Bitcoin: The Appetite for the Unknown

Lior Alkalay - INO.com Contributor


Over the past month, Bitcoin has become almost synonymous with the word bubble. In fact, Google searches for the combination words “Bitcoin” and “bubble” has jumped exponentially. That is unsurprising considering Bitcoin’s phenomenal ascent—piercing through record after record.

Even as calls and forecasts for Bitcoin’s eventual collapse intensify, the enthusiasm has intensified, as well. The cryptocurrency is now available for trading on the Chicago Mercantile Exchange floor, making its way forward as a form of legal tender. It’s also unsurprising, then, that in another Google search, the word combo of “buy” and “Bitcoin” is also at a record high.
So, how can we gauge Bitcoin? We cannot! And that is what I call the Unknown Factor.

Bitcoin Google Search Data
Chart courtesy of Google Trends

Bitcoin is No Tulip

Some prominent figures including Jaime Dimon CEO of JPMorgan Chase & Co and John C. Bogle-founder of Vanguard Group. have labeled Bitcoin as a bubble, even the world's most famous investor Warren Buffet has been a skeptic on Bitcoin labeling digital currencies a “mirage.” In fact, most of all, the latest Bitcoin surge is compared to the Tulip Mania that took place way back in the 17th century in the Dutch Republic. Back then, Investors got caught up in a frenzy of tulips and began speculating on their price. A bubble was inflated, and eventually, like every inflated bubble, in 1637 the tulip bubble burst, leaving investors “wounded” and with “hefty losses.” The difference between then and now is that a tulip is, for lack of a better description, a “useless asset.” As a commodity, the tulip, albeit pretty, is nothing more than a decaying flower with no real use or applications in food or industry. Unlike a commodity such as gold or silver, a tulip cannot be used for jewelry.
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Gold & Silver: Silver Hits Support As Gold Cracks Consolidation

Aibek Burabayev - INO.com Contributor - Metals


The recent collapse of the top precious metals shouldn't be a surprise if you read my previous Gold & Silver update in November, where I called for the upcoming “storm” after the “calm.” In this post, I’ll share with you the updated charts of both metals.

I changed the order of the charts, and this time I would start with silver as it reached the first decision point ahead of gold.

Chart 1. Silver Daily: First Target Reached

Daily Silver Chart (XAGUSDO)
Chart courtesy of tradingview.com

Silver has a strong bearish structure as the red long-term trendline keeps the pressure on silver. The second leg of consolidation within the black parallel channel lacked power as the price couldn’t reach even the top of the first leg established in October at the $17.47 per oz. It stalled at the $17.39 per oz. and then collapsed for more than a half of a dollar to check the consolidation support. Continue reading "Gold & Silver: Silver Hits Support As Gold Cracks Consolidation"

Weekly Futures Recap With Mike Seery

We've asked Michael Seery of SEERYFUTURES.COM to give our INO readers a weekly recap of the Futures market. He has been Senior Analyst for close to 15 years and has extensive knowledge of all of the commodity and option markets.

Michael frequently appears on multiple business networks including Bloomberg news, Fox Business, CNBC Worldwide, CNN Business, and Bloomberg TV. He is also a guest on First Business, which is a national and internationally syndicated business show.

Crude Oil Futures

Crude oil futures in the January contract settled last Friday in New York at 58.36 a barrel while currently trading at 57.27 down about $1 for the week. I was recommending a bullish position from around the 53.15 level getting stopped out earlier in the week around 56.20 as prices hit a two week low as that is my exit strategy if I have a bullish position. Crude oil prices are still trading right at their 20-day but above their 100-day moving average as the trend is mixed to higher in my opinion as heating oil and unleaded gas are both ending the week sharply higher as strong demand continues to push prices near contract highs. The commodity markets, in general, this week saw some significant selling to the downside including crude oil over the last couple of days, and I think a lot of this is just year-end selling as my only trade recommendation at the current time is a bullish position in cotton as many trends are mixed. However, I do believe when we enter 2018 bullish trends across the board will come back as the U.S. economy certainly is improving. Volatility in crude oil has started to accelerate which is not surprising in my opinion, and I think volatility in all of the commodities is going to expand significantly next year as that has been the problem in 2017. We experienced have low volatility across the board including the stock market despite the fact that we are at all-time highs so sit on the sidelines & let's wait for another trend & the risk/reward to become in your favor once again as I still think higher prices are ahead.
TREND: MIXED - HIGHER
CHART STRUCTURE: SOLID
VOLATILITY:INCREASING

Continue reading "Weekly Futures Recap With Mike Seery"

Hasbro - Major Tailwinds Ahead

Noah Kiedrowski - INO.com Contributor - Biotech


Introduction

It’s been an eventful couple of months for Hasbro Inc. (NASDAQ:HAS), the third largest toy maker in the world with Toys R Us filing for chapter 11 bankruptcy and a rumored acquisition of rival toymaker Mattel Inc. (NASDAQ:MAT) all while the stock has been trading erratically in the backdrop with 10% swings in the stock price. As a result of the Toys R Us bankruptcy filing, Hasbro had to lower its guidance through the holiday season, and as a result, shares initially tumbled 9% on the news. Recently, Hasbro had witnessed a huge sell-off from its 52-week high of $116 to $88 or a 24% slide after reporting its most recent quarterly results with lowered guidance due to the Toys R Us bankruptcy filing. Hasbro develops toys for many of the multi-billion dollar movie franchises such as Marvel Universe, Star Wars, Disney Princesses, Frozen, Transformers and Jurassic World. Hasbro has many catalysts in the near term with major movie franchises coming into the fray with upcoming Disney releases: Thor: Ragnarok and Star Wars: The Last Jedi to round out 2017. It's noteworthy to point out that Thor: Ragnarok has topped $675 million thus far at the international box office and closing in on the $750 million mark in theatrical release rising to the 10th highest grossing movie in 2017. In 2018, Black Panther, Avengers: Infinity War, Star Wars Han Solo spinoff and Ant-Man and The Wasp to highlight a few major movies. Taking into account Hasbro’s growth, the potential acquisition of Mattel, Q4 2017-Q2 2018 catalysts, trading at a P/E of ~20, boasting a 2.4% yield and initiatives within Hasbro Studios to propel growth further presents a compelling buy after this recent sell-off below $100 per share. Continue reading "Hasbro - Major Tailwinds Ahead"

Jobs Report Boost Stocks

Hello traders everywhere. A better-than-expected jobs report has given life to a rather dull week for stocks. The U.S. economy added 228,000 jobs last month, according to the Bureau of Labor Statistics. Economists polled by Reuters expected a gain of 200,000. The unemployment rate held steady at 4.1%.

Average hourly earnings, a closely watched component of the report, rose 0.2% for November and 2.5% for the year. Economists expected a monthly increase of 0.3% or 2.7% for the year.

The Federal Reserve is scheduled to meet next week, and with the strong jobs numbers and a growing U.S. economy expect the Fed to stay on track and announce an interest rate hike on Wednesday.

MarketClub's Mid-day Market Report

The other big news today is Bitcoin, which will begin futures trading on the CBOE Sunday, Dec. 10th. At 5 pm EST using the symbol (XBT). Bitcoin has had a strong week heading into futures trading with a gain of 45% on the week, before a sell-off of 13% today, but it has backed off the lows of the session to only be down 5% this afternoon. Continue reading "Jobs Report Boost Stocks"