Just yesterday we noted the resurgence in Bitcoin as China turmoil accelerates, but overnight (as Yuan weakened further), demand for the cryptocurrency has soared once again, sending the price (in USD) to $875 - the highest since Dec 2013. Bitcoin is up over 10% this week alone.
Bitcoin is soaring...We first warned of this 'outlet' for Chinese capital in September 2015 when Bitcoin was trading around $200...now it is trading at $875
Measuring investor sentiment is the closest thing to a “free lunch” in the investing world. Knowing that the investing public cannot buy or sell forever means that, at some point, they’ll stop and prices will react accordingly. Measuring investor sentiment aims to identify these points in time. Fortunately, there are a variety of different ways to gauge sentiment and to identify extremes in investor behavior. These extremes typically indicate turning points in a market or at least peaks in momentum.
European, Asian stocks and S&P futures all declined amid collapsing volumes, after the Wednesday drop in the S&P500, and after oil prices held losses amid an unexpected increase in supplies, as traders close out trades ahead of the holidays. Top overnight news include the imminent nationalization of Monte Paschi, the ongoing manhunt for the German Christmas market terrorist, Uber halting its self-driving car test in San Francisco, and the anti-China, anti-regulation moves in the Trump administration.
While it's not as applicable today, there used to be a saying that "as goes GM, so goes the economy." While the "Big 3" aren't quite as big as they used to be, they still offer vital clues about the overall economic health of the United States. Unfortunately for anyone who has been paying attention, those "vital clues" are all flashing red warning signs as each passing day seems to bring more news of idled plants and/or shift reductions (see here and here). Of course, rising interest rates, tightening credit, softening used car prices and rising subprime auto delinquenci
Too soon?
Source: The Burning Platform blog