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Dr. Fly

18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.

Alt-Coins Are Going Nuts to the Upside — And My First Semi Crypto Recommendation

Perhaps this is my first light recommendation in the crypto-space; but you should look at Monaco — a financial products company that permits people to use debit cards to make transaction, in addition to buying other cryptos via their app.

Clearly, I have no way to value these companies, since financials are a moot point and buyers of the ‘currency’ do not get a piece of the company, but the buying power for their products.

Of the top coins out there, here are today’s biggest movers.

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Covered Shorts: $NVDA, $BAC

The days of my swashbuckling are rounding near an end. This sort of sordid trading is for ape-faced degenerates. I’m much happier basing my investments off grander theories, one’s using mathematical formulas and data that I can chew on.

Nevertheless, I covered my NVDA short for nearly a 20 point gain and BAC for a 5% loss. Additionally, I sold my Russian short, RUSS, for breakeven.

The proceeds are in cash and a little MARA. After the new year, I am fairly certain I will cease trading in this manner, for it is for fools and vagrants.

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Hailing from the Money Laundering Capitol of the World, UBS Declares Bitcoin to be ‘The Bubble to End All Bubbles’

The Swiss banking giant is out with some unkind words for Bitcoiners, calling it “the bubble to end all bubbles”, in an absolute old man screed that would make Clint Eastwood proud.

“The bubble to end all bubbles continues. Cryptocurrencies only have value if accepted as currencies. However, they cannot be used for the most important transaction in an economy, and cryptocurrency supply can only rise and never fall (making them a poor store of value),” global chief economist Paul Donovan wrote in a post Monday. “To date, using cryptocurrencies requires (effectively) a simultaneous asset sale and purchase of goods or services.”

While I have never been a fan of the cryptos as a currency, they are an asset class and that’s the point that many are missing. While you might not be able to buy milk and eggs with BTC now, that’s sort of the bullish argument for the asset. If I wanted to, right now, I could accept payment for iBankCoin services with Bitcoin. I only opt not to because I am slothful in that regard. The BTC would auto convert to dollars and I’d get paid immediately, as opposed to normal settlements that usually take 1-5 days using PayPal or Stripe.

BTC and other cryptos have risen too much too fast; but it’s certainly fun to watch and I’ve finally come to grips with that fact: I am a fan of asset classes and enjoy seeing how people value them. Bitcoin, Ethereum are no different than stocks in this regard.

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This is a huge piece of shit — but that’s what’s moving nowadays. All of you old men are shitting your pantaloons watching the Bitcoiners make all of the money, while you’re there calculating Sharpe ratios. Meanwhile, people are getting absurdly rich off nothing.

I bought some MARA this morning, based on its chart patterns.

Inside Exodus, I’ve got a whole list of these little fuckheads that are related to cryptos. They’re moving today.

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Terrorist Attack Reported in NYC’s Port Authority

UPDATE: Terrorist identified.

At least one person is in custody after a bomb exploded in the very busy Port Authority terminal in NYC this morning. As you can see by the live footage below, people were injured and possibly a lot more than that.

MSNBC is reporting this is an ISIS attack and the man who was apprehended was wearing a device with wires sticking out.

UPDATE: The terror suspect taken into custody tried to detonate his homemade device, but it was a dud. He is alive.

UPDATE: Via Zerohedge

The suspected bomber – a 27-year-old who lived in Brooklyn – had wires attached to him and was armed with a five-inch metal pipe bomb and battery pack as he walked through the Manhattan transit hub, sources said.

Police took the man into custody.

Former NYPD Commissioner Bill Bratton told MSNBC’s “Morning Joe” that the man was inspired by ISIS and originally from Bangladesh.

There was at least one injury and the wounded was the suspect. The man, who was seriously injured, was taken to Bellevue Hospital.

Investigators briefly spoke to the man, who told them he made the explosive device at the electrical company where he works.

Update 2 : The Terrorist in NYC attack is injured and in custody. Bomb exploded prematurely. The suspect is reportedly a Muslim man from Brooklyn, east Flatbush area, Investigators are on the way to his home, for further investigations

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Morning Poppers (The Day After Edition)

Bitcoin futures were launched and the price of Bitcoins soared higher. Like stocks, this was a sell the fear; buy the news situation. What will come from the launch of futures in the weeks and months to come are elaborate schemes propped by by investment banking houses aimed at profiting from Bitcoins. I expect there will be new ETFs cropping up now and that might, in fact, hurt GBTC — due to the premium differential. Either way, having a futures market is not a good thing, in my opinion, because it motivates the biggest fucked faces the world has ever known to rig markets.

I’ve taken a more sanguine view on the cryptos in recent days. I’m not interested in buying up here, but I am interested in examining the asset class and perhaps building some tools to help people analyze them. There is definitely a vacuum to fill.

Europe is flat, as well as US futures. All of the cryptos are running higher, with Litecoin being the most energetic, +12%. The Santa Claus rally begins now, in earnest, so do not expect a gigantic market move. Instead, you should anticipate a reduction of volatility and an easy time through the New Year’s.

Here’s the morning headlines:

Vonage target raised to $12 at Needham

NXP Semi: Activist Elliot Advisors releases a letter to shareholders and a presentation making the case that it believes NXP is worth $135/share on an intrinsic standalone basis, above the $110 offered by QUALCOMM (QCOM) in its bid to acquire the Company

Waste Mgmt upgrade details — to Buy at Stifel; tgt raised to $95

Bluebirdbio target raised to $309 from $186 at Goldman

First Solar upgraded to Outperform at Robert W. Baird; tgt raised to $82; top pick in solar sector

DaVita upgraded to Buy from Neutral at Citigroup

Illinois Tool initiated with a Buy at BofA/Merrill; tgt $190

The Trade Desk upgraded to Buy from Hold at SunTrust

Freeport-McMoRan target raised to $16 at B. Riley FBR, Inc.

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Deutsche Bank Warns of Systemic Risk to Bitcoin Crash

First and foremost, the past two months I spent most of my evenings writing a book, one that many of you absolute fuckheads had requested over the past 10 years, and, thus far, have received ZERO reviews. Sure, several hundred have purchased the darn thing, and that’s all fine and good, but I want some reviews. You know damned well the book is good — because I wrote it. By the way, the paperback is out now with RARE art. It is doubtful that I will get around to writing part 3 of the series anytime soon, so enjoy the first two with my compliments in the meantime.

On the issue of Bitcoin, BTC is trading up 2,000 from last night’s lows, at $15,700. Total market cap for the crypto world is $420b, and I am definitely going to do create a market intelligence platform for cryptos, not because I love them, but because I feel they should be properly analyzed.

Here’s an absolutely old man from Germany, land of the Nazi, warning that BTC could pose a systemic risk to markets, should they crash, burn, and dissipate into nothing at all. Clearly, he doesn’t know that the future is now and that the blockchain is going to render his job absolutely obsolete. Nonetheless, there’s an important question to be asked now.

Given the run up, it’s only natural for a reversion to the mean, correct? Say cryptos ballon up yo $600 billion and then halve, would a loss of $300 billion in wealth, over a very short time period, be systemic?

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Get Ready For Sunday Night Futures, Starring Bitcoins

Are there twins more hated than the Winklevoss? In a CNBC interview, the hated twins weighed in on the Bitcoin craze, saying it wasn’t competing with dollars, but instead out of crush gold. They believe it’s ‘multi-trillion dollar asset.’

“We’ve always felt that bitcoin, given its properties, is gold 2.0 — it disrupts gold. Gold is scarce, bitcoin is actually fixed. Bitcoin is way more portable and way more divisible. At a $300 billion market cap, it’s certainly seen a lot of price appreciation, but gold is at $6 trillion and if bitcoin disrupting gold is true and it plays out … then you can see 10 to 20 times appreciation because there is a significant delta still,” Cameron Winklevoss told CNBC on Friday.

“Long term, directionally, it is a multitrillion-dollar asset — I don’t know how long it takes to get there,” he added.

“We’ve seen the bubble term thrown around and it’s just not the right way to look at this,” he said. “Social networks grow in value exponentially based on the number of users and participants. The difference between one and 100 is dramatic — 100 and a million is that much more dramatic and exciting. As more people join it gains more value.”

“Bitcoin is not competing with those other currencies. It is competing with gold. Bitcoin is the oldest, it has the first mover advantage and there’s tremendous liquidity,” he said, adding that the problem ether is trying to solve is different than bitcoin’s payment application. “I think it’s great if there are a number of cryptos.”

Meanwhile, BTC is off a little bit today to $14,666, or -7.5%, ahead of the CBOE futures that will begin trading Sunday evening. In a related note, Litecoin is higher by 15%. With over 1,300 ICOs traded, I think it’s time that someone delved into all of them and made sense of the chaos. Starting 2018, iBankCoin will take on the crypto world in earnest, not because I want to step in an invest after 10,000% gains, but because it’s a brand new asset class that is generally not explained very well. I am also thinking about applying the Exodus technical algorithms to the cryptos to see if there’s anything of value there.

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