We’ve had a nice run in the market. However, and I am chagrined to report this, it seems that all of the speculative fervor is now domiciled in the burgeoning crypto souvenir market — where toys are being affixed valuations in the millions — without even the semblance of a business model. They’re pranks, really — idle speculation without regards for financial standards.
Perusing the Bitcoin forums, I can comfortably say that upwards of 75% of the people buying and selling these pranks are financially retarded — without the slightest clue on matters of finance. They proudly bathe in their own ignorance and eschew anyone who disagrees with their plan for world domination.
All that aside, it appears the market has slinked back into a risk off mode. You wouldn’t notice it on the surface — but my financial tools run deep.
Having discovered this, it’s important to note that the utility sector is now overbought — according to Exodus.
There are two ways to view this information.
1. The market is simply digesting recent gains and fixing to move higher next week.
2. We’re entering a slow phase in the season, whereby utilities, bonds and other risk off assets outperform stocks.
Based upon recent history, over the past 12 months, this move in the utilities should halt soon. I’m assuming equities would then retake the mantle and rip higher again.
Tomorrow I will be publishing fresh picks in Exodus, something I do each and every Friday. I undertake a full portfolio overhaul, based solely upon a systematic strategy, using the Exodus AI.
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How about #3: The market is realizing the FED will keep on hiking interest rates until the market breaks so Trump could be blamed.
NASDAQs and FANGs about to go range bound. I took some profits today and deployed them to small caps. The Russell appears to be entering a mark-up phase.