Hello fellow traders, in this blog post, we will discuss the most hyped cryptocurrency Bitcoin in a technical as well as psychological perspective. From the zero line, we are calling bitcoin completed in the super cycle blue wave (a) at 17/12/17 top. From that high, the market completed the first leg of 3 of a double correction. You can see the scenarios in the picture below (blue and black). For now, it needs to be seen which path bitcoin takes. The recent drop in bitcoin is for us nothing surprising. The market just pulled back 50% from 09/15/17 low. However, the drop was too short in time. Anyway, our forecast is still for more upside, n...
In surveying this year for dramatic alpha-related stories, we have much from which to choose. This was the year in which the Murdoch family announced its intention to sell some of their highest value holdings to Disney. Also, in 2017 the EQT Rice merger (contested, unsuccessfully, by one prominent hedge fund and challenged, but in time accepted, by another) overcame opposition and may end up redefining the natural gas market. In a very different but equally convoluted affair: Dana Gas shook up the whole world of Shariah finance by claiming, as a restructuring ploy, that its bonds were no longer in compliance with the rules of such finance. Me...
The history of money can be traced back to barter where goods were swapped for other goods or labor. As societies became more sophisticated and better ordered, “value” was transferred from things to tokens (coins and eventually banknotes) which were more convenient than carrying a dozen chickens with you wherever you went. The coins were made of silver and gold, originally, and therefore held intrinsic worth. Until the Nixon shock of the 1970s, it was still possible to take a bank note to a central bank and demand for its value to be redeemed in gold (this was the reason why the Nixon shock happened – the value of gold metal vastly outs...
Malaysia, a Southeast Asian country which occupies parts of the Malay Peninsula and the island of Borneo is well-known for its iconic Petronas Twin Tower, beaches, rainforests and mix of Malay, Chinese, Indian and European cultural influences, just to name a few. Besides that, Malaysia is well-endowed with natural resources such as petroleum, rubber, palm oil, domestic plantations and ore. Throughout the introduction of the New Economic Policy (1971-90), followed by the National Development Policy (1991-2000), the Malaysian government successfully produced a report card with GDP growth rate of between 4 – 6% annually excluding the 2000 dotc...
Just a little over three months ago, the BIS (the central bank for central banks), released a fairly detailed discussion of cryptocurrencies that sought to answer the following question: What are CBCCs? “CBCC” stands for central bank cryptocurrencies and as we and plenty of other folks have variously suggested, it’s just a matter of time before the world’s monetary authorities launch their own digital currencies. Of course the mere mention of this possibility is enough to send the crypto crowd into conniption fits. But the bottom line is that if you assume people are transacting for legitimate reasons, well then it’s not entirely c...
Although small cap stocks have performed reasonably well in 2017, their average return has been lower than that of the large cap stocks in this year (see my article about large cap stock performance). The Russell 2000 index which represents about 2,000 small cap companies is considered a benchmark for small cap companies which are traded in the U.S. stock markets. The Russell 2000 index has appreciated 13.14% in 2017, besides about 1.33% in dividend yield. That compared to price appreciation of 19.34% and a dividend yield of 1.73% for the Russell 1000 index which represents approximately 1,000 of the largest companies in the U.S. stock market...
Alerian’s page showing annual distribution growth for the Alerian MLP Index (AMZ) contains their most popular chart (it’s the 4th one down under “Figures and Tables”). It’s no wonder – the steadily growing distributions it portrays should be enough to calm any income seeking, excitement-averse investor. Since it’s their most viewed page, many investors must have drawn comfort from the reliability it presents. The turmoil endured by MLP investors since 2014 appears incongruous when such steady growth in payouts is considered. Oddly, investors who hold securities linked to the index (such as the JPMorgan Alerian MLP Index ETN: A...
January is not a good month for the stock market overall. The S&P 500 is usually flat to lower during the month. BUT, there are individual stocks that excel in January, rising at least 70% of the time and producing as much as 17% gains during the month. Seasonality is the study of how assets perform at certain times of the year. The stocks below show a strong tendency to rise in January, historically. That doesn’t mean they will rally this January, though. Seasonality is best used in conjunction with other forms of analysis and specific trading strategies, such as the ones discussed in the Stock Market Swing Trading Video Course. ...