Notable Moves: Copper, Bitcoins, Record Highs in Nasdaq — And a New Fly Buy

I was hearing a discussion on Bloomberg this morning about China and how the trade war is hurting them a lot more than us and how copper has fallen hard since the halcyon days of last year. As such, some people believe they will no longer attempt to deleverage their over-burdened balance sheet, since end user demand is now weakened. Ergo, they might apply their massive current reserves towards stimulus.

The obvious winner in new Chinese ghost cities are construction plays, and of course copper — which is seeing a dramatic rise today.

BTC is higher by 6%, pushing the total market cap for cryptos above $300 billion. Just to shed some light on what the number means, it was in excess of $800 billion in late 2017. In other words, we are now trading in a post-apocalyptic world for the alt-coin sector. Think about Nasdaq circa 2009 and how Bernanke bailed out the indices and helped put in a bottom. Now imagine Bitcoin and all of the other alt-coins, decimated, trying to gain steam. But there isn’t a good Dr. to help their plight, only nefarious money launderers and criminals, venture capitalists, and opportunists, who seek to manipulate the asset class for fast gains. This is going to be a very long road to hoe.

Nevertheless, in light of the feverish new highs in the Nasdaq and resurgence of Bitcoin, I took a shot at the favored blockchain play on the Nasdaq, and purchased OSTK. As always, stops will be in place — but I think this could gain some momentum, especially if the ICO sector can follow Bitcoin to the promise land — although, admittedly, I am skeptical.

Markets are weak, internally, with breadth under 50%, so be careful about buying into a reversal.