For those looking for key market inflection points, BMO’s Brad Wishak highlights a divergence that was a key tell for recent market action, and may portend even more pain in the coming weeks.
According to Wishak, one place that telegraphed the recent market turmoil was the venerable New York Stock Exchange: the NYSE is the worlds largest stock exchange by market cap (21 trillion) yet “seems to get very little main stream attention for reasons I’ll never understand.”
And, Wishak adds, “when the largest stock exchange in the world throws up a few negative divergences, I want to listen” for the following three reasons:
While the other major indices are hugging their 200 dma, the NYSE is firmly through it
Additionally, the 2018 Channel trend line support broken
But the biggest tell for me took place in September….while all the other majors were marking fresh all time highs, the largest exchange in the world wasn’t even close to confirming ….this doesn’t happen often………another one for the radar
Bitcoin’s 150% surge since the beginning of the year has caught the attention of “Mrs. Watanabe,” the metaphorical Japanese housewife investor, and a legion of South Korean retirees who’re hoping to escape rock-bottom interest rates by investing in cryptocurrencies,according to Reuters.
Retail investors in Asia, many of whom are already regular investors in stock and futures markets, are turning to bitcoin in droves. Trading volume on Asia-based exchanges exploded following a Japanese law that officially designated bitcoin as legal currency. And now thatthe largest Chinese exchanges have reinstated customer withdrawals,the bitcoin market in China will likely stabilize, and the price will likely rise as a result.
One of the retail traders interviewedby Reuterssaid she started with bitcoin because she’s worried she won’t be able to rely on her pension.
“After I first heard about the bitcoin scheme, I was so excited I couldn’t sleep. It’s like buying a dream,” said Mutsuko Higo, a 55-year-old Japanese social insurance and labor consultant who bought around 200,000 yen ($1800) worth of bitcoin in March to supplement her retirement savings.”
“Everyone says we can’t rely on Japanese pensions anymore,” she said. “This worries me, so I started bitcoins.”
Another trader noted that most South Korean buyers see bitcoin as an investment; few plan to use it for payments purposes.
The risks for these traders are high,Reuters says,alluding to the collapse of Mt. Gox, which led to hundreds of millions of dollars in losses for its customers.
The digital currency is largely unregulated in Asia. In Hong Kong, exchanges operate with a money-changer’s license, while in South Korea they are regulated like online shopping malls,Reuters says.
There’s also a burgeoning cottage industry of seminars, social media and blogs all designed to promote bitcoin or bitcoin-like schemes. The cryptocurrency world is rife with scams, and pyramid schemes are becoming increasingly common.
Police in South Korea last month uncovered a $55 million cryptocurrency pyramid scheme that sucked in thousands of homemakers, workers and self-employed businessmen seduced by slick marketing and promises of wealth, Reuters reported.
Seminars in Tokyo, Seoul and Hong Kong promote schemes that require investors to pay an upfront membership fee of as much as $9,000,according to Reuters.Investors in these scams are encouraged to promote the cryptocurrency and bring in new members in return for some bitcoins and other benefits.
One Tokyo scheme offered members-only shopping websites that accept bitcoin, 24-hour car assistance and computer problems, and bitcoin-based gifts when a member gets married, has a baby – or even dies, according to marketing materials seenby Reuters.
Leonhard Weese, president of the Bitcoin Association of Hong Kong and a bitcoin investor, warned amateur investors against speculating in the digital currency.
“Trading carries huge risk: there is no investor protection and plenty of market manipulation and insider trading. Some of the exchanges cannot be trusted in my opinion.”
Regulators in China have already cracked down on money laundering at local exchanges. South Korea’s Financial Services Commission has set up a task force to explore regulating cryptocurrencies, but it has not set a timeline for publishing its conclusions,Reuters reported.
And Japan’s Financial Services Agency (FSA) supervises bitcoin exchanges, but not traders or investors.
“The government is not guaranteeing the value of cryptocurrencies. We are asking for bitcoin exchanges to fully explain the risk of sharp price moves,” an FSA official told Reuters.
Bitcoin was trading $2,529 on Coinbase Sunday, while it traded at $2,593 on Bitflyer, one of the largest Japanese exchanges.
One Japanese finance blogger said his most popular article has been an explanation of bitcoin. Readership of the article doubled last month when bitcoin was on its record run.
Rachel Poole, a Hong Kong-based kindergarten teacher, said she read about bitcoin in the press, and bought five bitcoins in March for around HK$40,000 ($5,100) after studying blogs on the topic. She kept four as an investment and has made HK$12,000 tax-free trading the fifth after classes.
“I wish I’d done it earlier,” she said.
Clif High – Crypto Currencies Break Loose, then Gold & Silver (video)
Where does Internet data mining expert Clif High see Bitcoin going in the hyperinflation we are heading into? Clif High says, “I’ve got what you call a strike point, a numeric value our data sets are aiming at that shows Bitcoin should be about $13,800 sometime in early February of 2018. That will basically be a fivefold increase at what we are at now. . . . I always thought cryptos would have to break out first in order to upset . . . the structure of the central banks so silver and gold could break loose. I suspect silver will break loose. The rocket shot on that will be staggering, but bear in mind I am the Internet’s worst silver forecaster. I have had silver at $600 per ounce in our data since 2003. If that occurs, look at how shocking and rapid that rise is going to be.”
High goes on to say, “Gold and silver are the most undervalued assets on the planet.” . . . And he predicts “by early February, gold will be at $4,800 per ounce and silver will be around $600 per ounce.”
High also says, “The Fed can’t kill crypto currencies . . . The elites are fearful because they can’t control crypto currencies, and they can’t suppress them. There will be no more source of free printed money for bribing people. . . . When the dollar dies, the corruption and crime will be revealed.”
Join Greg Hunter as he goes One-on-One with Internet data mining expert Clif High of HalfPastHuman.com.
“The market wants to do it’s sole job which is to establish fair market value. I am talking currencies, housing, crude oil, derivatives and the stock market. This will correct to fair market value. It’s a mathematical certainty, and it’s already begun.”
Financial analyst and trader Gregory Mannarino thinks the coming market crash will be especially bad for people not awake or prepared. Mannarino says, “This is going to get a lot worse. On an individual level, we have to understand what we have to do for ourselves and our families to get through this. No matter what is happening on the political front, there is no stopping what is coming. . . . We’re going back to a two-tier society. We are seeing it happen. The middle class is being systematically destroyed. We are going to have a feudal system of the haves and the have nots. People walking around blindly thinking it’s going to be okay are going to suffer the worst.”
Mannarino’s advice is to “Bet against this debt, and that means hold hard assets; also, become your own central bank. Their system has already failed and it’s coming apart.”