Bitcoin Loses Its Luster

Hello traders everywhere. Bitcoin experienced one of the most significant daily price losses of the year losing over -13% on Tuesday, its second-biggest daily loss of the year. In turn, that triggered a new red weekly Trade Triangle indicating that we are now in a sidelines position based on the intermediate to long-term strategy. In the short-term, this could be viewed as a switch from a bullish market to a bearish market for Bitcoin.

Why the sudden move lower? I believe it can be directly attributed to the growing calls for regulation of Facebook's Libra project and cryptocurrencies in general. Facebook's plan came under attack at a U.S. hearing this week, with senators calling the company delusional and untrustworthy. They also questioned the social media giant on how it was planning to prevent money laundering. And, a week ago, President Donald Trump called for banking regulation on bitcoin and Facebook's Libra.

Now many in the investor community are beginning to worry that Facebook's Libra project will end up fast-tracking regulations for the crypto market.

What do you think? Will this move by Facebook fast-track crypto regulations?

Key Levels To Watch This Week:

Continue reading "Bitcoin Loses Its Luster"

Capping Off A Record Week For Stocks

Hello traders everywhere. Stocks continued their momentum Friday ending a record-setting week on a high note after testimony from the top Federal Reserve official signaled that a rate cut was coming.

The Dow climbed +180 points to an all-time high. The S&P 500 traded 0.3% higher and also reached a record. The Nasdaq was up 0.4%.

The S&P 500 also notched a record close trading above $3,000 for the first time this week and looked to close above that level as near the close of trading this afternoon. The Dow closed above 27,000 for the first time Thursday and continues to trade above that level this afternoon.

The major indexes were headed for slight weekly gains. Entering the afternoon session, the Dow is up +1.16%, S&P 500 is up 0.5%, and the NASDAQ is up 0.47% while giving us a new green weekly Trade Triangle joining its brethren.

Fed Chair Jerome Powell testified in front of congressional leaders this week that "crosscurrents" from weaker overseas economic activity and rising trade tensions are dampening the outlook on the U.S. economy.

Key Levels To Watch Next Week:

Every Success,
Jeremy Lutz and

S&P 500, DOW And NASDAQ Close At Record Highs

Hello traders everywhere. Stocks traded higher and closed at record highs on this holiday-shortened day as investors bet on a possible rate cut from the Federal Reserve later this month after the release of weaker-than-expected economic data.

The S&P 500, DOW and NASDAQ all closed at record highs today. The S&P 500 posted a close of 2,995.82, the DOW 26,966.00 and NASDAQ rounded out the record closes at 8,170.23, just shy of its all-time high of 8,176.08.

Private payrolls in the U.S. increased by 102,000 in June, ADP and Moody's Analytics said. Economists polled by Dow Jones expected growth of 135,000.

The disappointing data strengthens the Fed's case for lowering rates at its monetary policy meeting at the end of July. Last month, the central bank opened the door to easier monetary policy by stating it will "act as appropriate" to maintain the current economic expansion.

Key Levels To Watch This Week:

Every Success,
Jeremy Lutz and

Stock Market Erases May Losses

Hello traders everywhere. As we enter the last couple of hours of June trading, I thought I'd take a look at the monthly charts and see where we stand. Not shockingly the S&P 500 and DOW both erased their May losses gaining +6.6% and +7.1% respectively while the NASDAQ is just short of erasing it's -7.9% loss with a June gain of +7.3%. These gains are mostly due to two things, the promise of a China trade deal and optimism that the Fed will announce a rate cut of at least 25 basis points in July.

The only laggard of the seven instruments that I track to have a losing month is the U.S. dollar which will post it's most significant monthly loss since December of last year standing at -1.4%.

Gold is having it's best month in quite a while gaining +8% for June as traders flock to the haven hedging their bets that a trade deal will get done. This is the first time since April of 2018 that gold has traded above the $1400 level. Continue reading "Stock Market Erases May Losses"

And Still, We Wait

Hello traders everywhere. "We were about 90% of the way there (with a deal) and I think there’s a path to complete this," Mnuchin told CNBC's Hadley Gamble on Wednesday, without providing detail on what the final 10% of an agreement might entail. He said he's confident President Donald Trump and Chinese President Xi Jinping can make progress in stalled trade talks at the forthcoming Group of 20 (G-20) meeting this weekend. Yet, here we are still waiting on a trade deal with China.

We're also still waiting on a decision from a confused Fed. Investors are betting the Fed will cut rates by at least 25 basis points in July. Those expectations helped lift the major stock indexes this month. The Dow and S&P 500 were both up at least 6% for June entering Wednesday’s session. The Nasdaq was up 5.8%. Continue reading "And Still, We Wait"