Bitcoin Fell 35% in March

Posted on by Matt Thalman

Matt Thalman - INO.com Contributor - ETFs - Bitcoins Price


During March, the price of Bitcoin fell just about 35%. It started the month at $10,805 and ended just below $7,000. Bitcoin’s decline in March has been massive, but what I find even more interesting is this decline has been somewhat slow and steady. In the past when Bitcoin would crash, 30%, 40%, 50% or even more, it would happen in a matter of days or even hours.

The slow decline is an indication that the Bitcoin craze or Bitcoin Bubble is likely over. When the craze hit a fever pitch following the Thanksgiving Holiday in the US, the price more than doubled in just about 25 days. The Bitcoin rally hit a peak on December 17th, 2017 when they were trading for more than $19,205 per coin. More so than that, the last time Bitcoin traded in the low $6,000 range, was before the Thanksgiving Holiday when it is believed many families sat around the dinner table and discussed the “can’t miss opportunity in cryptocurrencies.” Those discussions helped fuel 100,000 new accounts being opened that weekend and the price of Bitcoin hitting $9,000 for the first time.

The Thanksgiving dinner table conversations helped foster the “fear of missing out” trend that we saw catapult Bitcoin both into the limelight and at breathtaking prices. That fear soon faded as Bitcoin fell hard, from $19,205 to $14,500 in just five days, following it hitting its record and still all-time high. Ever since then the cryptocurrency has been on a downward trajectory.

The declining price has lessened interest from both the general public and big investors, and even now we have seen the media outlets reducing coverage on Bitcoin and other cryptocurrencies. Even Alphabet’s Google searches (Fig.1) are down dramatically since the peak. A further look at the price of Bitcoin (Fig.2) and the Google search trend of Bitcoin may tell another story. The two charts side by side look very, very similar. Continue reading "Bitcoin Fell 35% in March" →

S&P 500 and DOW In Correction Territory

Posted on by The INO.com Team

Hello traders everywhere. Thursday's positive gains failed to follow through on Monday after the Easter weekend with a widespread sell-off taking hold and pushing all three indexes into correction territory.

Tech troubles and tariffs have pushed the S&P 500 through the 200-day moving average which viewed as a critical level of support. Technical traders and chartist alike believe that this breach can foreshadow even more significant declines down the road.

Now let's talk about the word correction. A correction is defined as "a reverse movement, usually negative, of at least 10% in a stock, bond, commodity or index to adjust for an overvaluation".

Correction Territory

With that in mind, all three major indexes have dipped and flirted with correction territory today. At their lows of the day the S&P 500 was down 10.5%, The DOW was down 11.6%, and the NASDAQ was down 10.2% putting all three indexes in correction territory. Only the NASDAQ has been able to rebound, but it's still incredibly close to closing the day in a correction. Continue reading "S&P 500 and DOW In Correction Territory" →

The S&P 500 Has Two Options

Posted on by Aibek Burabayev

Aibek Burabayev - INO.com Contributor - Metals - S&P 500


Back in February, I shared a map for the possible development of a consolidation that started at the end of January in the S&P 500 index. The expected drop followed the post although a little bit postponed.

As top metals are literally dead and still between the confirmation levels these days, I would like to update a lively S&P 500 index chart. For the gauge of American stock market, I prepared two separate charts as it has reached the crucial support and we could have two future options here.

Chart 1. S&P 500 Weekly: Make It Or Break It

S&P 500
Chart courtesy of tradingview.com

In the monthly chart from my earlier post I added the orange, medium-term support, which I highlighted in black in the weekly chart above. As we can see, that support already stopped the previous drop in February and did it again at the end of March. If the price would freeze at these levels without breaking below the former trough, then the Triangle pattern (orange) could develop as lower highs and higher lows shape it. Continue reading "The S&P 500 Has Two Options" →

Why Rebalancing Your Portfolio Is Important

Posted on by Matt Thalman

Matt Thalman - INO.com Contributor - ETFs - Rebalancing


Despite only being three months into 2018, investors have been on quite a wild ride. The market started off the year as it ended 2017, on a tear higher, then the brief crash in early February, which led to a nice calm recovery during the remainder of the month just to run into what I’m calling “Whipsaw March” with the market jumping higher and lower by more than 1% nearly every other day. Not only have the major indexes been extremely volatile, but some of 2017’s biggest winners, big technology and especially the FANG stocks have seen their prices fall more than 10% in 2018.

Big pops that reverse fortune and the big drops that follow always cause investors to wonder what they could have done to protect themselves from the decline without completely abandoning their position.

The most straightforward and most effective answer to that situation is to rebalance your portfolio. Rebalancing is when you bring the percentage of your holdings back in line with each other.

For example, if you have a portfolio made up of 10 stocks and each represents roughly 10% of your portfolio, you would have a ‘balanced portfolio.’ Now if one of your stocks outperformed the others and ended up representing say 25% of your portfolio, instead of just 10%, then you would rebalance by selling some of your shares in that company until it represented 10% of your total portfolio. Continue reading "Why Rebalancing Your Portfolio Is Important" →

Stocks End Tough Quarter Higher On The Day

Posted on by The INO.com Team

Hello traders everywhere. The stock market is looking to close out a tumultuous first quarter of 2018 with positive daily gains in a holiday-shortened trading week albeit on light trading volume heading into the holiday weekend. The Easter holiday may be a much-needed break for beat-up traders to lick their wounds and start fresh come Monday.

For the first time in in the previous nine quarters, the S&P 500 and DOW are posting quarterly losses breaking an impressive winning streak. While the NASDAQ is posting a positive quarterly gain of 1.5% marking seven straight winning quarters, which is surprising given the recent rout in the tech sector. With the likes of Facebook (FB), Amazon (AMZN), Netflix (NFLX), Alibaba (BABA) and many other tech stocks taking huge losses recently.

Easter Holiday

The U.S. Dollar is closing out the first quarter of 2018 with its fifth straight quarterly loss, a loss of 2.3%. Data on Thursday showed U.S. consumer spending rose marginally for a second consecutive month in February as households boosted savings, the latest indication that the economy lost momentum in the first quarter. Continue reading "Stocks End Tough Quarter Higher On The Day" →