Stocks Try To Bounce Back

Hello traders everywhere. Stocks are looking to bounce back a week after they suffered a bit of a pullback that resulted in weekly losses for the S&P 500 -1.2%, DOW -.65% and NASDAQ -1.1%. The losses came on the heels of a record-setting week, so it's expected that there was room for a pullback.

What was a positive morning for the stock market with better-than-expected earnings from companies ranging from Coca-Cola (KO) to United Technologies (UTX) has turned mixed as we head into afternoon trading. Will the market post a positive weekly gain this week?

The U.S. Dollar issued a new green weekly Trade Triangle at $97.58, indicating that we could see a long-term uptrend take shape. This came after news of a congressional deal to extend the U.S. debt limit for two years, easing fears of a government default.

Key Levels To Watch This Week:

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Libra - Facebook's Cryptocurrency Implications

Facebook Inc. (FB) is making a bold move that stands to have vast implications across its business model and its user base via launching its cryptocurrency called Libra. Cryptocurrencies are still in a nascent stage in terms of adoption, acceptance, application, and full understanding of these virtual coins. The cryptocurrency market thus far has been speculative, volatile, and met with skepticism from users and governments alike. Despite the tumultuous albeit short history of cryptocurrencies, these alternative forms of currency have vast implications. These implications include potential disruption of central banks, destabilizing government-backed currencies, reshaping the financial transactions space (i.e., banks and credit cards) while displacing central database infrastructures via blockchain (i.e., banks, clearinghouses, credit card networks). Facebook’s Libra stands to address the unbanked (those without traditional bank accounts) segment of its user base in a major way. The President and Jerome Powell, along with many others in government have either voiced concerns or publically made clear that they’re not embracing this move by Facebook. Government officials are concerned about appropriate regulatory framework being in place considering the company’s past privacy scandals. Nonetheless, will this cryptocurrency bode well for Facebook moving forward?

What is Libra?

Libra will be dissimilar from Bitcoin in its underpinning blockchain technology and mining. Libra will not run on a decentralized disturbed blockchain ledger, and no mining of any additional coins will occur. The blockchain is permissioned and will be managed by the Libra Association, which is a membership organization that consists of 27 payment, technology, telecommunication, online marketplace, venture capital, and non-profits. Libra is planned to be launched sometime next year 2020. Libra will allegedly be backed by financial assets such as a basket of currencies and US Treasuries to circumvent volatility. Unlike Bitcoin, which isn’t backed by anything and can highly volatile, Libra’s value should be anchored and less variable. Each member of the Libra Association will add $10 million, so the cryptocurrency has full asset backing. The supply of Libra will expand and contract based on demand; if demand is high, then the association will purchase more of the underlying assets and create new Libra. If users want to cash out of the cryptocurrency, the association will pay them and destroy the equivalent amount of Libra. Continue reading "Libra - Facebook's Cryptocurrency Implications"

Weekly Futures Recap With Mike Seery

Gold Futures

Gold futures in the August contract is currently trading higher by $12 at 1,440 an ounce after settling last Friday in New York at 1,412 up about $28 hitting a new 6 year high as this market looks to test the 1,500 level in the coming weeks ahead in my opinion.

I'm not involved in gold, but I have bullish positions across the board in the precious metals as I still think gold prices continue to March higher and if you are long a futures contract place the stop loss under the 2 week low which stands at 1,384 as an exit strategy.

Gold prices are trading far above their 20 and 100-day moving average as this trend is strong to the upside as silver prices are up over $0.40 today and still looks very cheap compared to gold prices.

Volatility in gold has accelerated as that is here to stay in my opinion as I think strong demand will continue to support gold and the precious metals across-the-board as U.S. interest rates remain at extremely low levels which is bullish towards the commodity markets.

When you trade the commodity markets finding the trend is the most important aspect as the precious metals have now developed into strong trends as you should have bullish positions, not bearish positions as that would be counter-trend trading.

TREND: HIGHER
CHART STRUCTURE: IMPROVING
VOLATILITY: HIGH

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Precious Metals Big Picture

While many are talking about major new bull markets in gold, silver and the miners I find it safer to set realistic goals within a still very bullish outlook. After all, we became bullish in November, had to retrench due to over-bullish sentiment and fading fundamentals in February (both situations linked here) and then have been back in the bull seat since the gold stock launch as noted on June 3rd.

The point being, I have nothing to prove to you; nothing to woo you and tempt your greed impulse about. NFTRH has simply called the sector in line with its fundamentals and technicals, and that is what we continue to do as of this day. We chart 20 quality miners (+/-) each week and note short-term targets, resistance, etc. for the miners, gold and silver routinely.

The other priority is to stay on top of the still-bullish fundamentals. Most recently silver joined the party and is probably slamming our favored theme into gear, which is for it to take over leadership from gold and potentially lead the macro to a future inflationary cycle. Easy now, that is still in the realm of potential, not yet reality. But all of this fun – and it has obviously been fun lately – takes place against a big picture that is lumbering along at its own pace.

What I like best is that due to the big picture view I can put forth a conservative 2019 plan, and it still calls for a minimum of another 70% upside for the HUI index. Within that, many of the miners we track will do much better. And within that, we have not even seen the speculative end wake up yet. Those would be the little TSX-V type penny stock bottle rockets (lottery tickets) that pull 400% rallies out of nowhere when they finally get played.

Okay, let’s reel it into the lumbering big pictures on HUI, gold, and silver. As noted, there will be bumps and pullbacks along the way. Monthly charts are not preferred for managing those situations so we’ll stick with the dailies and weeklies in NFTRH reports. But with the ferocity of the current rally (and the fundamentals behind it) it appears a good bet that a second leg to the impulsive ‘A’ leg in 2016 is underway after the beautiful consolidation that killed everyone’s spirits (as it should) since 2016. Continue reading "Precious Metals Big Picture"

Former Canopy CEO Loves This Stock

CEOs have an insider’s view that is second to none. When they talk, it pays to listen closely. They drop clues that can be used to find great investments. That’s what happened last week with a rock star CEO in the cannabis industry.

Bruce Linton founded Canopy Growth Corp (CGC, WEED) in 2013. Back then, Canopy was only worth $100 million – but in the next six years, Linton grew Canopy into a $15 billion global juggernaut and the largest cannabis company in the world. That’s one of the fastest growth rates in the history of the stock market. It made early investors rich and Linton was widely considered the Pied Piper of the global cannabis industry.

If the cannabis industry had a rock star CEO – it was Bruce Linton. His insight and connections in the cannabis industry are unparalleled. That’s why it came as such a big surprise last week when Constellation Brands (STZ), which owns 38% of Canopy, fired Linton. After the news hit the wire, Linton quickly called into CNBC and dropped a hot investment tip about one of his favorite cannabis companies that cannabis investors need to know about.

Kevin O’Leary, the billionaire investor famous for his role on NBC’s Shark Tank, asked Linton if there were any cannabis companies he would consider investing in. Here’s what Linton said. Continue reading "Former Canopy CEO Loves This Stock"