Cryptocurrency, Market Summary

2 min Market Summary: 29 Nov 2018

Posted on by TrackRecord Trading

NOTABLE MOVES  

USDJPY, +0.18%, $113.80.
EURUSD, -0.27%, $1.1297.
GBPUSD, -0.72%, $1.2742.
USDCAD, +0.35%, $1.3298.

S&P500, +0.33%, 2,682.17
Nasdaq, +0.01%, 7,082.70
Nikkei, +0.64%, 21,952.40

CURRENCY MARKET WRAP  

  • U.S. Prelim GDP q/q at 3.5% vs expected 3.6%. Fed Chair Powell said he sees current interest rates “just below” neutral. That proved to be a rally point because the language Powell used early last month indicated a view that the fed funds rate was “a long way from neutral.” Powell added that there is no preset policy path, and the Fed will be data-dependent in its decision making, which pleased investors. By highlighting risks, though, that included previous rate increases, trade disputes, and Brexit/EU political uncertainty, the market chose to read between the lines that the Fed chair isn’t wedded to three rate hikes in 2019. Powell’s perceived dovish remarks sent bond yields and the dollar lower. The U.S. Dollar Index dropped -0.6% to 96.84, trading offered against the G7. The 2-yr yield fell three basis points to 2.80%, and the 10-yr yield slipped one basis point to 3.04%.
  • Regarding trade disputes, investors remain hopeful that some kind of agreement can be struck between the U.S. and China to forestall further protectionist trade measures. There is a burgeoning belief that Trump might aim to keep a floor of support under the stock market by striking a more conciliatory tone in his Saturday meeting with China Xi Jinping. Nevertheless, it remains a speculative trade given Trump’s tough-minded tariff position.
  • In Brexit, Sterling was bid during mid-European session following headlines that UK FinMin Hammond indicated that if the Parliament blocks May’s plan, a Norway-style deal will be considered. The movement seemed counter intuitive, rather than reflecting the market’s hope for a solution than an actual end to the Brexit drama. He also cited that a no-deal Brexit could still happen and could mean the economy will be 7.7% smaller in 15 years time than if the UK stays in the EU. PM May’s spokesperson responded by saying that the economy would continue to grow in all Brexit scenarios, as all of them are being prepared by the UK government.

STOCK MARKET WRAP  

  • The S&P 500 confidently extended weekly gains by 2.3% on Wednesday after Fed Chair Powell said he sees current interest rates “just below” neutral. That proved to be a rally point because the language Powell used early last month indicated a view that the fed funds rate was “a long way from neutral.”
  • The tech sector welcomed a solid showing from heavyweights Apple (AAPL 180.94, +6.70), Microsoft (MSFT 111.12, +3.98), Visa (V 141.38, +5.47), and MasterCard (MA 202.28, +9.30), which rose between 3.7% and 4.8%. Amazon (AMZN 1677.75, +96.33) and UnitedHealth (UNH 280.95, +9.80) jumped 6.1% and 3.6%, respectively, with the latter rising to a record close. In earnings, Salesforce (CRM 140.64, +13.10) and Burlington Stores (BURL 167.56, +19.00) jumped 10.3% and 12.8%, respectively, after releasing upbeat reports. On the other hand, Tiffany & Co (TIF 92.54, -12.41) fell -11.8% after the company missed revenue expectations due to weaker spending among Chinese tourists.

BLOCKCHAIN & CRYPTOCURRENCY NEWS  

UAE Presents Blockchain and AI Initiatives Following Annual Government Meeting

At the meeting hosted by the governmental AI and Blockchain Joint Working Group, participants addressed strategies to attract foreign investment and create necessary technological infrastructure, as well as potential challenges related to blockchain and AI adoption. The meeting announced the launch of the AI and Blockchain Guide Initiative, which aims to develop a standardized definition of the technologies on the federal level, as well as introduce the concepts of AI and its deployment to relevant entities. The National Programme for AI and Blockchain Capacity Building which was also launched at the meeting will provide university courses and scholarships in AI and blockchain technology under the purview of the Ministry of Education and offer special professional training courses across all professional levels and integrate artificial intelligence in the different stages of education.

Amazon Has Launched a New Service for Building Blockchains

Tech giant Amazon is launching a blockchain service to help clients develop blockchain networks without incurring the costs of creating their own platform. The new platform is another aspect of Amazon Web Services, Amazon’s cloud computing subsidiary which powers a large number of websites and services, including platforms like Netflix. The blockchain platform can store data on another database product in the way that managed Blockchain can replicate an immutable copy of a blockchain network activity into Amazon Quantum Ledger Database (QLDB), a fully managed ledger database which allows to easily analyze the network activity outside the network and gain insights into trends. The QLDB can be used in conjunction with Amazon’s blockchain product to “maintain a complete and verifiable history of data changes” although it is not a blockchain platform. The service is currently in preview, and If approved, they will be able to create a blockchain network, at which point they can either invite other Amazon Web Services members or “create more members in your account to simulate a multi-member network.”

SEC Chair Explains Key Upgrades Needed for Bitcoin ETF Approval

At the Consensus Invest conference on Tuesday, SEC Chairman Jay Clayton has outlined the key changes in cryptocurrency markets he needs to see before he is comfortable with a bitcoin ETF. The first issue Clayton noted was the lack of market surveillance at crypto exchanges. Market surveillance involves the use of systems that “monitor, prevent and investigate abusive and manipulative activity on the exchanges.” Stock exchanges such as the New York Stock Exchange and the Nasdaq already have these monitoring tools in place. However, “Those kinds of safeguards do not exist currently in all of the exchange venues where digital currencies trade. Clayton is also concerned with how safely crypto assets are stored, emphasizing that investors could be exposed to a risk of theft in ETFs’ underlying assets.

Cryptocurrency, Market Summary

2 min Market Summary: 28 Nov 2018

Posted on by TrackRecord Trading

NOTABLE MOVES  

USDJPY, +0.18%, $113.80.           
EURUSD, -0.27%, $1.1297.          
GBPUSD, -0.72%, $1.2742.
USDCAD, +0.35%, $1.3298.

S&P500, +0.33%, 2,682.17
Nasdaq, +0.01%, 7,082.70
Nikkei, +0.64%, 21,952.40 

CURRENCY MARKET WRAP  

  • Dollar was bid against the G7 after Fed Vice Chairman Richard Clarida said he backed gradual rate hikes with an eventual move towards neutral rates. U.S. CB Consumer Confidence at 135.7 vs expected 136.2. Consumer confidence remains at historically strong levels due in large part to positive views on the labor market. The 2-yr yield was unchanged at 2.83%, and the 10-yr yield decreased two basis points to 3.06%.
  • Euro continues to be offered over worries about German auto tariffs.
  • In Brexit, speculation that the deal won’t get approvals and comments from ex-defence secretary Sir Michael Fallon undermined Sterling. Sir Michael’s decision to come out against the deal is a blow to the prime minister who is struggling to muster support in Parliament for it. He cited, “My fear is that this deal gives us the worst of all worlds,” he said. No guarantee of smooth trade in the future and no ability to reduce the tariffs that we need to conclude trade deals with the rest of the world.”

STOCK MARKET WRAP  

  • The stock market was able to shrug off early angst caused by Trump reiterating his hard-nosed tariff stance. Trump’s comments struck concerns that his G-20 meeting with President Xi Jinping at the end of the week might not meaningfully ease trade tensions between the two countries. Trump said in a Wall Street Journal interview that it is “highly unlikely” he will refrain from raising a 10% tariff on $200 billion of Chinese goods to 25%, effective January 1. He added, too, that if China and the U.S. don’t make a deal he will move ahead with a plan to place a tariff of 10% or 25% on an additional $267 billion of imported Chinese goods, which would possibly include iPhones and laptop computers. White House economic advisor Larry Kudlow followed up with his disappointment in China talks thus far and stated that talks between Trump and President Xi will occur on Saturday evening. He added that Trump will make up his mind on the $267 billion tariff tranche at the end of the meeting.
  • Apple (AAPL 174.24, -0.38, -0.2%) never traded in positive territory after the Trump’s comments reminded investors that tariffs remain a headwind for the company. Microsoft (MSFT 107.14, +0.67, +0.6%) helped lift the heavily-weighted information technology sector (+0.2%), and chip stocks also rose, with the Philadelphia Semiconductor Index up 0.2%. General Motors (GM 36.69, -0.96) fell -2.6% after Trump tweeted he is disappointed in GM and is looking to cut all of its subsidies. Trump’s frustration stemmed from GM’s decision to close plants in Ohio, Michigan, and Maryland but not those in Mexico or China. The White House is hopeful that General Motors will make some adjustments and does not believe GM’s job layoffs will impact the overall economy.

BLOCKCHAIN & CRYPTOCURRENCY NEWS  

Fake Developer Sneaks Malicious Code into BitPay’s Copay Wallet

Allegedly, the Copay wallet from U.S.-based bitcoin payments processor BitPay has been compromised by a hacker. The malware was deployed on versions 5.0.2 through 5.1.0 of its Copay and BitPay wallet apps, and could potentially be used to capture private keys to steal bitcoin and bitcoin cash. The firm is asking users to not run or open the Copay wallet if they are using versions from 5.0.2 to 5.1.0. It has now released an updated version (5.2.0) without the malicious code for all Copay and BitPay wallet users that will be available in app stores “momentarily.” Users should first update their affected wallets (5.0.2-5.1.0) and then send all funds from affected wallets to a brand new wallet on version 5.2.0, using the Send Max feature to initiate transactions of all funds. The attack was reportedly commited by a supposed developer called Right9ctrl who took over maintenance of the NodeJS library from its author who no longer had time for the work.

Ten Blockchain, Fintech Firms Launch Association to Make ‘Code of Conduct’ for Crypto

Ten financial and tech firms have established an Association for Digital Asset Markets (ADAM) to create a “code of conduct” for the cryptocurrency sector. Among ADAM’s founding members are Mike Novogratz’s crypto merchant bank Galaxy Digital, global financial services firm BTIG, fintech firm Paxos – of recently-launched stablecoin PAX – and crypto liquidity solutions provider GSR. ADAM will focus on working with regulators to seek “comprehensive standards” for digital asset market participants which will encompass trading, custody, clearing and settlement in the sector, and to provide a framework for “ethical conduct” and “professionalism.” ADAM’s code of conduct will be established to work as a “complement” to existing laws and regulations in order to “accelerate fair and orderly digital asset markets where innovators and capital can transact with confidence.”

Bahrain Finance Training Institute Launches ‘Blockchain Academy

The Bahrain Institute of Banking and Finance (BIBF) is launching the country’s first “Blockchain Academy,” by approval of the Specific Council for Vocational Training. The training program is designed to prepare participants to earn the international qualification of Certified Blockchain Professional C|BP and was developed by the BIBF and Dubai-based training firm MyLearning Key. The C|BP Certification is consisted of three competency areas in blockchain technology; development, implementation, and strategy. The new initiative aims to support businesses and organizations as they adopt new technologies like blockchain.

Charts of the Week, The Week Ahead

Trade Opportunities: Hang Seng Stock Index, AUDUSD

Posted on by TrackRecord Trading

Hang Seng Index (HSI) Daily Candlesticks & Ichimoku Chart
The Hang Seng Stock Index (Hong Kong) is trading better recently. It is currently testing the daily ichimoku cloud, and will be a strong positive sign should it manage a close above the cloud. Is this just shortcovering ahead of the meeting between Trump and Xi at the G20 Summit or is it something more?

AUD/USD Daily Candlesticks & Ichimoku Chart
AUD/USD attempting to establish itself above the daily Ichimoku cloud again. Will it succeed this time?

Vee, our Founder/CIO highlights patterns/formations on selected chart(s) every week which may have the potential to turn into trading opportunities. These charts are first sent out on Monday of the week to members of our weekly subscription product – “CIO’s Week Ahead Update”, which helps to filter out the noise and condense only what’s important in the markets for the week ahead.

Disclaimer: The views and opinions expressed in this material do not constitute a recommendation by TrackRecord Pte. Ltd. that any particular investment, security, transaction or investment strategy is suitable for any specific person. No part of this material may be reproduced or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without prior written permission of TrackRecord Pte. Ltd

Cryptocurrency, Market Summary

2 min Market Summary: 27 Nov 2018

Posted on by TrackRecord Trading

NOTABLE MOVES  

USDJPY, +0.52%, $113.50.
EURUSD, -0.04%, $1.1333.
GBPUSD, -0.00%, $1.2813.
USDCAD, +0.20%, $1.3254.
NZDUSD, +0.04%, $0.6775.

S&P500, +1.55%, 2,673.45
Nasdaq, +2.06%, 7,081.85
Nikkei, +0.69%, 21,795.28

CURRENCY MARKET WRAP  

  • There were no U.S. prints on Monday. The 2-yr yield added one basis point to 2.83%, and the 10-yr yield added two basis points to 3.07%. Also, the U.S. Dollar Index rose 0.1% to 97.05.
  • German Ifo Business Climate at 102.0 vs expected 102.3. Italy’s MIB showed relative strength (+2.8%) amid reports that Italian officials indicated a willingness to lower next year’s deficit target of 2.4%. However, this report follows weekend remarks from Italy’s Deputy Prime Minister Matteo Salvini, who said he would bring down the government if the deficit target is changed.
  • EU leaders have approved the Brexit Withdrawal agreement, Sterling ended the day unchanged because investors know that the big challenge now is Parliament. Prime Minister May needs 320 votes to pass the Brexit deal and there are 650 seats in Parliament. She should have at least 316 conservative votes but there’s almost no chance that she’ll get any of the 10 DUP votes so her job will be to convince members of the opposition Labour party to support her deal.
  • N.Z. Retail Sales q/q at 0.0% vs expected 1.0%. Core Retail Sales q/q at 0.4% vs expected 1.5%.

STOCK MARKET WRAP  

  • Amazon (AMZN 1581.33, +79.27, +5.3%) and retail stocks led the broad-based advance from what many considered to be short-term oversold conditions. Reports of record online Black Friday sales and encouraging forecasts for Cyber Monday sales contributed to the upbeat investor sentiment within the top-performing consumer discretionary sector (+2.6%). Adobe Analytics reported that online Black Friday sales surged 23.6% to a record $6.22 billion and expected a 17.6% year-over-year growth of $7.8 billion on Cyber Monday.
  • The S&P SPDR Retail ETF (XRT 45.75, +0.87) rose 2.0%. Facebook (FB 136.38, +4.65, +3.5%), Alphabet (GOOG 1048.62, +24.74, +2.4%), Netflix (NFLX 261.43, +2.61, +1.0%), and Apple (AAPL 174.62, +2.33, +1.4%) all sported healthy gains. Apple was able to shrug off midday losses to finish near its session high.
  • In other corporate news, General Motors (GM 37.65, +1.72, +4.8%) announced additional restructuring plans that will result in a 15% reduction of its salaried staff and possibly the closure of five of its North American plants. Trump said to reporters that he told GM executives he is unhappy with the job cuts and is hopeful that “something else will replace the GM plants in Ohio”.

BLOCKCHAIN & CRYPTOCURRENCY NEWS  

Ohio Becomes First US State to Allow Taxes to Be Paid in Bitcoin

Companies in the U.S. state Ohio will be able to pay a variety of taxes, from tobacco sales tax to employee withholding tax to public utilities tax with the cryptocurrency, starting this week. The filing process involves three steps: First, businesses will have to register with the Office of the Ohio Treasurer through a dedicated portal called OhioCrypto.com. They then need to enter tax details such as payment amount and tax period, and, finally, the due amount is paid in bitcoin using a “compatible” crypto wallet. Compatible wallets include the Bitcoin Core client, Mycelium and breadwallet, and others that are compatible with the Bitcoin Payment Protocol. All tax payments will be processed by Atlanta-based bitcoin payments processor BitPay, which will convert bitcoins to dollars for the Treasurer’s office. The facility is available only for businesses but it is expected to be made available to individuals in the future.

A Blockchain Ranking Machine to Select Promising Science-Focused Venture Projects

A startup called ScientificCoin, based in California, has developed an algorithm for a bias-free, decentralized evaluation of projects so that investors can fund venture projects in science and other areas including initial coin offerings (ICOs) with more confidence. There’s the promise for investors, of peace of mind and more insurance against scams. For recipients, if they are able to defend their projects against the steel-cold logic of the machine, there is the promise of funding to implement their ideas. For ScientificCoin tokenholders, five percent of all funds raised using this platform is distributed between tokenholders of its respective coin, as a fee. The ranking machine takes into account more than 70 major characteristics divided into five sections. The rating is determined in accordance with the correlational regression model based on statistical analysis of the projects over a nine-month period.

Blockchain Capital Leads $12.75 Mln Funding Round for US-Based Securities Tokens Startup

An American securities tokens startup has closed a Series A funding round led by Blockchain Capital that raised $12.75 million. Securitize, a technology platform that enables the issuances of digital securities or security tokens of any asset, has closed the strategic funding round ahead of the company’s plans to launch a Digital Security Offering (DSO) in 2019. The round also included participation from Coinbase Ventures, Global Brain, NXTP, OK Blockchain Capital, and Xpring at Ripple. Brad Stephens, Blockchain Capital’s co-founder and managing partner, who led the $12.75 million strategic funding round for the digital securities startup, will join Securitize’s Board of Directors. He noted that Securitize’s real-time compliance solution solved a critical need for our BCAP security token, which a token based on the Ethereum (ETH) blockchain and launched in April 2017 through an Initial Coin Offering (ICO). Other “strategic investors” in Securitize include Donna Redel, the World Economic Forum’s former Managing Director and blockchain professor, and John Pfeffer, formerly a partner at global investment firm KKR.

 

Cryptocurrency, Market Summary

2 min Market Summary: 26 Nov 2018

Posted on by TrackRecord Trading

NOTABLE MOVES  

USDJPY, +0.01%, $112.95.
EURUSD, -0.59%, $1.1341.
GBPUSD, -0.50%, $1.2814.
USDCAD, +0.36%, $1.3237.

S&P500, -0.66%, 2,632.56
Nasdaq, -0.48%, 6,938.98
Nikkei (Bank Holiday)

CURRENCY MARKET WRAP  

  • There were no notable U.S. prints on Friday. The 2-yr yield added one basis point to 2.83%, while the 10-yr yield shed one basis point to 3.05%. Dollar remained bid on Friday amid European political woes and risk-aversion in capital markets.
  • Tensions between Italy and the EU Commission continued weighing on the Euro. Italian PM Di Maio reiterated that the country is not willing to make changes to key reforms within the budget. November Markit indexes indicated that the region’s growth continues shrinking. German Flash Services PMI at 53.3 vs expected 54.6.German Flash Manufacturing PMI at 51.6 vs expected 52.3. E.U. Flash Manufacturing PMI at 51.5 vs expected 52.0. Flash Services PMI at 53.1 vs expected 53.6.
  • Sterling was offered on Friday ahead of a busy Brexit weekend in Brussels. Over the weekend, EU leaders have approved an agreement on the UK’s withdrawal and future relations – insisting it is the “best and only deal possible”. The UK Parliament is expected to vote on the deal on 12 December, but its approval is far from guaranteed. Labour, the Lib Dems, the SNP, the DUP and many Conservatives MPs are set to vote against it. May has appealed to the public to get behind the agreement – saying that although it involved compromises, it was a “good deal that unlocks a bright future for the UK”.
  • Canadian inflation also ticked higher, but BoC seen keeping rates steady. Statistics Canada said the annual inflation rate edged up to 2.4% from 2.2% in September. Analysts in a Reuters poll had forecasted it would stay at 2.2%. Canadian CPI m/m at 0.3% vs expected 0.1%. Core Retail Sales m/m at 0.1% vs expected 0.3%.
  • WTI crude fell -6.1% to $51.28/bbl, extending its decline to -33.3% from its October 3 high. A Wall Street Journal report indicated that Saudi Arabia and OPEC are considering a disguised production cut to satisfy  Trump. Specifically, OPEC would retain current output targets, first set in 2016, which would imply a production pullback because Saudi Arabia is allegedly overproducing by nearly 1 million barrels a day.

STOCK MARKET WRAP  

  • The S&P 500 lost -0.66% on Friday in what was a shortened, low-volume trading day on Wall Street. Friday’s volatile session extended the benchmark index’s weekly losses to -3.8%. FAANG stocks also struggled on Friday with Facebook (FB 131.73, -3.09, -2.3%) and Apple (AAPL 172.29, -4.49, -2.5%) leading the retreat. Apple reportedly resumed production of its 2017 iPhone X amid shrinking demand for its 2018 iPhone X Max model, according to IBN; and has also reportedly lowered the price of its iPhone XR in Japan to increase sales, according to the WSJ. Facebook and Apple shares dropped over -5.0% and 10.0%, respectively, last week.

BLOCKCHAIN & CRYPTOCURRENCY NEWS  

The SEC’s Recent Rulings Are More About Exchanges Than ICOs

Last week the SEC reached settlements with AirFox and Paragon in its first cases brought purely for lack of registration, rather than for fraudulent activity. In characteristic overreaction, the market seemed to assume that ICOs were now “over.” As a result, an SEC director revealed that the agency plans to release “plain English” guidance for when a token is and is not a security. The SEC announced a settlement with the founder of EtherDelta, a “decentralized exchange” for ethereum-based tokens, who had been accused of knowingly breaking securities laws by neither registering the platform with the SEC nor operating under an exemption. This was the SEC’s first enforcement action against a token exchange for failing to register. In its statement, the SEC outlines what exactly is considered an “exchange,” and under what circumstances a token trading venue would be required to register.

Bitcoininfo.ru Wins Court Case Against Ban

The owner of Bitcoininfo.ru has won an appeal against a ruling to block the cryptocurrency website. A court in Saint Petersburg has decided that access should be restored and that Nikolay Tonkoshkurov should be compensated for the unlawful actions of the prosecutors and judges who presided over the case. Experts claim the decision may set a precedent in Russia, where hundreds of websites with similar content have been blocked over the past few years. In March 2018, the Saint Petersburg City Court struck down a ban on 40 other Bitcoin-related sites offering information and exchange services, but the Bitcoininfo.ru case was the first to reach the Supreme Court. This is also the first time a government institution has been ordered to pay compensation to a defendant for abusing its authority in the digital space. Bitcoininfo.ru currently redirects to the Cryptorussia.ru domain, which hosts the same content as the original website, including news about cryptocurrencies, information about the legal framework for the crypto sector and the applicable tax regime, as well as exchange rates for major digital coins in both U.S. dollars and Russian rubles.

US Dept. of Defense Research Arm to Host Permissionless Blockchain Workshop

The U.S. Defense Advanced Research Projects Agency (DARPA) will host a two-day blockchain workshop in February, according to an official request for information (RFI). DARPA, the research arm of the U.S. Department of Defense, is looking to to investigate technologies for distributed consensus. As stated in the five-page RFI released by the agency’s Information Innovation Office (I2O), “of particular interest to DARPA are so-called ‘permissionless’ distributed consensus protocols.” Permissionless systems are described in the paper as protocols “where any individual may join in the computation.” The RFI also recognizes the potential of blockchain technology for data security and storage “resilience” for the government department stating “Technologies for distributed consensus protocols have been revolutionized by their prominent role in cryptocurrency and blockchain technologies. These technologies have dramatic implications for the security and resilience of critical data storage and computation tasks, including for the Department of Defense.”

Cryptocurrency, Earnings, Market Summary

2 min Market Summary: 23 Nov 2018

Posted on by TrackRecord Trading

NOTABLE MOVES  

USDJPY, -0.06%, $112.99
EURUSD, +0.16%, $1.1403
GBPUSD, +0.78%, $1.2877
USDCAD, -0.30%, $1.3191

S&P500, (Markets closed for Thanksgiving)
Nasdaq, (Markets closed for Thanksgiving)
Nikkei, +0.65%, 21,646.55

CURRENCY MARKET WRAP  

  • There were no U.S. prints as markets were closed for Thanksgiving. Data was light as well for the G7 with no notable prints on Thursday.
  • In ECB Minutes, rate-setters acknowledged the disappointing economic data on Oct 24-25but took the view that the picture was still one of widespread economic growth and accelerating inflation. The central bank kept rates at record lows at the meeting and repeated its intention to stop adding to its 2.6 trillion euros ($2.97 trillion) of bonds at the end of the year in light of higher inflation.
  • In Brexit, PM May drafts EU’s declaration on the future bilateral relationship with the UK, in which the Union talks about “a free trade area with deep regulatory and customs cooperation.” Details on how this will done, or when were not in place. Sterling’s bid faded in the 1.2880 price zone. Scottish First Minister Nicola Sturgeon said that the Brexit deal is full of ‘unicorns’ rather than facts, and will damage the local fishing industry. Also, according to people familiar with the matter, Spain will likely vote against the current proposal amid the lack of clarity on Gibraltar. PM May spoke before the UK Parliament once again but failed to convince MPs. The next chapter on the Brexit drama will be written over the weekend.

STOCK MARKET WRAP  

  • US Markets closed for Thanksgiving.
  • Japan’s Nikkei finished up 0.65%, but banks were under pressure, with Mitsubishi UFJ 8306 down -1.43% and Sumitomo Mitsui 8316 down -0.22%. On the positive side, beer maker Sapporo Holdings 2501 popped 7.01%.
  • European stocks fell on Thursday, with oil, bank and drug stocks being offered, Euro Stoxx 50 index fell -0.86%.

BLOCKCHAIN & CRYPTOCURRENCY NEWS  

Swiss Railway Tests Blockchain Identities for Workplace Safety Boost

Swiss Federal Railways (SBB) has completed a proof-of-concept (PoC) of a blockchain-based credentials management system for workers employed at the company’s construction sites. The solution was developed by a blockchain startup Linum Labs using the open-source technology of uPort, a project started under the patronage of New York-based ethereum design studio ConsenSys. In the proof-of-concept, workers created their digital identities in the uPort app on their mobile devices, and SBB issued them certificates confirming they went through appropriate training. To enter the site, a worker would scan a QR code from the app on his or her cellphone. The app can also connect to identity systems authorized by city administrations, like Zug ID, which also uses uPort’s tech.

Singapore’s State Investment Firm Backed R3 as Part of Blockchain and AI-Focused Strategy

Temasek is a Singapore government-owned investment company, which has reported its Asia-focused portfolio to be worth around S$308 billion ($235 billion) as of spring 2018. The firm has invested in enterprise blockchain software firm and global banking consortium R3. Temasek is responding to a shifting global investment landscape by focusing in on bleeding-edge technologies such as blockchain and artificial intelligence (AI). This strategy entails the creation of “experimental pods,” set up with the express purpose of focusing on investments in blockchain technologies and AI, two areas the company considers to be “long-term” trends set to impact multiple industries globally. Alongside its R3 investment, of which the exact sum is undisclosed, Temasek is further reported to have participated in in a $600 million series C funding round in April for Chinese AI startup SenseTime.

BBVA and Santander Join EU Joint Blockchain Platform Set to Launch in 2019

Banking groups BBVA and Banco Santander have joined the E.U. International Association for Trusted Blockchain Applications (IATBA). The IATBA will launch in the first financial quarter of 2019. The main aim of the association is to develop E.U. blockchain regulation, along with preparing the launch of E.U.-wide blockchain applications. BBVA and Santander are among the first five banks invited to join IATBA. The other members of the association have not yet been disclosed. IATBA is an initiative promoted by the European Blockchain Partnership — a collaboration of 27 E.U. countries, including UK, France, Germany, Sweden, the Netherlands and Ireland. The states cooperate to establish “a European Blockchain Services Infrastructure that will support the delivery of cross-border digital public services, with the highest standards of security and privacy.

Cryptocurrency, Earnings, Market Summary

2 min Market Summary: 22 Nov 2018

Posted on by TrackRecord Trading

NOTABLE MOVES  

USDJPY, +0.23%, $113.03
EURUSD, +0.16%, $1.1389
GBPUSD, -0.09%, $1.2776
USDCAD, -0.59%, $1.3228
AUDUSD, +0.67%, $0.7262

S&P500, +0.30%, 2,649.93
Nasdaq, +0.92%, 6,972.25
Nikkei, -0.35%, 21,507.54

CURRENCY MARKET WRAP  

  • U.S. Core Durable Goods Orders m/m at 0.1% vs expected 0.4%. Durable Goods Orders m/m -4.4% vs expected -2.2%. Revised UoM Consumer Sentiment at 97.5 vs expected 98.4. U.S. Treasuries edged lower, pushing yields higher across the curve. The 2-yr yield increased three basis points to 2.82%, and the 10-yr yield added one basis point to 3.06%. In trade, U.S. Trade Representative Robert Lighthizer released a report on China’s intellectual property practices, alleging that China has not altered its “unfair, unreasonable, and market-distorting practices” that led to the imposition of tariffs.
  • U.K. Public Sector Net Borrowing at 8.0B vs expected 5.6B. In Brexit, Sterling remained under pressure because there’s a risk that the EU will cancel their special Brexit summit at the end of the month if a deal isn’t reached. German Chancellor Angela Merkel wants a deal finalized in the next 24 to 48 hours. Her EU counterparts want to add additional terms to the agreement. Spain is one of the primary concerns because they said they won’t support a Brexit deal with future trade agreements that include Gibraltar. PM May feels that Gibraltar must be included, which could be another serious political challenge to Brexit negotiations.
  • No specific data was released but Aussie and Kiwi followed the Yuan higher on reports that the PBoC may be less accommodative next year unless there is a significant slowdown in growth. The Loonie recovered as oil prices stabilized. WTI Crude rebounded 1.8% to $54.38/bbl. Crude shrugged off ongoing supply concerns that have recently pressured oil prices; on Wednesday, the U.S. Energy Information Administration reported a ninth consecutive weekly build in crude with a higher-than-expected build of 4.9 million barrels last week. Crude cut its weekly losses to -3.7% but is still roughly 30.0% lower from last month’s four-year high.

STOCK MARKET WRAP  

  • The S&P 500 found some reprieve on Wednesday with a slim gain of 0.3%, with cyclical sectors mounting a rebound effort. The benchmark index was up as much as 1.1%, but gave up most of its gains in the last hour of trading. Wednesday’s session did feature some lower-than-usual volume with U.S. markets closed on Thursday for Thanksgiving Day.
  • The battered FAANG group traded on a mixed note on Wednesday in what has been a woeful quarter for the bunch. Facebook (FB 134.82, +2.39, +1.8%), Alphabet (GOOG 1037.61, +11.85, +1.2%), and Amazon (AMZN 1516.73, +21.27, +1.4%) finished with comfortable gains, while Apple (AAPL 176.78, -0.20, -0.1%) and Netflix (NFLX 262.13, -4.85, -1.8%) finished lower.
  • Earnings were mostly positive with retailers Foot Locker (FL 52.96, +6.87, +14.91) and Gap (GPS 25.81, +1.15, +4.7%) reporting above-consensus bottom lines. Conversely, Deere (DE 141.88, +3.36, +2.4%) missed both top and bottom line expectations, but still traded higher amid an upside outlook. Deere’s worldwide sales of agriculture and turf equipment are forecast to be up about 3.0% in 2019. In other corporate news, Dow component Johnson & Johnson (JNJ 141.99, -4.46) fell -3.1% after a U.S. appeals court refused to stop generic versions of its prostate-cancer drug Zytiga from entering the market, according to Bloomberg. Of note, the company did hit an all-time high in the previous session.

BLOCKCHAIN & CRYPTOCURRENCY NEWS  

SWIFT India Partners With Fintech Firm for Blockchain Pilot

SWIFT India has partnered with fintech firm MonetaGo to pilot a distributed ledger (DLT) network designed to improve the efficiency and security of financial products. Per the announcement, the new program based on MonetaGo’s financial services network technology will be integrated through standardized SWIFT financial messages. The banks will deploy a shared distributed ledger network, that complies with industry-level governance, security and data privacy requirements in order to improve the efficiency and security of their financial products and procedures. SWIFT will digitize trade processes, while MonetaGo will provide “fraud mitigation solutions to avoid double-financing and check authenticity of e-way Bill – an electronically generated bill for the specific movement of goods with a value more than 50,000 rupees ($700).

Indian Government Expects to Finalize Crypto Bill Next Month

The Indian government has reportedly filed an affidavit with the country’s supreme court detailing its progress on cryptocurrency regulations. It is expected that the draft report will be placed before the IMC (inter-ministerial committee) by next month. Both the draft report and the bill will be circulated to IMC members and discussed at the next IMC meeting. The Indian supreme court scheduled to hear all the petitions against the ban which went into effect in July, on Sept. 11, but the hearing has been postponed to Oct. 25, when the court directed the government to submit the counter-affidavit before the next hearing is scheduled. Meanwhile, banks have closed accounts of crypto exchanges, forcing them to come up with their own solutions to provide fiat support to their customers such as through peer-to-peer systems.

Italian Securities Watchdog Orders Unauthorized Crypto Companies to Cease and Desist

The Commissione Nazionale per le Società e la Borsa (CONSOB) has ordered three crypto-related companies providing unauthorized investment services to cease and desist. The first company, a trading platform called Richmond Investing, has purportedly violated the Consolidated Law on Finance (TUF), a fundamental law governing Italian financial markets, by failing to register as a financial intermediary in the country. CryptoForce, a company specializing in Proof-of-Stake (PoS) mining, promoted a cryptocurrency dubbed “Crypton.” Brizzi was advertising CryptoForce on Facebook, while the third company, Eagle Bit Trade offered ostensibly unauthorized “trading packages” to Italian investors. In March, the Italian Ministry of Economics announced the creation of a decree that would classify the use of cryptocurrencies in the country and list service providers related to digital currencies.

Charts of the Week, Trade Opportunities

Trade Opportunities: USDJPY, NASDAQ

Posted on by TrackRecord Trading

USD/JPY Daily Candlesticks & Ichimoku Chart   SHORT 
USD/JPY has broken into the daily Ichimoku cloud. Looking to sell rallies if opportunities should arise.

 

NASDAQ Composite Index (IXIC) Weekly Candlesticks & Ichimoku Chart
The NASDAQ Composite Index has started the week badly, with the selloff sending it into the weekly Ichimoku cloud. The cloud has been breached several times intra-week recently but somehow, the price has always managed to recover above the clouds.

 

Vee, our Founder/CIO highlights patterns/formations on selected chart(s) every week which may have the potential to turn into trading opportunities. These charts are first sent out on Monday of the week to members of our weekly subscription product – “CIO’s Week Ahead Update”, which helps to filter out the noise and condense only what’s important in the markets for the week ahead.

Let us know what you think in the comments below!

Disclaimer: The views and opinions expressed in this material do not constitute a recommendation by TrackRecord Pte. Ltd. that any particular investment, security, transaction or investment strategy is suitable for any specific person. No part of this material may be reproduced or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without prior written permission of TrackRecord Pte. Ltd

Cryptocurrency, Earnings, Market Summary

2 min Market Summary: 21 Nov 2018

Posted on by TrackRecord Trading

NOTABLE MOVES  

  • U.S. Building Permits inline at 1.26M. Housing Starts inline at 1.23M. U.S. Treasuries were quiet for most of the day, with the benchmark 10-yr yield decreasing one basis point to 3.05%. The U.S. Dollar Index rose 0.7% to 96.85, reversing a recent trend that knocked the index from its yearly high. USDJPY up 0.13%, $112.71.
  • There was a new bout of tension between the EU Commission and Italy over the 2019 budget. Italy refuses to reduce the planned deficit of 2.4% in its budget and Prime Minister Salvini threatened to veto the bloc’s next seven-year budget if the EU Commission insists on sanctions. The common currency was also affected by comments from ECB’s Weidmann, who said that policy normalization will take several years. Euro dropped -0.71%, $1.1372.
  • In Brexit, the no-confidence vote of PM May proved to be of little threat after Sir Graham Brady, chairman of the 1922 Committee of Tory indicated he still hasn’t received enough letters to trigger it. Subsequently, Spain’s government cited that it will oppose the draft deal if it doesn’t include clarity over Gibraltar and would like to treat it as a bilateral issue to be discussed directly with the UK. Sterling fell below the key 1.2800 figure during US trading, undermined by endless Brexit drama and a resurgent demand for Dollars. Sterling fell -0.49%, $1.2788.
  • WTI crude, which has been pressured by ongoing supply concerns, dropped -6.9% to $53.44/bbl and extended its decline to -30.5% from its October 3 high. Furthermore, oil prices were pressured on Tuesday after some speculation that Saudi Arabia might not force an oil production cut now after Trump defended the U.S.’s relationship with Saudi Arabia amid the killing of Jamal Khashoggi. Trump stated, in regards to Saudi Arabia, “They have worked closely with us and have been very responsive to my requests to keeping oil prices at reasonable levels.”
  • It’s also worth mentioning that major changes could be in store for the BoC according to Deputy Governor Wilkins who said they will be conducting a complete review of their inflation targeting mandate to see if its worth switching to another an alternative framework. USDCAD popped 1.02%, $1.3306. The commodity bloc trades weakly on Friday on the back of risk-aversion. According to the RBA minutes, the central bank believes that the next move in rates will be higher, but there’s no strong case for a near term adjustments. Aussie dropped -1.07%, $0.7217. Kiwi down -0.70%, $0.6790.
  • S&P 500 down -1.82%, 2,641.89. Nasdaq down -1.70%, 6,908.82. Nikkei down -1.09%, 21,583.12.
  • In the retail space, earnings reports from Lowe’s (LOW 86.15, -5.20, -5.7%), Kohl’s (KSS 64.45, -6.55, -9.2%), Target (TGT 69.03, -8.12, -10.5%), L Brands (LB 28.43, -6.12, -17.7%), and Ross Stores (ROST 82.64, -8.55, -9.4%) reflected ongoing concerns over gross margin pressures, elevated inventory levels, disappointing same-store sales, and included some cautious guidance. On the other hand, Best Buy (BBY 63.63, +1.33, +2.1%) and Urban Outfitters (URBN 36.58, +0.97, +2.7%) reported upbeat reports. Nevertheless, the SPDR S&P Retail ETF (XRT 44.00, -1.51) lost -3.3%. The widely-held FANG group finished off their session lows, with the exception of Apple (AAPL 176.98, -8.88), which tumbled -4.8% to enter bear market territory. Apple has now fallen -23.7% from its October 3 record close. Netflix (NFLX 266.98, -3.62, -1.3%) and Amazon (AMZN 1495.46, -16.83, -1.1%) also closed on a lower note. Conversely, Facebook(FB 132.43, +0.88, +0.7%) and Alphabet (GOOG 1025.76, +5.76, +0.6%) added modest gains to help pare the communication services sector’s (-1.3%) losses. Notable chipmaker NVIDIA (NVDA 149.08, +4.38) gained 3.0%% amid a positive tweet from Citron Research that said, “This is the first time in 2 years (NVIDIA) offers an appealing risk-reward to investors.”

BLOCKCHAIN & CRYPTOCURRENCY NEWS  

Autodesk CEO: Blockchain Can Stem Corruption in Construction Industry

Founded in 1982, Autodesk manufactures software for the construction, architecture, media, and entertainment industries. In 2018, the company’s revenue was $2.06 billion. According to American software corporation Autodesk CEO Andrew Anagnost, blockchain technology could eliminate corruption in the construction industry, as well as deliver greater trust in the field. Anagnost asserted that the company has considered blockchain as part of their future developments, saying “we just don’t have a point of view we have stated publicly,” during the fact that Autodesk purportedly has not yet introduced blockchain-powered products. Per the Financial Review, Autodesk has been working on its own non-blockchain digital “escrow” system designed to improve trust in the construction industry.

Catalan Government Considers Blockchain for Public E-Voting System

The head of the Catalan government’s citizen participation council states that the authority is considering blockchain for the community’s voting system. Earlier in October, the Generalitat of Catalonia approved a preliminary bill to establish an e-voting system for residents abroad in major elections and other voting processes in the autonomous community. The use of blockchain in the state e-voting system is still being considered, although the Generalitat has still not decided on the matter. Earlier in July, the Government of Catalonia revealed a plan for blockchain tech deployment within its public administration processes in order to improve “digital services to the public.” According to Ismael Peña-López, director of Citizen Participation of the Government of Catalonia, regardless of what technology the government decides to use in the voting system, it must instill trust.

Singapore’s Central Bank Finalizes Regulatory Framework for Crypto Payment Services

The new Payment Services Bill (PSB), submitted by MAS board member and education minister Ong Ye Kung before parliament, is set to replace two existing pieces of legislation, the Payment Systems (Oversight) Act (PS(O)A) and the Money-Changing and Remittance Businesses Act (MCRBA) in order to bring certain cryptocurrencies under its jurisdiction. In the cryptocurrency space, it is expected to affect e-wallets and digital payment tokens such as GrabPay, Bitcoin (BTC), and Ethereum (ETH). Both PS(O)A and MCRBA will be repealed when the new, streamlined PSB comes into force at the end of 2019. PSB comprises two parallel frameworks, the first being a “designation regime” that enables the central bank to name and thereby bring payment systems it considers “crucial to financial stability” under its oversight. The second entails a mandatory licensing regime for payment service providers, who will be required to apply for one of three licenses based on the nature and scope of their activities.

 

Cryptocurrency, Market Summary

2 min Market Summary: 20 Nov 2018

Posted on by TrackRecord Trading

NOTABLE MOVES  

  • There were no notable prints on Monday. Treasuries advanced amid the market sell-off, extending the recent decline in yields. The 2-yr yield lost three basis points to 2.77%, and the 10-yr yield lost two basis points to 3.06% , 19 basis points lower from its November high. Overseas, the Asia-Pacific Communications Summit concluded on Sunday without the release of a joint communique due to the ongoing trade disagreement between United States and China. Elsewhere, Chairman of Renault-Nissan-Mitsubishi Carlos Ghosn was arrested in Japan for alleged financial violations. The U.S. Dollar Index declined -0.3% to 96.21. USDJPY down -0.24%, $112.45.
  • Euro up 0.35%, $1.1454. Sterling’s risk-off in early London trading was fuelled by headlines indicating that the amount of no-confidence letters submitted were up to 40, but there was no confirmation on those beyond the 26 public backers. UK PM May warned Tories that a no-confidence vote on her will equal a no-deal Brexit. May said that removing her from her post would lead to a delay in Brexit, making talks more difficult. Sterling recovered to finish up 0.16%, $1.2856.
  • S&P 500 down -1.66%, 2,690.73. Nasdaq down -3.26%, 6,642.92. Nikkei up 0.65%, 21,821.16.
  • The S&P information technology sector (-3.8%) was the main problem on Monday. It has been prone to liquidation efforts that have aimed to reduce exposure to a crowded sector running into concerns about a cyclical slowdown, valuations, and increased regulatory scrutiny. The tech group underperforms the 11 S&P sectors in November with a monthly loss of -5.5%.
  • Apple (AAPL 185.86, -7.67, -4.0%) shares took a hit after a Wall Street Journal report indicated the company cut its production orders for all three new iPhones it launched in September. Regarding the iPhone XR, Apple reportedly slashed its production plan by up to a third of the approximately 70 million units it had asked some suppliers to produce between September and February. Apple stock has been under pressure since providing a disappointing outlook for the holiday quarter on November 1. Negative sentiment surrounding Apple trickled down to its suppliers and chip stocks in general. Suppliers Qorvo (QRVO 63.15, -3.17, -4.8%), Lumentum (LITE 39.44, -3.08, -5.0%), and Skyworks Solutions (SWKS 70.76, -2.19, -3.0%), all of which that cut their guidance this month over presumed weakened demand for iPhones, greatly underperformed.
  • Similarly, the Philadelphia Semiconductor Index posted a loss of 3.9%, in which NVIDIA (NVDA 144.70, -19.73) extended its post-earnings decline with a steep loss of -12.0%. Facebook (FB 131.55, -7.98, -5.7%), Netflix (NFLX 270.60, -15.61, -5.5%), Alphabet (GOOG 1020.00, -41.49, -3.9%), and Amazon (AMZN 1512.29, -81.12, -5.1%) also suffered notable losses, helping pull the communication services (-2.6%) and consumer discretionary (-2.7%) sectors lower. Facebook shares continued to struggle amid on-going negative publicity surrounding the social network. Zuckerberg was reportedly not happy with COO Sheryl Sandberg for the reaction to the Cambridge Analytical scandal, according to a WSJ report. Also in the report, Zuckerberg’s newly-adopted, aggressive leadership style has not fared well with key executives, some of whom have resigned. In other news, CNBC reported that China regulators approved Dow component Walt Disney’s (DIS 115.42, -0.77, -0.7%) acquisition of 21st Century Fox (FOXA 48.91, +0.75, +1.6%) on Monday. China’s unconditional approval joins conditional agreements already made from the U.S. and EU, though the deal still needs regulatory consent from several more countries.

BLOCKCHAIN & CRYPTOCURRENCY NEWS  

Korea’s largest power provider KEPCO will use blockchain and other innovative energy solutions to develop its next-generation micro grid (MG). KEPCO’s new “Open MG” will use blockchain and other technologies to improve energy infrastructure, particularly for the local hydrogen economy. It will focus on decentralization, decarbonization and digitalization. KEPCO’s Open MG will draw on an “additional fuel cell” as a power source in order to increase energy self-reliance and efficiency, and without the emission of greenhouse gases. Using international standard technology, the MG is expected to be more interoperable, thereby preventing “system bottleneck” and fragmentation in the industry. Allegedly, KEPCO intends to develop the Open MG at full-scale and create the “first” mega-wattage (MW)-scale micro grid in Korea.
Bitcoin dropped below $5,000, more precisely, fell to $4,981 for the first time in over 13 months on Monday. That’s the lowest figure since Oct. 12, 2017, and as of press time, the price has recovered somewhat to $5,048 – still signifying a decline of more than 9 percent. Many cryptocurrencies are faring worse than BTC, including the likes of ether (ETH), litecoin (LTC) and EOS, all of which are posting 24-hour losses above 10 percent. ETH fell to $155 earlier today, the lowest level since July 16, 2017, as per CoinMarketCap. Meanwhile, XRP, the second-largest cryptocurrency as per market capitalization, is reporting a 6.5 percent drop. According to data from OnChainFX, some of the biggest losses of the day include Aragon, LBRY Credits and ZClassic, all of which have seen price declines in excess of 20 percent in the past day. The bearish weekly close has likely set the tone for a drop below $5,000. In the short-run, however, BTC may defend that psychological support level, courtesy of the oversold conditions on the daily chart.
Major NGO, the Russian Authors’ Society (RAO) will launch a blockchain-based financial platform for intellectual property-secured loans. The project is at its final stages of development and is set to be launched in the first quarter of 2019. The platform intends to bring together potential intellectual property rightsholders and investors that are ready to provide loan funds. RAO’s general director Alexander Sukhotin noted that the upcoming blockchain-enabled platform will not be limited by type of intellectual property, but will include patents, musical works, and visual art. At the current stage, the company is looking for experts that to evaluate various forms of ownership.