Bitcoin Ponzi Scheme Bubble Fueled By Standpoint Research Price Target Hike

The Bitcoin bubble is second only to the Tulip bubble. The current digital currency bubble is the second biggest bubble in recorded history.

Bitcoin is turning into the mother of all Ponzi Schemes. Below are the criteria that make Bitcoin a Ponzi Scheme:

– It has no intrinsic value. A few merchants might exchange low priced goods for Bitcoins because when the value crashes, they might only be out a pizza, or a gift card. Few if any are exchanging Bitcoins for big ticket items like computers, cars, or houses. The reason is that when Bitcoin crashes, people can handle being out a pizza or a gift card. But no one wants to accept a 30 year house loan paid with Bitcoins to maturity. If Bitcoin crashes and goes worthless, who wants to be out an entire house? Bitcoin’s main value is that someone, somewhere, chased it higher and is therefore a greater fool than someone else who bought lower. The catalyst for Bitcoin is the greater fool whose rational thinking was overcome by greed.
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Saturday Show For Week of November 27 2017

The weekly Saturday night financial show attempts to predict market direction for the week ahead by looking at a variety of technical and fundamental indicators.

Last Monday, Janet Yellen said that she will leave the Federal Reserve after her successor Jerome Powell takes over in February of 2018. This will give President Trump four seats to fill on the Fed’s board of governors.

Yes! Good move by President Trump. There’s no reason to keep Obama appointees in place anywhere within the US government.
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Earnings Growth Slowing As Interest Rates Rise

With Q3 earnings season in the rear-view mirror, we can now say that earnings growth is slowing. Over the last 4 quarters we have growth rates of: 2.1%, 6.5%, 6.5%, and 4.1%.
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Oligopolies and Monopolies

The Trump Administration is following the playbook of Reaganomics. As part of its Reaganomics program, the Reagan Administration cut back sharply on the regulation of everything from monopoly and oligopoly to pollution and product safety, important elements that likewise effect the aggregate supply curve.
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Saturday Market Prediction Show For Week of November 13 2017

Put on your macroeconomics hat and hold on for a wild, brain-stimulating ride as Lance dives into the GDP formula and explains the President’s monumental speech at the Asia Economic Summit in Vietnam last week.

This week’s show features commentary on President Trump’s monumental speech at the Asia Economic Summit in Vietnam last week.

Folks, this speech from the President was bigger than all other stories combined.

I see clearly what the Trump Administration is doing because my economics teacher, Dr. Peter Navarro, was selected by President Trump to be director of the White House National Trade Council.
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Of Course Democrats Want Huge Tax Increases

Of course Democrats want huge tax increases. Tax increases cause expanding deadweight loss and ultimately contract economic growth. Democrats clearly want to crash the economy while President Trump is in office to make sure that he’s a one-term President only.

President Trump pushed out on Twitter today that congressional Democrats “want MASSIVE tax increases & soft, crime producing borders.” The President said that Republicans, instead, advocate “the biggest tax cut in history & the WALL.”
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US Set To Take Tech Jobs Back From EU

The European Union has launched a tax assault against tech giants Amazon, Apple, Facebook, Google, and Qualcomm.

The EU's actions are being supported by Germany and France but opposed of by Ireland.

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Swing Trading With The SPHB:SPLV Chart

The SPHB:SPLV ratio chart is showing a compelling setup for small cap stocks. The SPHB:SPLV ratio chart tracks high volatility (high beta with tendency to be small cap) stocks to low volatility (tendency to be large cap) stocks. This ratio chart is another barometer for the risk on versus risk off trade.

In a risk on market, higher growth and higher beta stocks are the name of the game. Investors go on the offense for maximum profits and their less concerned about the economy and a recession. In a risk off market, investors go on defense and move into safer and more stable (low volatility) large cap stocks.

SPHB:SPLV Ratio Chart

The market has consolidated a little over the last week and that was the swing long signal we were waiting for. Notice that SPHB:SPLV has broken through resistance at 0.8050 and now is pulling back to retest that level. This is a classic set up we can trade. If the 0.8050 level holds, it means previous resistance has become support and we can take a beautiful entry off that level (green arrow). Make sure to review this lesson on trading for beginners so that you know which stocks to screen for to take advantage of a turn in the SPHB:SPLV chart.

Border Adjustment Tax DOA as Retailers and Traders Celebrate Victory

Republicans have officially given up on trying to pass a border adjustment tax to even the playing field with our trading partners. The Retail Industry Leaders Association celebrated the news and said they are now ready to get on-board with the President’s tax reform.
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FOMC Announcement Pushed US Dollar Down Big Time

The dollar did a big drop today after the FOMC announcement left rates unchanged. The Federal Reserve said the reduction of the balance sheet will begin relatively soon. I think relatively soon means September 2017.

The Fed seemed to indicate that “gradual” policy tightening will continue.
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