Category Archives: Stock market

5G is a new beginning and partly a turning point, but certainly nothing less than a revolution

The 2019 International CES show started today in Las Vegas, and it will end on Friday, 11 January. CES is the world`s gathering place for those who thrive on the business of consumer technologies. It has served as the proving ground for innovators and breakthrough technologies for 50 years.

This is the global stage where next generation innovations are introduced to the marketplace, and its owned by Consumer Technology Association (CTA). This gathering attracts the worlds business leaders and pioneering thinkers.

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I have been following Apple for decades and I expect them to be in Las Vegas this week. We all know that AI is the future, but how is Apple`s innovation when it comes to Smart home tech? It seems like they are falling behind in the Smart home race.

Both, Google and Amazon are now integrating Alexa and Google assistant into Smart home devices. Voice assistants are cropping up in all kinds of places at CES 2019 and what I think is a cool thing to have is both voice and touchscreen in the bathroom mirror.

This Smart Mirror allows you to access Google Assistant were you can check the weather and traffic, or stream some YouTube videos while you are fixing your hear before you are going out for your next date.

Its brilliant because you have only two hands and none of them are free. Youre fixing your hair right. So, while you`re fixing your hair, you just have to ask the mirror what time it is, what the weather is or when your next bus is coming. All this without using your hands.

Everything is connected and to do so you need 5G, which is enabling the Internet of Things (IoT). Cars, heating systems and even trash cans are becoming involved in the net. 5G is super fast and makes the IoT possible. 5G is 100x faster than 4G and 10x faster than the best home-subscriber broadband service.

You need 5G to run your new driverless car and it`s all based on a computer with GPS built-in it. 5G is nothing less than a revolution. It is in such capacities that it becomes clear why the technologies from 2G to 4G differ so radically from the fifth generation, and that is awaiting us is partly a new beginning and partly a turning point, but certainly nothing less than a revolution.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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If this a an average bear market we will se it bounce very soon

It has been a brutal stock sell off in December and so far in 2019, and MSM is telling you that we are officially in a bear market. It seems like the market is pricing in a recession, but it can be too early to say so.

The 10-year Treasury remain below 3 percent and the FED shouldn`t raise rates for the 10th time in 2019. If they push the hold button, I think the market will be happy and bullish again. Just look at the healthy job market and the strength of the U.S economy.

December 2018 was the worst December for the Dow since 1931, but if we avoid a recession I think investors are lucky to have a lot of cheap stocks. It is a China-U.S trade war, and the global economy is in a growth slowdown, but that doesn`t automatically mean recession.

We can see a support for the S&P 500 very soon, and this is also a point were investors pay for their insurance. And that is also a point were the bear market ends. Technical analysis tells us that if this is the right thing right now, a drop to around 2,300 points would likely spark a bounce from here.

Statistically, the average bear market stops right after, or right before it officially began. It remain to see that this is happening again. A closer look at the 48-month SMA, the market failed to bounce in August 2008 which led to the biggest drop since the Great Depression. The same happened in 2001.

Is this drop a new 2001 or 2008? If not, we can see a support just like it did in 1987, 1990 and 2016. The S&P 500 has lost 20,2 percent, and the Dow is down 19,4 percent, while Nasdaq is down 23,9 percent. The Russell 2000 is down 27,3 percent, so the coming days will be interesting. Anyway; this a great moment for day traders.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

 

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The worst Christmas Eve ever followed by the biggest one-day point gain on record

Christmas eve 2018 was the worst ever, and I`m talking about the stock market. Stocks was hit hard and saw the worst Christmas Eve declines ever and MSM blamed on Trump and his attack on the FED.

The bull was fighting back on the boxing day and Nasdaq had its best day since 20019. Not only that; The Dow saw its biggest one-day point gain on record. It was a massive jump for many of the tech stocks which means great days for day traders.

Nasdaq jumped nearly 6 percent were Amazon skyrocketed about 10 percent. Facebook and Netflix with a whopping 8 percent, and Apple up more than 7 percent. Alphabet class A was also up nearly 7 percent. What a day. What a Santa Rally.

Microsoft is down 15 percent from the top but is still 15 percent up YTD. Tuesday, President Trump said that this can be a good time to buy stocks. A closer look at Apple tells us that the tech Giant is near 200 MA and can be a great buying point. So can be said about Alphabet. Two stocks that day traders jumped into earlier today.

The volatility is up over 200 percent this year and it seems like this will continue. Some people are bullish while some people are bearish, and that`s how it is right now. A real fight between the bear and the bull. Awesome.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

 

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The wide spread between the 2-year note and the 10-year note is around 10 basis points which is the flattest since 2007

The stock marked plummeted on Tuesday with Nasdaq down near 4 percent. This is scary for many investors around the world. More scary is a quick look at the 2-year note that dropped more than 26 percent.

The wide spread between the 2-year note and the 10-year note is around 10 basis points which is the flattest since 2007. Bond prices move in the opposite direction of yields, and the spread between the 3-year note and the 5-year note have already inverted. 1-year note and 10-year isn`t near at all.

In a normal situation, the short-term bills yields less than the long-term bills, which means that investors expect a lower return when their money is tied up for a shorter period like 1,2 or 3-year notes. Investors require a higher yield to give them more return on a long-term investment.

If investors have little confidence in the near-term economy, the yield curve inverts. Investors demand more yield for a short-term investment than for a long-term one. They belive the near-term as riskier than the long-term.

In a situation like that, investors would prefer to buy long-term bonds and tie up their money for years in the long run even though they receive lower yields. The reason why investors do that is because they believe the economy is getting worse in the near-term.

An inverted yield curve is most worrying when it occurs with Treasury yields and that`s when yields on short-term Treasury bills, notes and bonds are higher than long-term yields. During healthy economic growth, the yield on a 30-year bond will be three pints higher than the yield on a three-month bill.

The reason why the short-term bill decline and makes an inverted yield curve is that investors believe they will make more by holding onto a longer-term bill than a short one. They think they need to reinvest in a short-term bill a few months any way.

If investors think that the economy is slowing and the recession is coming, they expect the value of the short-term bills to plunge in a short period of time. When the economy slows down, the FED lowers the Fed funds rate, and the short-term Treasury bill yields track the fed funds rate.

It is when the demand for long-term bills goes up that the demand for the short-terms bills goes down. Then the yield for short-terms bills goes up while the yield for the long-term bills goes down, and that`s whats happening now.

For example,when the yield on short-term Treasury’s rises higher than the yield on long-term bonds is where the yield curve inverts. The Treasury yield curve inverted for the first time since the recession. The 3-year note was higher than the 5-year note. Investors are saying that the economy is better in five years than in three years.

President Trump is disappointed when it comes to the FED`s descision to raise the rates which is going to raise to about 3,5 percent in 2020. Mr Trump and investors are worried it could trigger an economic slowdown in three years if the rates is too high.

This small inversion is probably temporary, but if it continues to grow bigger, we can be thrown into a recession. The current fed funds rate determines the outlook of the U.S economy, and people should never ignore an inverted yield curve. Just take a look at the history.

In June 2007, the yield curve was on the brink and went back and forth, between inverted and flat yield curve. The Fed reacted too late and lowered the fed funds rate ten times until it reached zero by the end of 2008.

The yield curve was no longer inverted but it was too late, and we know the rest of the story; The economy went into the worst recession since the Great Depression. This is just a reminder.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

 

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Cyber Monday can be the largest online sales day in history

Black Friday is over and now it is Cyber Monday. A new day with new opportunities. It`s Cyber Monday shopping for consumers to shop online, but it seems like it is Cyber Monday shopping on Wall Street too.

The Dow is up a whopping 373 pints amid expectations for a historic Cyber Monday. Nasdaq jumped 2,30 percent and ended at 6,677,26. I talked about the declining SPDR S&P Retail ETF on Friday last week, but it bounced back on Monday, up nearly 2 percent.

The shares of retailers rose on Monday after last week`s sell off. According to Adobe analytics, Cyber Monday spending is seen reaching an all-time high of $7,25 billion in the United States, and that will mark a historic day for online shopping.

Thanksgiving, Black Friday, Cyber Monday and the coming Holiday Season can help to lift retailers from the declining trend we have seen since October. The third-quarter reporting season is also over, with nearly 97 percent of companies in the S&P 500 having reported. 78 percent of the companies beat analyst expectations.

Cyber Monday is an event that can only be rivaled by Black Friday, and Cyber Monday is expected to set new spending records for online shopping in 2018. Not only total sales are high on Cyber Monday, but Cyber Monday is also likely to see a record number of online shoppers this year.

Cyber Monday was wild last year, but it jumped nearly 100 percent from 2016 to 2017. This year, the online sale is expected to jump over 10 percent. $7,25 billion in sales will be a new record for online sales in a single day.

Trade tensions will come back later on this week as President Donald Trump is planning to meet with Chinese President Xi Jinping at a multilateral Summit in Argentina on Friday and Saturday, with tariff escalation between the world`s largest economies on the line.

Investors are waiting for the G20 Summit convening in Buenos Aires on Friday and Saturday. In the mean time, be prepared for what can be the largest online sales day in history; Cyber Monday.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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