Trade Deal Signals, Unsustainable Debt and the ‘Unknown’ Bitcoin Fund: eToro Market Update
Hi Everyone,
In the fourth book of his brilliant trilogy The Hitchhiker’s Guide to the Galaxy, Douglas Adams explains how Dolphins are smarter than people and have been trying to communicate with us in code for quite some time.
The passage was so brilliant that it was used as the intro to the film adaptation, who even made an entire song about the porpoise’s final message.
It has me wondering, who else might be trying to communicate with us by code? The Fed perhaps??
In this 47-second clip of Jerome Powell’s recent testimony to Congress, we can see that he coughs twice. Each time was when mentioning a possible economic downturn. He also touches his nose when talking about a Congressional report that states the US budget is on an unsustainable path. Then near the end makes a rather unfortunate stutter/Freudian slip.
Fed Chair Powell: "The federal budget is on an unsustainable path with high and rising debt."
pic.twitter.com/o1blSFLeHy — Breaking911 (@Breaking911) November 13, 2019
We get your message, Powell. The economy is fine but the US debt is out of control.
This is something we’ve talked about many times in these updates. Certainly no need to panic, as long as they can continue paying the overhead everything should be fine for now. It’s more like one of those long-term problems that future America will need to deal with but always has the possibility of biting at any time.
@MatiGreenspan eToro, Senior Market Analyst
Today’s Highlights
- Kudlow on Trade
- Sales of the Day
- Anonymous & Unknown
Please note: All data, figures and graphs are valid as of November 15th. All trading carries risk. Only risk capital you can afford to lose.
Traditional Markets
This morning, US trade secretary Larry Kudlow is doing his best to sell the market on the story that the phase one trade deal is coming along well and it looks like it’s working.
Of course, anyone who looks past the headlines can easily see that the US and China still have a large gap in their expectations. Nevertheless, stock indices are testing their all-time highest levels today.
It would not at all be surprising to see a 5% to 10% correction when/if this deal blows up. Incidentally, the S&P 500 right now is about 6% above its 200 day moving average (blue line).
Data out Today
Retail sales are set to be released at 8:30 AM on Wall Street, one hour before the opening bell and could set the tone for the trading day.
Analysts are projecting core retails sales to be fairly strong at 0.3%. Here we can see the analysts forecast each month in gold and the actual figures in blue.
Something tells me that this release could be quite critical to understanding the current economy and so has the potential to have a larger than normal impact on the market. A strong number could give some much-needed confidence to those listening to the Fed’s newfound stable footing. A disappointment however…
Anonymous Resurfaces
The group iconized by their Guy Fawkes masks and tech-savvy anti-corruption antics are back in the news again and this time they’re promoting Bitcoin.
The last time we’ve heard from the group was when they declared war on ISIS but they gained widespread popularity in 2011 and 2012 with a very relatable message of holding people at the top accountable for their actions.
Now, they’re back with a message that data privacy is important. In this unique press release, they’ve outlined how big corporations are using the people’s own data against them and pledged a total of $75 million worth of bitcoin in order to promote projects that protect people from it.
It does look like they were aiming a bit higher though because the website’s source code actually says they are donating $100 million.
Perhaps they changed it at the last minute. In any case, the mission statement is clear.
Comments on the blog that we wrote on Wednesday about big tech’s push into financial services were resounding. Many people are simply not willing to trust Google, Facebook, Apple, and Amazon with their financial data. So what’s the alternative? I guess we’ll find out soon enough.
Once again, I’d like to send a huge thank you to everyone for the amazing feedback and encouragement you’ve given me over the years. This is what gives me the strength to move forward. Have a fantastic weekend.
Best regards,
Mati Greenspan
Senior Market Analyst
Connect with me on
eToro Twitter LinkedIn Telegram Your Social Investment Network – www.eToro.com
eToro (UK) Ltd is authorized and regulated by the Financial Conduct Authority. eToro (Europe) Ltd is authorized and regulated by the Cyprus Securities and Exchange Commission. eToro AUS Capital Pty Ltd. is regulated by the Australian Securities and Investments Commission, ABN 66 612 791 803, AFSL 491139.
This is a marketing communication and should not be taken as investment advice, personal recommendation, or an offer of, or solicitation to buy or sell, any financial instruments. This material has been prepared without having regard to any particular investment objectives or financial situation, and has not been prepared in accordance with the legal and regulatory requirements to promote independent research. Any references to past performance of a financial instrument, index or a packaged investment product are not, and should not be taken as, a reliable indicator of future results. eToro makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared utilizing publicly-available information.
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework. Your capital is at risk.
This content is sponsored and should be regarded as promotional material. Opinions and statements expressed herein are those of the author and do not reflect the opinions of The Daily Hodl. The Daily Hodl is not a subsidiary of or owned by any ICOs, blockchain startups or companies that advertise on our platform. Investors should do their due diligence before making any high-risk investments in any ICOs, blockchain startups or cryptocurrencies. Please be advised that your investments are at your own risk, and any losses you may incur are your responsibility.
