Futures Market for Bitcoin Gives the Currency Staying Power, But May Hurt Price

Matt Thalman - INO.com Contributor - ETFs


Futures contracts in the crypto-currency Bitcoin (CME:BRTI) are expected to begin trading on the CBOE on Dec. 10, after getting the green light last week from regulators. That gives the CBOE a week of exclusivity. The exchange operator's larger Chicago rival the CME has said its contracts will begin trading Dec. 18.

When the futures are offered, more investors will be given access to the crypto-currency. Institutional investors for one will now be able to build a position in Bitcoin through the use of futures trading.

Furthermore, retail and small investors will have a much easier time gaining access to the fast-growing asset class through the use of futures, but certainly, if Bitcoin Exchange Traded Funds, which would use the futures, are approved. Instead of having to go through lesser-known crypto-currency exchanges and using credit cards to make purchases of Bitcoins, investors will simply be able to use their brokerage accounts and buy and sell futures contracts through the well respected and trustworthy CME.

More so, many believe that once the CME is offering Bitcoin futures, Exchange Traded Funds will be permitted to offer Bitcoin investments through the use of futures. Continue reading "Futures Market for Bitcoin Gives the Currency Staying Power, But May Hurt Price"

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Bank Stocks Lead The Way

Hello traders everywhere. Traders have apparently decided that an old standby is where they want to invest vs. the hottest sector of 2017. That old standby, the big banks.

I opened MarketClub's Top Stocks list this morning after the DOW and S&P 500 opened significantly higher to find that Bank of America (NYSE:BAC) was sitting at the top. In fact, three of the top 5 were big banks. It's a far cry from the tech sector that has been all the rage until recently.

MarketClub's Mid-day Market Report

This change in sentiment is primarily due to tax reform. On Saturday the Senate approved their version of the tax bill in a narrow 51-49 vote after a lot of work on the hill. Once the Senate and House of Representatives reconcile their respective versions of the legislation, the resulting bill could cut corporate tax rates to 20% from 35%.

The GOP, however, still needs to overcome future obstacles for the Senate and the House to craft a joint bill, which will then be presented to President Donald Trump. Republicans hope a deal will be achieved by Christmas.

Key levels to watch next week: Continue reading "Bank Stocks Lead The Way"

Disney's Pivot - Future Autonomy and Growth

Noah Kiedrowski - INO.com Contributor - Biotech


Introduction

The Walt Disney Company (NYSE:DIS) just reported its full-year FY2017 numbers with its Q4 numbers falling short of analysts’ estimates, missing on both EPS and revenue coming in at $1.07 (missing by $0.08) and $12.78 billion (missing by $560 million), respectively. On an annual basis, EPS marginally decreased to $5.69 for FY2017 from $5.72 for FY2016. All financial metrics insignificantly decreased year-over-year with a slight increase in free cash flow. All operating segments insignificantly decreased year-over-year as well. However, Parks and Resorts were a bright spot for FY2017. Now with FY2017 in the books, FY2018 is off to a great start with strongholds in streaming (Hulu, BAMTech, Sling offerings), future inroads into other streaming initiatives with a Disney branded service to directly compete with Netflix (NFLX) and an ESPN streaming offering slated for release in 2018 and finally a record-breaking movie release with Thor: Ragnarok already surpassing $212 million domestically and $650 million worldwide on its way to possibly breaking the prestigious 1 billion dollar mark only after two weeks in release. I feel too much of an emphasis is being placed on ESPN as it weighs less on overall profits. Disney is evolving to address the deteriorating Media Networks business segment with initiatives put forth previously and doubling down during its recent conference call. Investors appear to be looking past this ESPN issue finally as seen in the price action of Disney stock after releasing a lukewarm earnings announcement. Disney has one of its biggest movie slates for FY2018 and a potential acquisition of 21st Century Fox’s assets to further drive growth. Disney offers a compelling long-term investment opportunity considering the growth, pipeline, Media Networks remediation plan, diversity of its portfolio, share repurchase program and dividend growth.

Disney’s New Growth Pivot - Streaming

ESPN remained at the forefront of investors’ minds, serving as the root cause of this streaming initiative as profits and revenue from the Media Networks division have stalled out over the past few years. Simply put, Disney is going all-in on a Disney branded streaming service come 2019. As investors digest the earnings report and fixate on the eroding Media Networks division, I think Disney is offering a long-term buying opportunity near ~$100 per share. This has been seen by the price movement in Disney stock post-earnings which saw a ~3% move to the upside despite the disappointing earnings announcement. Although ESPN makes up a disproportionate amount of the company’s revenue and income, all of its other franchises are posting robust growth hence Disney will be relying less on its ESPN franchise over the coming years. Disney’s perpetual stock slump and the roller coaster ride over the last two years has almost entirely been attributable to the decrease in ESPN subscribers and subsequent revenue slowdown at its Media Networks division. Continue reading "Disney's Pivot - Future Autonomy and Growth"

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 58.95 a barrel while currently at 57.81 down about $1 for the week unable to crack the critical $60 level at this time. I have been recommending a bullish position from the 53.15 level & if you took that trade place the stop loss come Monday at 55.75 as it will also improve on a daily basis, therefore, lowering the monetary risk as volatility remains relatively low despite the fact that prices are right at a two year high. Oil prices are trading above their 20 and 100-day moving average as the trend remains higher, but for the bullish momentum to continue, we have to break through the November 24th high of 59.05 as demand continues to support prices here in the short term. Couple that with the fact that the U.S. stock market hit another all-time high this week telling you that economies worldwide and in the United States are improving, therefore, increasing demand for oil in the short term. At the current time, crude oil is my only recommendation out of the energy sector, and I'm also keeping a close eye on natural gas which is experiencing high volatility presently. I'm looking for a possible bottom developing in that market soon.
TREND: HIGHER
CHART STRUCTURE: SOLID - IMPROVING
VOLATILITY: LOW

Continue reading "Weekly Futures Recap With Mike Seery"