Dow Opens to Minor Monday Gains as US-China Trade Talks Ramp up

The Dow Jones Industrial Average opened to minor gains on Monday morning as the US stock market continued to wait to see whether renewed negotiations between the world’s two largest economies would bring an end to the US-China trade war.

Dow, S&P 500 Teeter as World’s Largest Economies Meet for Trade Talks

As of 9:32 am ET, the Dow had gained 38.27 points or 0.16 percent , while the S&P 500 added 0.08 percent to its impressive Friday run. The Nasdaq, which had been the worst performer in pre-market trading, fought its way back into the green for a 0.27 percent gain.

Dow (blue), S&P 500 (red), and Nasdaq (orange) futures mostly traded sideways ahead of Monday’s opening bell.

Those muted movements marked a severe departure from Friday’s close when all three indices punctuated the week with massive rallies. The Dow rose 746.94 points or 3.29 percent to close at 23,433.16, and the S&P 500 closed at 2,531.94 for a daily gain of 3.43 percent. The Nasdaq managed to surge even further, gaining 4.26 percent ahead of the closing bell.

In what has quickly become the “new reality” for investors, the stock market has been intensely volatile in recent weeks. Now, though, it appears that the Dow and other major indices are waiting for more details on renewed US-China trade talks to determine whether it will build on Friday’s recovery or slip back into the red.

Will US-China Trade Talks Reach a Resolution?

On Monday, Deputy US Trade Representative Jeffrey Gerrish led a delegation to China for two days of trade negotiations. The first day of talks brought an unexpected visit from Chinese Vice Premier Liu He, the country’s top economic policymaker and the direct head of the trade discussions.

The standoff between the two countries has begun to make itself known in the markets, with tech bellwether Apple forced to slash revenue guidance due to poor fundamentals in China, the first major indication that US companies stand to take severe losses if the “tariff truce” expires on March 1 without a new trade agreement.

Some analysts have speculated that a weak stock market could force US President Donald Trump’s hand, but US Trade Representative Robert Lighthizer has reportedly been adamant that he wants to prevent Trump from cutting a deal that includes “empty promises” from the Chinese.

Consequently, it seems like traders are holding their fingers off the trigger until more details from the trade talks emerge. Liu’s appearance at the talks is likely a positive sign, though it’s still not clear from reports how great a role he played in Monday’s discussions.

Top Movers

Toymaker Mattel (MAT) extended its Friday rally, rising 4.9 percent to headline the S&P 500. Micron Technology (MU) and Dollar Tree (DLTR) led the Nasdaq, with the former rising on analyst predictions that MU shares have “bottomed out” and the latter popping in response to reports that activist investment firm Starboard Value wants to shake things up at the discount retailer.

PG&E Corp (PCG) was far and away the worst performer in either the Dow, S&P 500, or Nasdaq following the opening bell, with shares plunging 22 percent on reports that the California utility company faces a minimum of $30 billion in liability for fires in 2017 and 2018, including the Camp Fire — believed to be the deadliest wildfire in California’s history.

Government Shutdown: Week 3 with No End in Sight

The partial shutdown of the US federal government has now entered its third week.

On the domestic front, the markets could soon begin to see the impact of the partial government shutdown, which has now entered its third week with no end in sight.

The Democratic-led House of Representatives and the Trump Administration continue to spar over funding for the president’s proposed border wall, with neither side caving to pressure to strike a deal to fund the nine federal departments that ran out of money on Dec. 22. An estimated 800,000 federal employees have been placed on unpaid furlough or forced to work without pay, leading to mass callouts in the Transportation Security Administration (TSA) and other high-visibility departments.

As of Monday morning, the 16-day shutdown is tied for the third-longest in US history, and the number of federal employees refusing to show up to work will only increase as people grow tired of working without pay or seek temporary employment to help cover their monthly expenses.

US Taxpayers Get Cold Shoulder from IRS amid Shutdown

A prolonged shutdown would have a much wider impact moving into tax season, as the Internal Revenue Service (IRS) is one of the agencies currently operating at limited capacity. While US taxpayers must still submit their annual tax returns and estimated quarterly tax payments, the IRS said that it may delay refund processing if filing season opens with the shutdown still in force.

More than just a frustration for US residents, delayed refund processing could deprive the economy of a regular source of consumer spending since many taxpayers use their annual refund checks to fund or place down payments on vehicles and other large purchases.

Price Charts from TradingView.


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Author: Josiah Wilmoth
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Insights on the Future of Cryptocurrency as 2018 Draws to an End

The idea of cryptocurrencies (digital currencies that are cryptographically encrypted) has been moving around in the academic circles since the 1970s. The idea, however, took on form and shape with the arrival of Bitcoin in 2009. Over the last 9 years, Bitcoin has grown on to be disruptive in the fields of monetary policy, finance, economics, and e-commerce – and it has spawned an industry of more than 2,000 coins, tokens, and altcoins in what is being generally referred to as the cryptocurrency market.

 

Future of Cryptocurrency

Interestingly, the cryptocurrency market peaked last year when the price of Bitcoin rallied more than 1400% to $19,000 and the market cap of the cryptocurrency market skyrocketed to almost $700B. However, in the year-to-date period, the trading price of Bitcoin has crashed about 53% to about $6,500 and the market cap of the crypto market has declined more than 56% to $209B.

Now, no one knows for sure how cryptocurrencies will fare going forward. There’s an ongoing debate on whether cryptocurrencies will become the future of money or whether the idea will eventually fade into oblivion if it is unable to build up a critical mass. This piece provides insights into how the fate of cryptocurrencies might pan out going forward.

Bitcoin is still the king of crypto

Bitcoin is still the biggest and most popular cryptocurrency in the market; in fact, the first interaction that most people have with cryptocurrency and blockchain technology can be traced to Bitcoin. Bitcoin currently has a dominance of about 53% of the cryptocurrency market; hence, its price often determines how other coins and the general cryptocurrency market will fare. Going forward, the realities of the market suggests that the dominance of Bitcoin might not increase but it will most likely remain unchallenged. Of course, some coins are correlated to Bitcoin and some other coins have inverse relationship with Bitcoin; nonetheless, smart cryptocurrency traders and investors will do well to pay attention to Bitcoin in formulating strategies about how they want to play other coins.

Massive changes are coming to cryptocurrency exchanges

Cryptocurrencies exchanges serve the dual function of facilitating the exchange, buying, selling, and trading of cryptocurrencies – they are a large cog in the wheel of the cryptocurrency industry. Ironically, most of the cryptocurrency exchanges in the market are centralized in nature—in sharp contrast to the decentralized nature of cryptocurrencies and blockchain technology. The centralized nature of these exchanges has made them prone to data breaches, hacks, and outright heists. Going forward, there will be growing demand for DEX Exchanges, which are decentralized in nature and maintain a public ledger of transactions through consensus.

The volatility of the markets won’t die anytime soon

Cryptocurrencies are inherently volatile, and their volatility is one of the reasons fortunes are made (and lost) in the market. One of the main reasons behind the volatility in cryptocurrencies are that they are still in the early adoption phase and there’s a huge upside potential if they could break out into the mass market. However, every bit of news about cryptocurrencies will either hint at the possibility of stunted growth (and the prices fall) or hint at the possibility of reaching the mass market (and prices rise). The volatility in the crypto markets will continue to be felt since news moves the market and the volatility won’t likely stop until there’s mass-market momentum.

Institutional investors will bring more funds and insist on sanity in the market

In the early day s of cryptocurrency, traditional financial institution and government financial agencies were quick to denounce, criticize, and vilify cryptocurrency enthusiasts. The crypto market has however proven to be incredibly adept and resilient in the face of these attacks. Now, the perception of traditional financial institutions about cryptocurrency is changing. Going forward, stakeholders can expect to see an increasing inflow of funds from Wall Street into the crypto market as crypto funds, ETFs, and other investment vehicles debut. However, the inflow of Wall Street will also require increased transparency, accountability, and regulations.


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Author: Guest Author
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Crypto Markets Rally, With Bitcoin Pushing $7K, Ethereum Close to $500

The crypto markets are on a strong upswing today, July 8, as data from Coin360 shows, with with Bitcoin (BTC) pushing the $7,000 price point. Virtually all of the top 100 coins by market cap are green on the day to press time.



The markets have seen just over a week of solid consolidation of gains first claimed in their late June rebound, and today appear to be pushing even higher resistance levels.

Bitcoin is trading around $6,752 to press time, up 3 percent over the 24-hour period, bringing its weekly gains to a solid 6-7 percent. The top cryptocurrency gained over $230 in value in the space of a little over one hour this afternoon, seeing a sharp 3.5 percent gain, before trading sideways for the rest of the day.

Top altcoin Ethereum (ETH) is trading around $489 to press time, up almost 5 percent over the past 24 hours, and almost 9 percent on the week. The coin’s intraday high peaked at $492.56, bringing it tantalizingly close to reclaiming the round $500 price point.

On CoinMarketCap’s listings, the top ten coins by market cap are all solidly in the green, with gains of within a 2 to 7 percent range.

Among the top ten cryptocurrencies, IOTA (MIOTA) is currently seeing the most growth over the past 24 hours, up almost 7 percent and trading around $1.12 to press time.

Bitcoin Cash (BCH) is up a solid 5 percent over the 24-hour period, trading around $766 to press time.

Total market capitalization of all cryptocurrencies is now at around $276.6 billion at press time, having gained a vertiginous $13 billion in the space of about two hours earlier today to reach $279.5 billion.

There has been a recent steady stream of high-profile positive news in the crypto and blockchain space that could account for today’s wave of confidence.

Two key appointments have been announced, with Facebook’s Director of Engineering of three years moving to the same position at the company’s recently established blockchain team.

Meanwhile, the Winklevoss twins’ Gemini crypto exchange has hired former New York Stock Exchange (NYSE) Chief Information Officer Robert Cornis as its first-ever Chief Technology Officer.

Bullish news for the global crypto landscape include yet further signs that the government of South Korea –– historically a major crypto market –– is considering easing its hard line stance on cryptocurrencies to establish unified rules with other governments, as well as embracing the wider blockchain space.

Positive news has also been forthcoming from some of the world’s leading crypto exchanges, with new overseas ventures and expectations of skyrocketing revenue.

Huobi, currently ranked third largest crypto exchange by daily trade volumes, opened registration on its newly created U.S.-based “strategic partner” trading platform this Friday, July 6.
On July 5, the exchange confirmed trading had opened on its new Australia-based platform, just a week after opening a London-based office targeting the European market.

Also this week, Changpeng Zhao, the CEO of the world’s top ranked crypto exchange Binance said he “expects” the company’s 2018 net profits to reach up to $1 billion.


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Author Marie Huillet 
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Bitcoin Technical Analysis: (BTC/USD) 3rd Time’s A Charm. Will BTC Break $10K Off The Back Of This Recovery?

BTC has just started to find support again after yesterday’s Upbit investigation sparked a sudden market downturn. As the panic begins to settle, the #1 cryptocurrency by market cap is taking back lost ground and already marching back up towards $9000.

Will this correction be the springboard BTC needs to break through the $10,000 mark? Or will we see a third unsuccessful test of this keystone price target as more FUD sprouts up?

Let’s have a look.

Over 4hr candles above we can see BTC enjoyed a strong opening bullish uptrend from $6,800 around April 12th to $9,700 in less than a fortnight, which carried the asset hair-raisingly close to the elusive price point.

After correcting back to the 0.5 fibonacci support, the price action began oscillating between this lower level and the upper 0.382 fib resistance before bullish support began to rally again for a second attempt.

This second run brought us right to the mark at $9,940 – just $60 shy of the $10K target!
At this stage, news coverage suddenly broke out that South Korean exchange, Upbit, was under local investigation for allegations of fraud; sending BTC’s price tumbling.

While news has yet to resurface on these developments, some Bitcoin purists on reddit and twitter are calling it a market manipulation stunt, designed to tank BTC so that whale investors can buy up cheap Bitcoin.

Anyway, *adjusts tin hat*, back to the analysis.

Since finding the bottom of this bearish decline at $8,200, BTC has already regained $300 (at the time of writing) in the last 5hrs of trading.

Buying sentiment appears to be holding out OK for Bitcoin despite the recent drama, with the 50 EMA (blue) still holding above the 500 EMA (yellow) as short-term buying momentum continues to swing in the asset’s favour. Once the 200 EMA (red) rises above the yellow line we will get a much stronger indication that bullish support is preparing to drive BTC back to long-awaited levels.

Looking at BTC’s current momentum and the ichimoku indicator below we can see a few positive signs of a retracement to $9,000 in the short-term.

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RSI has recovered from an oversold moment in the latest dip, with Bitcoin starting to climb back into the channel.

Selling candles are shrinking below the signal line on the MACD indicator, as the bulls start to reverse the recent damage.

Looking at the ichimoku indicator we can see the projected kumo cloud is expecting to resist the future price action around the 0.382 fib level where our first price target sits.
We would like to see the Tenkan-Sen (blue) line starting to curve back up towards the Kijun-Sen line (red) to give us additional confidence that the bulls were starting to break upward again.

Bitcoin (BTC) Price Targets

Our first price target will be a retracement to the 0.382 fib level at $9,460 as BTC picks up where it left off. This will give us an initial ROI of 15.37% from the $8,200 bottom.

From here we could expect anything to happen. It is Bitcoin after all.

We could see some further sideways activity inside the green channel as traders remain uncertain of BTC pumping and dumping again. We could see a confident spike drive BTC well over the $10,000 mark with a sudden rush of market FOMO. Or, we could see fresh FUD rear its ugly head in the media again and cripple Bitcoin’s progress towards the benchmark price point.

If support can continue as projected, without any interfering news or global regulations, we’d like to see a second price target reach just over the 0.236 fib level at $10,280, which would give us a promising ROI of 25.24% from the $8,200 area.


 

Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

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Author Ollie Leech
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Well these 5 Reasons Send Bitcoin to The Moon

After a rather unpleasant 3 months which saw the price of Bitcoin fall to less than half its all-time high, the gold standard of cryptocurrency has finally shown signs of reversal. The market leader is currently trading around $9400, but can Bitcoin ever reach and surpass its previous highs of $20,000? Sure it can — here’s how.

BETTER SECURITY INFRASTRUCTURE

The first thing which could send Bitcoin skyrocketing is increased adoption as a conventional currency — meaning as both a store of value and medium of exchange. However, for this to happen, more secure and user-friendly infrastructure must be built. Christian Ferri, President and CEO of BlockStar, explained:

“Assuming Bitcoin will be used as a store of value going forward (e.g. digital gold), a better security infrastructure overarching the entire crypto ecosystem will be needed for people to place trust in this new financial medium and start using it. Once this happens, more people will jump in, so a scalable infrastructure will be crucial.”

 

PRICE STABILIZATION

Ferri also noted that security enhancements alone aren’t enough to push Bitcoin into the mainstream as a viable currency. In order to act as legitimate tender, the price needs to be stabilized by protocol enhancements. He explained:

“If new enhancements are done to the protocol to allow Bitcoin (or a fork of thereof) to become a medium for everyday transactions (e.g. buy your Latte with Bitcoin), we’ll need a stability mechanism in place, on top of security and scalability mentioned above. This way that Latte won’t cost you $5 today and $50 tomorrow.”

INSTITUTIONAL INVESTORS

Thirdly, the virtual currency needs big money to come in if it ever expects to reach new highs. And by “big money,” we mean institutional investors. Paul A. Taylor, Executive Chairman of Fabric Foundation, stated:

“The influx of money from institutions putting money into crypto index funds will cause a cascading [effect], causing the herd to rush in.”

Darren Marble of CrowdfundX agrees, noting:

“At this stage, institutional investors hold the key to Bitcoin’s growth. Concerns around liquidity, security, counterparty risk and custody of assets have so far prevented institutional investors from buying Bitcoin on decentralized exchanges.”

REGULATED EXCHANGES

It’s a well-known fact that big-money investors have begun dipping their toes in Bitcoin’s waters — but for institutional investment to really come into play, regulated exchanges need to launch cryptocurrency offerings. Marble stated:

“Only when regulated exchanges — such as tZERO, Coinlist, or even NASDAQ — go live with their secondary crypto trading platforms, will the smart money begin investing directly into Bitcoin. Once this happens, the floodgates will open and we will see a new paradigm emerge; the crypto market cap will exceed $1 billion, and lead by new all-time highs of Bitcoin.”

ETFS

Finally, the last major thing which could push the daddy of cryptocurrency to new highs is the launching of cryptocurrency-related exchange-traded funds — otherwise known as ETFs. Chris Kline, co-founder and COO of BitcoinIRA.com, noted:

“Crypto-related exchange-traded funds may allow for simpler trading through brokerage accounts, which would also contribute to hiked up prices for Bitcoin and other cryptocurrencies. The writing is on the wall; with so much momentum surrounding Bitcoin and other digital currencies, in my opinion, it’s only a matter of time before prices rebound again.”

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Author: Andy James
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Here at Dollar Destruction, we endeavor to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

WTO warns over tit-for-tat trade wars

Global trade has seen its most rapid growth in six years, says the World Trade Organization’s annual analysis.

But the positive news could be put at risk by tit-for-tat tariff wars that have broken out, according to the head of the WTO, Roberto Azevedo.

Broader global tensions could also see trade suffer.

Last month, President Donald Trump unveiled plans for a 25% tariff on US steel imports from countries such as China and a 10% tariff on aluminium.

That followed an announcement earlier in the year for tariffs – import taxes – on washing machines and solar panels.

The president said that battles on trade were good and “easy to win”.

China responded by imposing its own tariffs on US goods and has complained to the WTO and threatened legal action, claiming unfair treatment.

‘Unmanageable escalation’

“The strong trade growth that we are seeing today will be vital for continued economic growth and recovery and to support job creation,” said Mr Azevedo, the WTO director-general.

“However, this important progress could be quickly undermined if governments resort to restrictive trade policies, especially in a tit-for-tat process that could lead to an unmanageable escalation.

“A cycle of retaliation is the last thing the world economy needs.”

He said that countries should show restraint and settle their differences “through dialogue” and collective action.

China has already announced retaliatory action against the US move, announcing tariffs of up to 25% on US imports such as pork, fruit, nuts and wine.

Despite growing fears over a global trade war between the world’s two largest economies, trade volume growth in 2017 hit 4.7%, the highest level since 2011.

Stronger world growth and increasing levels of consumption have driven the rise, which has helped, for example, the UK economy, where exports are valued at more than £600bn a year.

Tariff uncertainty

WTO economists said that 2018 should see trade growth expansion of about 4.4%, well above the post financial crisis average of 3%, though still below the 4.8% average seen in the 1990s.

The WTO annual trade report said risks were now “tilted to the downside” because of the uncertainty over tariff policy, which could affect business investment and that trade growth would slow to about 4% in 2019.

It also cautioned that central banks were looking to tighten monetary policy – for example, by raising interest rates – at a faster pace.

The Bank of England has already said that interest rates are set to rise more quickly than previously thought, with the next rise expected by the markets as early as next month.


 

Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

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Author Kamal Ahmed 

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