB has been holding their cards very close to their chest lately as they try to tighten their monetary policy without sending the Euro through the roof.

The economy is looking much better than when they started printing billions of Euros each month and many feel that it’s time to end the easing. However, the less they print, the more the market sends the Euro higher.

Adding to the difficulties is the possibility of a global trade war. So it will be interesting to see how ECB governor Mario Draghi reacts to that, if at all.

Here we can see the EURUSD strengthening since the beginning of last year. Those yellow lines at the top are known by technical analysts to be a “bullish flag pattern.”

I’d like to wish a very happy Women’s Day to all our female readers. Wishing you the best of success in everything you do.

Note: I’m hoping to have a trip to Germany in the second week of April to meet some clients. Let me know if you’d like to meet up there during that time and I’ll do my best to see you too.

As always, please let me know if you have any questions on anything above or if you need any further assistance with your portfolio.

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 | 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.

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.
6 votes, average: 5.00 out of 56 votes, average: 5.00 out of 56 votes, average: 5.00 out of 56 votes, average: 5.00 out of 56 votes, average: 5.00 out of 5 (6 votes, average: 5.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.6 stars on average, based on 87 rated postsSenior Market Analyst at Etoro.com.




Feedback or Requests?

1 Comment

1 Comment

  1. Tarik

    March 9, 2018 at 12:46 pm

    so now we know that binance was attacked in a really creative way, but the hack itself got minimized to a fraction of its potential damage, kudos to quick reaction of Binance team… and eventually no remaining damages… well, the hackers had loses because binance blocked their funds (lol)

You must be logged in to post a comment Login

Leave a Reply

Market Overview

Market Update: Stocks Recover from U.S.-China Trade Doubts Lingering as Crypto Assets Plunge

Published

on

U.S. stocks reversed losses Wednesday after the minutes of the Federal Reserve’s latest meeting showed no urgency from policymakers to raise interest rates.

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

Stocks Recover

Wall Street spent much of Wednesday in the red as lingering trade risks dampened investor sentiment. The major indexes reversed course in afternoon trading, the S&P 500 Index advancing 0.3% to 2,733.28. Six of 11 primary sectors finished higher.

The Dow Jones Industrial Average reversed declines to finish up 0.2% at 24,886.74. Dow industrials were down triple digits earlier in the day.

// -- Become a yearly Platinum Member and save 69 USD. Click here to change your current membership -- //

The technology-focused Nasdaq Composite Index swung into positive territory, adding 062% to close at 7,425.96.

Equity markets got some reprieve after FOMC meeting minutes showed the central bank was in no hurry to hike interest rates even as the economy and inflation continued to improve. Nevertheless, the Fed is widely expected to raise interest rates by a quarter point at its next meeting in June.

Trade Tensions on Multiple Fronts

President Trump’s pledge to help telecom giant ZTE get back to work has been challenged by the Senate Banking Committee, which on Tuesday approved a host of measures targeting exports and Chinese companies.

Senate lawmakers have agreed on new rules to bolster national security reviews of Chinese technology firms as well as strengthen export controls. This includes limiting the Trump administration’s ability to lift penalties imposed on ZTE.

Stocks rallied Monday on signs the Trump administration would suspend its plans to tax $150 billion worth of Chinese imports.

Reports of a stalemate over NAFTA also sent jitters throughout Wall Street as it became apparent that the U.S., Canada and Mexico would not reach an agreement in time for the Mexican elections this summer.

In a statement released last week, Trump’s top trade negotiator Robert Lighthizer said “NAFTA countries are nowhere near close to a deal,” pointing to “gaping differences” on a number of key issues.

Crypto Markets Plunge

Cryptocurrency prices declined sharply on Wednesday, with bitcoin threatening a bearish reversal following weeks of lateral moves.

The cryptocurrency market shed more than $50 billion, reaching a low of around $324 billion. That was the weakest reading since early April.

Bitcoin values fell more than 6% to $7,620, its lowest since April 12. Total trade volume in BTC was valued $6.1 billion, which is equivalent to roughly 31% of total daily turnover.

Although bitcoin declined heavily, its share of the total market improved to 39.5% as altcoins registered significant losses. With the exception of bitcoin, every major asset in the top ten recorded double-digit percentage losses. Declines ranged between 11% and 20%.

Ethereum prices plunged to $591, Ripple XRP declined to $0.61 and bitcoin cash touched down below $1,000 before recovering at $1,033..

There was no immediate catalyst for the price decline, which suggests that a broad consolidation trend is afoot. Some researchers have called for the general unwind to continue through the summer before accumulation returns in the fall.

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 410 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

Market Overview

Satisfaction & Exploitation

Published

on

Hi Everybody,

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

In the dark hours of the night, the cryptocurrency known as Verge fell victim to another major hack. Shortly after Verge had been assessed by the People’s Bank of China as being on the same level as Bitcoin.

This incident is a perfect example of how even the most gorgeous looking piece of tech can be vulnerable if its assets are underutilized. In other words, the network effect is only useful if the network is popular. If the audience is simply not attracted the network itself becomes vulnerable.

The user that reported the whole affair, apparently the same person who reported it last time Verge was hacked, submitted this image to show what the hacker had done.

// -- Become a yearly Platinum Member and save 69 USD. Click here to change your current membership -- //

Now, I don’t understand any of this code, but what happened here is quite clear. Basically, this guy just had his way with a network by exploiting the fact that it was going unused and now the evidence is everywhere.

@MatiGreenspan
eToro, Senior Market Analyst

Today’s Highlights

  • Unsatisfied President
  • Evasive Founder
  • Some Dry Crypto Updates

Please note: All data, figures & graphs are valid as of May 23rd. All trading carries risk. Only risk capital you can afford to lose.

Traditional Markets

The whole “trade war is on hold” narrative didn’t seem to last very long at all. Yesterday, President Donald Trump expressed that he is not satisfied with the way things are going there, indicating that this whole saga is far from over.

In addition, Trump cast further doubt that the planned meeting with Kim Jong Un in Singapore June 12th will go forward.

Stocks didn’t like these updates one bit and major indices around the world are in deep red.

What seems to me, the more defiant Trump gets the stronger the Dollar gets. The US Dollar is gaining against most of the major currencies in what we can see as a clear flight to safety in the FX market.

That big 1% green spike in the Japanese Yen is not normal and is a clear indication that Asian investors are searching for a safe haven.

This evening at 19:00 GMT, we’ll receive the minutes from the Fed’s last meeting and crude oil inventories coming out at 15:30 are forecasted to show 2.5 million fewer barrels of oil in the United States.

In Your Facebook

Mark Zuckerberg’s trip to Europe most likely didn’t go as well as he’d hoped. Whether you heard Laurel or Yanni, you can probably tell that the Facebook Founder was dodging questions left and right.

EU lawmakers asked him some very pointed questions but the answers they received were incredibly vague. We can likely expect that privacy-centric Europe will not sit on their hands with this one as the Yanks have done.

If investors are worried, it didn’t show up at all in the stocks price. As we can see, FB stock has already made a full recovery since the Cambridge Analytica revelations and is now holding near all-time highs.

Dry Crypto

It’s hard to be happy when everything is in the red like this but we can probably be comforted by the fact that we’re still off the lows.

As a reminder, here’s the bitcoin chart we’ve been watching. As you can see we’re still a few hundred dollars above the main support level circa $7,100.

Two positive things that happened recently in this space are worth mentioning.

First, the CFTC has gone one step further into their support of cryptocurrencies by releasing an Advisory for exchanges to list cryptocurrency derivatives. In their own words….

The second update is not as clear-cut but could have much larger implications. This article was forwarded to me by a dear friend in India this morning.

As we know, India’s central bank, the RBI, has released a circular ostensibly banning banks from dealing with crypto-affiliated businesses, something that has been choking the market in a key region.

The linked article explains that the Indian government may now be considering to release a full tax regiment for bitcoin and other digital assets, which would tax crypto-transactions as if they are considered actual property.

Now, the key source for the article is still anonymous so we would need to rely on Bloomberg Quint’s assessment of if he/she can be considered a reliable witness or not, but if the government does implement such measures it could be an indication that they feel the RBI’s ban will not last much longer. Otherwise, why waste your time collecting taxes on something that’s not transactable?

For me, I can’t help but get goosebumps every time I think about the possibility of the Bitcoin “digital gold” network being opened up to a country of 1.35 billion people, who are in dire need of a reliable payment network.

Let’s have an awesome 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.

Best regards,
Mati Greenspan
Senior Market Analyst

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.

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.
4 votes, average: 3.50 out of 54 votes, average: 3.50 out of 54 votes, average: 3.50 out of 54 votes, average: 3.50 out of 54 votes, average: 3.50 out of 5 (4 votes, average: 3.50 out of 5)
You need to be a registered member to rate this.
Loading...

4.6 stars on average, based on 87 rated postsSenior Market Analyst at Etoro.com.




Feedback or Requests?

Continue Reading

Analysis

Pre-Market: Turkish Lira Spooks Markets, as Dollar Still in Focus

Published

on

Stock markets are broadly lower today, as yesterday’s risk-off shift continues to dominate trading, with the Turkish currency woes, the Italian political standoff, and the weaker than expected European PMIs providing ample ammunition to bears.

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

S&P 500 Futures, 4-Hour Chart Analysis

While the post-crash period since early February had its ups-and-downs, the best way to describe it is still a simple consolidation. In the US, trading has been taking place mostly in the range of only two sessions in early February, and the S&P 500 is still stuck in the middle of that range.

// -- Become a yearly Platinum Member and save 69 USD. Click here to change your current membership -- //

Forex markets are in turmoil, as Dollar-centered trading continues across the board, and the hunting season for vulnerable emerging market currencies is still on. The recent strength in the reserve currency together with the rising yields sparked an exodus from more risky assets across the globe and with the Euro hitting another 6-month low today, the pressure will likely persist. Investors await tonight’s Fed meeting minutes which could make a huge impact on the Dollar and equities, especially if the central bank cools down rate hike expectations after the strong Dollar rally.

EUR/USD, 4-Hour Chart Analysis

First, it was Argentina, now it’s Turkey that’s in the center of attention, as the country plagued by a huge private Dollar debt load end rampant inflation is highly sensitive to rising rates and a weaker currency.

USD/TRY (Turkish Lira), Daily Chart Analysis

More experienced investors could have a strong feeling of déjà vu, as the Turkish leadership is blaming a concentrated attack against the country, while the market is waiting for the inevitable central bank intervention in the form of an emergency rate hike. For now, there is still hope that the storm will pass, but should an outright currency crisis break-out, rate hikes won’t be enough, and even capital controls will only provide a temporary solution, and a hard landing for the economy will be almost guaranteed.

Europe Also Down as Oil Pulls Back

DAX Index, 4-Hour Chart Analysis

European stocks which have been lifted by the falling Euro in recent weeks fell to two-week lows today, after the bearish PMI releases and the lower than expected British inflation figures. While the string of negative economic surprises continued, emerging market woes were largely ignored by investors so far, and the rising short-term trends are still mostly intact throughout the Old Continent.

Commodities are lower mixed amid the large currency moves, as the Dollar’s strength weighs on the whole asset class. Gold is still stuck below $1300 despite its recent resilience, while Oil is trading just off its highs, even as the OPEC is reportedly contemplating a supply increase following the “normalization” of oil prices. The cartel which, led by Saudi Arabia has openly been seeking higher prices

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.
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 255 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

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