Web Statistics The Sentiment Trader

Tuesday, 19 June 2018

Billionaire investor Jim Mellon Sharp sell-off in US stocks is the start of a very major correction


Billionaire investor Jim Mellon Sharp sell-off in US stocks is the start of a very major correction

"Billionaire investor Jim Mellon Sharp sell-off in US stocks is the start of a very major correction" 

in the news Billionaire investor Jim Mellon Sharp sell-off in US stocks is the start of a very major correction? What this all about..... See below. 

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Freshly announced trade tariffs from the White House may be sending stocks into a tailspin, but a market correction is inevitable even without them, billionaire investor Jim Mellon 

The trade war worries are "certainly having an effect on the market, but the market is reacting because it's already far too expensive," Mellon said. "The U.S. is selling at 32 times cyclically adjusted price-to-earnings (PE) ratio, which is an all-time high. Surely it's time for a major correction anyway."

Mellon is not alone in suggesting that today's stock market is the most overvalued on record — more so than in 1929, 2000 and 2007.

The chairman of asset management fund Burnbrae Group also pointed to over-complacency in markets and disproportionate buying of what he considered to be highly-inflated assets like tech stocks.

And according to the investing mogul, the trade fears are just an excuse for market players who were already looking to sell.

"There has been far too much complacency, far too many buybacks by corporations of their stock which have supported the market, far too much concentration of ownership, particularly in tech stocks in the U.S. And it's time for a very major correction, which is I think what we're embarking on."

Tuesday looks set to be a very rough day for stocks, with the Dow Jones and S&P 500 indexes at risk of losing the majority of their June gains at the open. The S&P has been down for three of the past four days. The Dow has fallen for the past five trading days — and the last time it fell for six straight days was in March 2017.


 This is quite interesting. 


Billionaire investor Jim Mellon Sharp sell-off in US stocks is the start of a very major correction



The sell-off comes as the Donald Trump administration asks the U.S. Trade Representative to identify $200 billion worth of Chinese goods for additional tariffs of 10 percent. This would be in addition to a 25 percent tariff on $50 billion of Chinese products announced Friday, to which China responded with a 25 percent tariff on $34 billion of U.S. goods.

All major European and Asian indexes were lower, with the latter particularly hard-hit — China's Shanghai Composite was down nearly 4 percent, Hong Kong's Hang Seng down nearly 3 percent, and the technology-heavy Shenzhen Composite fell a striking 5.77 percent.

Pointing to the building sell-off, Mellon's outlook was not optimistic. "We've seen in last few days the Dow's gone down, there have been sideways moves, we're almost flat on the year — this is the beginning of a serious correction in my opinion."

'No universal trade war'
The investor's warning came despite his not taking stock in the idea of a trade war.

"I do not think there's going be a universal trade war, because globalization has been so good for everyone, including the U.S., and I'm sure President Trump knows that," Mellon added.

"But he is also a very good negotiator, he's shown that to be the case in the last year or so. So he may force the Chinese to do something about this ridiculous trade imbalance that they've mounted over the years."

America's trade deficit in goods with China hit a record $375 billion in 2017 and continues to widen. Between January and April of this year, China's trade surplus with the U.S. was $80.4 billion.


Still, a minority of economists see this as detrimental to the U.S. economy. American companies operating in China have pointed to unequal market access and poor intellectual property and legal protection as a much larger problem for U.S. business with Beijing


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Sunday, 17 June 2018

This Goose is Cooking - This Goose is Cooking


This Goose is Cooking

"This Goose is Cooking" 

in the news This Goose is Cooking? What this all about..... See below. 

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Sentiment Trader have been watching a particular stock. 

“Expect the unexpected”  Canada Goose says on its website where it sells $995 parkas.

The stock has recently surged by 28% to hit an all-time high above $59 a share in early morning trading, bringing its total return to 275% in the past year.


 This is quite interesting. 





A great chart so one to watch....

Investors do not really realize that a booming economy and stock market are great for companies such as Canada Goose as people who will never cross the Arctic Circle can spend up big on its clothing. That is particularly the case if its customers invested in its shares. They needed to cash in 57 of them last August to buy a parka while it only took 17 on Friday morning.

shareholders of the luxury clothing seller were a bit depressed, and did not expect  a huge surge in its RECENT online sales in the profitable quarter it reported on Friday. Analysts had warned and called for a loss the last few weeks, but that did not turn out to be true with the company raking in huge profits and sales the last few quarters, and chart is a gem.


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Thursday, 14 June 2018

SEC Says Bitcoin And Ethereum Are Not Securities - SEC Says Bitcoin And Ethereum Are Not Securities



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SEC Says Bitcoin And Ethereum Are Not Securities?



SEC Says Bitcoin And Ethereum Are Not Securities 



It was a bloody week for the markets, but at least there’s a bit of good news: an official for the Securities and Exchange Commission has publicly stated that Ether and Bitcoin should not be regulated as securities. The announcement puts to rest months of speculation about a possible ban hammer on the two largest cryptocurrencies.








Speaking at Yahoo Finance’s All Market Summit: Crypto, William Hinman, the Director of Corporate Finance for the SEC, said:

When I look at Bitcoin today, I don’t see a central third party whose efforts are key factor to determining the success of that enterprise. The network on which bitcoin functions is operational and appears to have been decentralized for some time….Moreover, putting aside the fundraising that accompanied the creation of Ether, based on my understanding of the present state of Ether, the Ethereum network, its decentralized structure, we believe that current offers and sales of Ether are not securities transactions….”

In the United States, investment contracts are adjudicated by the “Howey Test.” Invesments whose profits depend on the actions of a third party–like stock offerings–are regarded as securities, and are subject to disclosure laws.

These requirements exist for the investors’ protection, Hinman said. “The promoter is liable for misstatements. That’s an important safeguard, and that’s appropriate for many of the ICOs we see.”

However, the distinction gets blurry in the case of decentralized networks, Hinman explained. “If the network on which a token or coin is to function is no longer centralized, and the purchasers no longer have a reasonable expectation that a person or group is going to carry out a central managerial or enterprise effort, those assets might not represent an investment contract.”

Bitcoin, which was not issued in an ICO, was already regarded as a commodity rather than a security, although the statement helps to clarify the situation.

But Ethereum is complicated because of the circumstances of its ICO. Although the token currently has utility, there was some concern that its speculative nature might have caused the SEC to consider it a security. And to muddy the waters further, there was no “single” third party promoter: Ethereum was a community effort, in a way that most contemporary ICOs are not.

His words put an end to months of speculation, in which markets hinged on fears of a regulatory crackdown. The CFTC has repeatedly asked the SEC for clarification on the status of Ether.

While markets are celebrating the news, it may be too early to pop the champagne, especially if you’ve got large investments in ERC-20s. Hinman’s speech emphasized that most initial coin offerings are securities, and this stance is consistent with the signals from top SEC leadership. “Much of what I have seen in the ICO or token or ICO space, is a security offering” said SEC Chairman Jay Clayton in Atlanta yesterday. “I don’t know how much more clear I can be about it.”

Ripple, which was also distributed in a largely-centralized ICO, remains in limbo. The company behind the third-largest crypto has been accused in several class-action lawsuits of selling the XRP token as an unregistered security.

The markets saw an immediate rally, with ETH seeing a 9.29% gain and BTC rallying 4.75% at the time of writing.


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