Death And Probably Taxes
Mati Greenspan | Apr 26, 2017 05:53AM ET
There are two things that are guaranteed in life. It seems that everything else is a matter of consideration.
At least, that's what we're getting from the Trump administration. Very soon, "probably" today, President Trump will announce further details on his sweeping tax reform.
Don't get too excited yet though. By further details, the Trump administration actually means that they'll be giving a broad outline and those minute things like who's gonna pay for what and how much things are going to cost, well, that's all still under consideration.
Today's Highlights
Nasdaq 6k!!
BoJ tonight
Bitcoin eye on $1300
Please note: All data, figures & graphs are valid as of April 26th. All trading carries risk. Only risk capital you're prepared to lose.
Market Overview:
Stocks are on fire. The Nasdaq broke a new all time high of 6000 points. A significant milestone no doubt. Please note, there is a wide difference between the Nasdaq that you're seeing in the headlines and the Nsdq100 contracts that are traded in eToro and other online brokers.
It is difficult to understand where the optimism is coming from. Investors in eToro remain short on most of the major stock indices as they have been since the election of Donald Trump on November 9th.
Geopolitical risks have not faded. Le Pen still has a decent chance of winning the French elections on May 7th and Theresa May's election gamble is still an open invitation to any UK politician who can mobilize quickly. The issues in Syria and North Korea are very far from resolved, nor does it seem that we've seen any significant progress since the world was in a panic just a week ago.
Nevertheless, the markets are trading with extreme optimism. Stocks are up across the globe and the hallmark safe havens are all declining.
Gold is down to it's the lowest level in 2 weeks. There is some possibility for support at $1260 in the short term. If it breaks the yellow line below though the next real support isn't until about $1225.
Get The News You Want
Investors seem to be ignoring crude oil at the moment, which is suspiciously hanging out below $50 a barrel. The inventories figures this afternoon could have some impact there as well.
The yen is falling fast, indicating that investors in Asia aren't scared of anything right now. Here we can see the US dollar rising against the yen. The 111.50 (dotted yellow line) represents a significant barrier. In the last few moments, Japanese traders have taken it right up to the fence.
The Bank of Japan will be having a big conference tonight. Very recently they have indicated that they plan to continue their aggressive QE program until reaching 2% inflation. Or, in layman's terms, they want to keep printing money until it loses value or they run out of ink.
So, if they do decide to make any sudden shifts in policy it will certainly be a surprise. Governor Kuroda has surprised the markets many times before so be ready for anything. At least, if there is a surprise, please don't be shocked.
BITCOIN
Last but not least, we need to take a good look at Bitcoin this morning rising to $1290 a coin. The all time high (blue line) is just ten little dollars away.
Of course, a break of $1300 would lead to lots more headlines and more interest. Here, take a look at google trends and let me know if you spot any particular theme.
On the surface, it seems that mass integration of digital wallets could very soon be part of our everyday lives. They're calling it the tipping point. Once it becomes a regular thing to walk into a Japanese store, pay with your smartphone, and walk out, it's only a matter of time.
If India lifts restrictions on bitcoin payments, that would put a good portion of the world's population on the blockchain.
The number that I've been watching like a junky is the total market cap of all cryptocurrencies. In yesterday's update, we mentioned that it had crossed $30 Billion for the first time ever. At the moment stands at $31.25 Billion.
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