Happy days for crypto stocks
Tuesday, 19 December 2017
By Bernd Struben
- Is bitcoin useless?
- Microcap stock surges 2,600%…in one week
- In today’s Australian Tribune…
Yesterday we released the first video in Jason McIntosh’s five-part ‘Trade Secrets’ information sessions.
In his previous life, Jason was a highly successful trader for a Wall Street investment bank based in Sydney. So successful he retired at the age of 40.
In 2014, colleagues Greg Canavan and Kris Sayce convinced him to come out of retirement. As you may know, Jason then launched his premium trading service, Quant Trader.
How have his trades been performing?
Well, his unique trading approach picked 16 of the 20 best performing stocks from the ASX 300 during the last financial year.
That’s right. 80% of the top stocks.
But Jason does more than send regular trade signals — long and short — to his subscribers. He’s also big on education. And he aims to help his subscribers learn how to make these kinds of trades themselves.
This week he agreed to share his trading techniques with all of our paying subscribers…for free.
Most traders focus on the wrong thing. And they ignore the fundamental rule of trading stocks.
In the part two of Trade Secrets, Jason explains exactly how you know when to take profit on an open trade.
This five-part series is entirely free to you. And it could change the way you trade stocks forever.
Now to the markets, where all three major US indices beat Friday’s record highs to once more set new records.
Investors across the globe are reacting with exuberance — perhaps irrational, perhaps not — over Donald Trump’s tax cuts. The cuts will see the US corporate tax rate slashed from its current 35% to 21%.
How much of that ‘trickles down’ to the man in the street is hotly debated. But few contest the massive reduction in tax burdens will see corporate profits soar, dividends rise and likely spark a wave of share buybacks.
The move also provides Malcolm Turnbull and Scott Morrison with leverage to cut Australia’s rates to 25% for all businesses.
With the pending tax cuts in mind, overnight, the Dow Jones Industrial Average closed up 140.46 points, or 0.57%.
The S&P 500 rose 14.35 points, or 0.54%.
In Europe, the Euro Stoxx 50 index finished up 48.89 points, or 1.37%. Meanwhile, the FTSE 100 gained 0.62% and Germany’s DAX rose 208.74 points, or 1.59%.
In Asian markets, Japan’s Nikkei 225 index is up 1.81 points, or 0.01%. And China’s CSI 300 is up 0.80%.
In Australia, the S&P/ASX 200 is up 40.97 points, or 0.68%.
On the commodities markets, West Texas Intermediate crude oil is US$57.28 per barrel. Brent crude is US$63.41 per barrel.
Gold is trading for US$1,261.03 (AU$1,644.97) per troy ounce. Silver is US$16.12 (AU$21.03) per troy ounce.
One bitcoin is worth US$18.919.38.
The Aussie dollar is worth 76.66 US cents.
Is bitcoin useless?
After peaking above US$20,000, bitcoin has retreated. But not much.
It’s currently trading for US$18.919.38.
No one can say for sure where the price is headed next. Our in-house crypto experts, Sam Volkering and Ryan Dinse, do caution that a significant pullback could be on the cards.
But Sam argues that a fall of even 50% wouldn’t be a bad thing. It would serve to shake loose the ‘weak hands’, the speculators hoping for a quick buck.
And Sam’s confident that after any such price fall, bitcoin will continue its march to new highs…past US$20,000…onto US$50,000 and beyond.
He may well be right. After all, Sam called for US$20,000 bitcoin last year, when it was trading for less than US$600. At the time, some readers accused him of hyperbole. Those same readers are oddly quiet these days.
But longer term bitcoin does face some big hurdles. Not just from anxious governments looking to stem their loss of financial control, but from the myriad of crypto competitors.
Bitcoin cash is one to keep an eye on. It ‘forked’ from the bitcoin blockchain on 1 August this year. Have a look at the price chart below:
Source: World Coin Index
Click to enlarge
On 1 August, bitcoin cash traded for US$281. Today it’s up to US$2,196. A handy 681% gain.
Part of the appeal of bitcoin cash is its faster transaction speeds…and lower transaction costs. As more people pile into bitcoin, the transaction costs are rising. And it can take several hours to complete a transaction.
This fact has seen Emil Oldenburg, the co-founder of bitcoin.com, sell all of his bitcoin, declaring it ‘as good useless’.
From The Australian Financial Review:
‘Bitcoin.com is one of the world’s largest bitcoin sites, having grown its profile thanks to the insane price surge of the cryptocurrency this year. But its co-founder and CTO, Emil Oldenburg, a Swedish native, is extremely skeptical of bitcoin’s future.
‘“I would say an investment in bitcoin is right now the riskiest investment you can make. There’s an extremely high risk,” he says in an interview with Swedish tech site Breakit.
‘“I have in fact sold all my bitcoins recently and switched to bitcoin cash,” says Oldenburg, referring to the problems with bitcoin’s high transaction costs and lead times.’
It’s a good reminder of the old investment cliché, ‘Don’t put all your eggs in one basket.’ And it’s why Sam and Ryan recommend spreading your crypto investments across a number of digital tokens.
Over at their entry level service, Secret Crypto Network, they currently have nine different crypto recommendations.
Bitcoin is one of them. And it’s up 631% since entering the buy list.
Litecoin is another. It’s currently up 707% since they recommended their readers buy some back in July.
You can get all the details on the other seven cryptos in the buy list — and why Sam and Ryan believe these are among the ‘must have tokens’ — here.
Microcap stock surges 2,600%…in one week
Moving on to stocks — but not really away from cryptos — have a look at the chart below.
Click to enlarge
Shares in microcap stock Longfin Corp [NASDAQ:LFIN], surged more than 2,600% over the past week. Prices peaked on Monday (US time) before giving back some of their gains in intraday trading. Although they still closed up 228% for the day.
What sent the share price rocketing?
The company’s move into blockchain — the distributed ledger technology behind cryptocurrencies.
‘Fintech plus cryptocurrency equals about $7 billion.
‘That’s how much the value of LongFin Corp. surged to after the microcap’s stock rocketed by as much as 2,600 percent since debuting Wednesday. Most of the gains came since Friday, when the company issued a press release saying it bought Ziddu.com, “a blockchain-empowered global micro-lending solutions provider” that transacts only in cryptocurrencies.
‘LongFin joins a growing list of little-known companies that have seen their values soar after simply announcing plans to join the digital currency craze that’s pushed the value of bitcoin past $300 billion.’
This is the kind of price action you can expect from what Ryan Dinse calls the ‘Blockchain Collision’.
Ryan asserts that blockchain ‘is going to revolutionise everything in ways we cannot yet imagine. It’s also going to make early-adopter investors very, very wealthy.’
In his entry level, small-cap investing service, Exponential Stock Investor, Ryan hunts down small companies that are set to make explosive share price gains from this revolutionary new technology.
Stocks like . At time of writing, the share price is up 344% since Ryan’s recommendation on 24 October. That’s 344% in less than two months.
Now small-cap stocks are notoriously risky. And not every one of Ryan’s recommendations has made gains like this. At time of writing the biggest loser, is down 3%.
But with the potential for some truly explosive gains, it’s no wonder that Exponential Stock Investor has quickly become one of our most popular advisory services. Since launching on 24 October, 10,446 subscribers have joined Ryan’s service. And counting.
If you haven’t already, you can find out all about it here.
Before signing off…
In today’s Australian Tribune: ‘Socialists Bemoan Welfare Waiting Period for New Migrants’
‘Under the current system, new migrants can hold their hand out for welfare payments the moment they step foot in Australia.
‘That includes family tax benefits, paid parental leave and carer allowances.
‘Excessive levels of migration are already a pressing concern. Far more people are turned away from Australia than permitted to settle here.
‘Offering instant welfare payments appears a perverse incentive. One that may entice some migrants to move here with little desire to be productive citizens…’
The Australian Tribune is Port Phillip Publishing’s new, politically oriented newsletter and website.
If you’re fed up with reading sanitised, politically correct dogma cut and pasted from one mainstream source to another then The Australian Tribune is for you.
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