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.
Continue reading “Bitcoin Ponzi Scheme Bubble Fueled By Standpoint Research Price Target Hike”
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.
Continue reading “Saturday Show For Week of November 27 2017”
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%.
Continue reading “Earnings Growth Slowing As Interest Rates Rise”
Post Holdings stock has rising large players volume as the stock has pulled back over the last 6 weeks. This consumer staples company is a great seasonal play too.
Traders are front-running a December Federal Reserve rate hike.
Doctor Copper is signaling an improved outlook for the global economy as the price of copper has retaken the key $2.86 level.
China is the world's largest importer of copper using more than three million tonnes a year. In an attempt to improve the environment, China is proposing a copper import ban. China's copper industry is accelerating copper imports to build stocks ahead of the 2018 deadline. You can read more about China's proposed copper ban here.
September copper futures trading on the Comex market in New York moved higher as the likely impact of new regulations in China spark another round of heavy buying in the US and Shanghai. Last Thursday more than 3 billion pounds of copper changed hands and the price jumped to $3.048 a pound ($6,720 per tonne) which is the highest in nearly three years. December copper hit $3.07 a pound. Analysts at DoubleView think copper is in a long overdue bullish cyclical move which predicts the next boom for the global economy is underway.
Price of Copper
Whether its a global economy thing or a China thing or even both, one thing is clear: The price of copper has confirmed the break above the key $2.86 level this month.
Federal Reserve Will Push Price of Copper Back Down
The problem I have with the Doctor Copper is signaling a global bull market thesis is the Federal Reserve. The Federal Reserve is hiking rates and that ALWAYS slows down the economy and thus the demand for copper. I talked about this on the Saturday show back in June here. Please make sure you review my commentary on the Saturday show before going long copper. You may also want to use this stop limit order strategy to trade copper.
As for me, I'm not swing trading copper as its too dangerous and I see safer opportunities with higher yields elsewhere.
If you have any thoughts on Doctor Copper, leave your comment below.