LONG BITCOIN TO BOTTOM AT $5K? History reveals hidden "There is nothing new in Wall Street. There can’t be because speculation is as old as the hills. Whatever happens in the stock market today has happened before and will happen again" -Jesse Livermore. Despite claims that millennials are the most purpose driven generation, history shows they have failed to overcome the traps of speculation and investment. From the Tulip bubble(1634) to the Gold bubble(1980), we saw the psychology of fear and greed in market prices. Just when it seemed investors and traders have learned, then came the dot com bubble(1996) which was followed by the Real estate bubble(2008). In the middle of the financial crisis in 2008, A new technology was born, with a promise to end all financial crisis and restore trust to the financial system. Despite its disruptive and use case, we have found ourselves once again in a bubble which raises the question, "Have we ever learned from history?"
I will argue that yes we have. The fact is, regardless of the disruptive nature of any invention, markets eventually run ahead of reality, greed kicks in and then comes the dip. Bubble are arguably healthy for the ecosystem as it eliminate the "dump money" looking to get rich quick. They also create Technical entry points for long term investor. But how do we know when a market has bottom?
History has shown that most market crashes are likely to bottom at 75% dip on just below. Stock market traders use market sentiment charts to measure this. For stock trading, when the market sentiment index scale(0-100) reaches or drops below 25, it indicates a buy signal. Looking at the BTCUSD chart, price fall from all time high to $5000 or slightly below indicate a dip of 75% which shows we are left with 25%. Cryptocurrencies are a highly volatile asset class and thus, its very difficult to pin point the exact momentum to which the price will reverse. This for what it is, will serve as a technical point for a major reversal together with fundamentals at the given time.
Realestate
IYR, Daily, BearishThere's a triple divergence on the IYR chart (U.S. Real Estate ETF).
1. First high
2. Second high, lower high on MACD
3. Third high, even lower high on MACD
There is some space between 1. and 2. on the MACD. I would appreciate if anyone knows whether the MACD gap would disqualify 1. as the first high in a divergence analysis.
$POLY The Future of Tokenized SecuritiesPoly has been on a steady uptrend minus the latest downtrend due to BTC. I do anticipate however the start of a massive uptrend once Bitcoin breaks back to the upside over 12,000 causing a massive surge in Alts especially with its niche technology of tokenizing commodities, real estate, venture funds and venture capitol.
IYR Weekly - interesting locationJust an observation on the real estate ETF while I was reading up on the US mortgage debt and its connection to real estate stocks.
Intriguing as I learn more this. IYR is in an very interesting spot.
Apparently, the current mortgage debt levels are similar to levels leading up to the 2008 crash.
fred.stlouisfed.org
UNIBAIL RODAMCO possible break up!!Unibail could break up all the way to 230. Watch out at this levels, price action rules. It will probably get to 219 and at that level we will check closing and opening price. It should happen by this week.
I am already long since 208 and this week will decide if I will keep it long or short it.
Have a nice trade :)
Profit taking level reachedInvestors may realise some of the +5.5% and let the rest run. If price pulls back, we are provided with another opportunity to buy cheap.
Technically Speaking, Real Estate Could Move UpThe SPDR fund tracking the Real Estate Sector (XLRE) has been in a clearly defined upward trend since November 2016. As of the close on May 12, this fund is at the bottom of the cycle which is near a strongly established support. The projected future movements are highlighted below.
When we take a look at other technical indicators, the relative strength index (RSI) is at 41.0131. RSI tends to determine trends, overbought and oversold levels as well as likelihood of price swings. I personally use anything above 75 as overbought and anything under 25 as oversold. The current reading has the fund relatively neutral although it recently came down from near the overbought level The RSI is currently at a similar level where all the previous bottoms have occurred. This is the first indicator the fund should begin moving up.
The true strength index (TSI) is currently 2.6338. The TSI determines overbought/oversold levels and/or current trend. I solely use this as an indicator of trend as overbought and oversold levels vary. The TSI is double smoothed in its calculation and is a great indicator of upward and downward movement. The current reading declares the stock has been moving down, however, it is also near the same level where the previous bottoms in this cycle have been established. The TSI has also been trending up in a bullish wedge pattern. With the indicator around the same support level, this is the second indicator the fund should begin moving up.
The positive vortex indicator (VI) is at 0.8623 and the negative is at 1.1873. When the positive level is higher than 1 and higher than the negative indicator, the overall price action is moving upward. When the negative level is higher than 1 and higher than the positive indicator, the overall price action is moving downward. Currently the negative indicator is slowly moving upward which is bearish for the fund. At the same time, the positive indicator has begun to move upward. When the negative indicator finally does reverse downward and the positive makes more strident gains, the fund should be in its upward cycle.
The stochastic oscillator K value is 39.1887 and D value is 41.1774. This is a cyclical oscillator that is highly accurate and can be used to identify overbought/oversold levels as well as pending reversals and short-term activity. I personally use anything above 80 as overbought and below 20 as oversold. When the K value is higher than the D value, the stock is trending up. When the D value is higher that the K value the stock is trending down. This indicator is technically in the middle of the oscillation possibilities at the moment. The next 2-5 trading days are pertinent to determine if the actual long-term movement is to the upside.
I have broken down the last three times the fund was near its current point in the trend channel. All three of them resulted in a minimal gain of 3.92% in a minimum of 12 trading days. My current projected movement is on the conservative side, however, the stop-loss will be any movement below 31.24. Movement to this level breaks outside the support level and could lead to major downward movement for the fund.
Considering the RSI, TSI, VI and stochastic levels, the overall direction favors a move to the upside, although definitive upward movement may take a few more days to develop. Based on historical movement compared to current levels and the current position, the stock could gain at least 3% over the next 22 trading days if not sooner.
More information at LimitLessLifeSkills
Sell Intu PropertiesIntu has under performed the FTSE and the Real Estate sector over the past 3 months. The short term trend is negative and the stock scores poorly in my fundamental model.
Great Opportunity to buy farmland in South AmericaThis stock buys you land all over South America.
319,000 Hectares between Brazil and Paraguay, just to name a few (mostly in Brazil).
Exposure to an incredible emerging market.
Exposure to commodities long term (grain and sugar mostly, cattle as well)
Management is a powerhouse.
JP Morgan owns 7% of the float.
George Soros made this company happen.
Google Eduardo Elsztain - greatest Argentine real estate investor. He's LND's Chairman.
Commodity prices are depressed. As commodities rise in the future it will generate more income for farmland.
Brazilian currency has gotten crushed in the last 10 years. New strength in the Real will benefit Brazil's economy.
Company has no debt.
Excellent growth.
Farmland known for its fantastic risk/return profile (it's land in Brazil, Peru, Chile, Argentina, etc, not a technology fad).
Under $5 per share so institutions are not allowed to invest, yet. What happens when prices hover above $5 per share? Domestic institutions have this stock on their radar and capital flows one way.
Boo Ya.
Most importantly, we have a great looking chart.
Lumber is Sinking – Is Housing Next?Earlier this month, the idea of lumber being a signal for economic data was brought to the table (here). Lumber is not necessarily a trader’s first go-to for evaluating economic forecasts, but there is a striking resemblance in trend for lumber and the ISM manufacturing PMI data. As lumber prices dive, manufacturing data tends to do the same (and vice versa). Lumber, reasonably so, is also correlated to housing; and the US cannot have a recovery without housing participating.
The housing data over the last few years has been lackluster, and today’s data is no exception. Housing starts contracted a whopping 17 percent. That’s 14.5 percent lower than general forecasts. Weather was cold, and it is always to blame.
However, analysts were already discounting the weather issue. Wall Street’s best and brightest were looking for a drop of only 2.5 percent, so clearly it is not just the weather. According to the US Department of Housing and Urban Development, privately-owned housing starts were seasonally-adjusted at an annual rate of 897,000, or 17 percent below the revised January estimate. Single-family housing starts in February were at a seasonally-adjusted annual rate of 697,000, or 14.9 percent below the revised January estimate. Not good.
Housing completions of privately-owned housing fell came in at a seasonally-adjusted annual rate of 850,000, or 13.8 percent below the revised January estimate of 986,000.
The “recovery” bulls will harp on the permits data which was three percent higher than the general consensus. But, let’s be objective. Permits do not particularly matter much because builders cannot sell permits. Building permits are also cyclical. They tend to rise to elevated levels on optimistic outlooks but then completely collapse right be for the next recession. Permits could continue to rise, but it is not indicative of a healthy housing sector, or economy for that matter.
umber has closed well-below the massive ascending channel created when prices bottomed in 2009. Currently trading at $270.90, lumber prices are down almost 14 percent since first bring more attention to lumber a month ago. The basic assumption is that low prices are great for builders and the housing sector in general, and they are at the margin. However, a trend shift in prices indicate that homebuilders are not purchasing lumber. Homebuilder confidence fell for a third consecutive month in March.
Prices saw a bit of support at $265 but could easily hit $245 on trend continuation. To illustrate the correlation of lumber to housing, check out lumber prices relative to the iShares DJ Home Construction ETF (ITB) and the SPDR S&P Homebuilders ETF (XHB). It’s not a perfect match, but it grasps the overall trend quite well. Notice the prices of lumber, ITB, XHB leading into the housing crisis – they collapsed. This time should be no different.
The two popular ETFs now trade at a premium to lumber prices, but the upward trajectory is stalling; and this is far likely contributed to Fed-induced buying (similar to the XLE and future prices). It is only a matter of time before housing ETFs begin to rollover, too.
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