Crypto Comeback Continues As Stocks, Bonds, Dollar Sink

Just seemed appropriate somehow...


The biggest story of the day is the resurgent rally in crypto-currencies with Ripple up 80% off yesterday's lows...


Bitcoin traded above $12,000 (up 32% off yesterday's lows), Ethereum back above $1000...


The Dow closed lower - late-day slam hit as Democrats made headlines proclaiming they had the votes to cause a govt shutdown... Trannies managed to scramble back into the green to close...


VIX continues to rise...closing at 12 today as The Dow was desperately held above 26k..


Banks were mixed with MS topping GS in market cap for the first time since 2007...


Treasury yields rose on the day, bear steepening (30Y +4bps)...the belly of the curve is worst this week so far though...


10Y broke above 2.62% intraday (pushed up at the end by Dem headlines)..


Just shy of the Dec 15th 2016 intraday highs of 2.6394%... (10Y is up 30bps since The Fed hiked rates in December)...


The Dollar Index continued the same patter for the 7th day in a row - being dumped after AsiaPac markets closed...


WTI Crude was lower (on a big draw) and RBOB was higher (on a big build?)...


Gold and silver were both down (despite a weaker dollar)...





Hammer823 Thu, 01/18/2018 - 16:02 Permalink

Pensions are being rescued. 401ks are at record highs again, just a short time after the “Great Recession” and just in time for Boomer retirement, and $12 Trillion in required tax distribution. Governments have never made more $ from Capital Gains. If you think this is a result of the most serendipitous bull market in history you are naive. It has all been planned. The US stock market HAS to go up. And it’s been manipulated to do just that. It’s integral to the success of the world economy. With the vast majority of that stock wealth concentrated in very few hands. Do you think it’s just a coincidence that every dip has been bought? Bought at the same exact times day after day since 2009? The US stock market is too big to fail. Everyone knows it. There will just be another bailout if things ever go bad again. Risk has been socialized.  It’s why everyone and their mother is scrambling over each other each day to buy ever more stock at all time highs.

1.21 jigawatts Thu, 01/18/2018 - 16:05 Permalink

The C wave in cryptos has yet to complete. 

Maybe some gains coming up but some lower lows to follow. 

This wave 4 of the C is moving so slow today - like watching paint dry.

Keltner Channel Surf Thu, 01/18/2018 - 16:07 Permalink

“Chart of FAZ”      from  "Heart of Glass"        by Blondie

Once we had QE, and it was a gas
Soon turned out, had a chart of FAZ
Seemed like the real thing, only to find
Moss + lichen, Fed & markets entwined

Once we had doves, and they started to shine
Got audaciously long, if you were so inclined
Seemed like the right move, though many declined
Mucho mistrust, jobs falling behind

In between all the endless printing we were feeling fine
Now ‘lift-off’'s so confusing, there's no peace of mind
I fear the Fed is losing it, it's just no good, teasing like they do

Once we had Taper, and bears started to mass
Soon turned out, had a chart of FAZ
Seemed like a sure thing, only to find
Even fixed shorts were kicked in the behind

Lost inside deplorable conclusions that they cannot hide
It’s all so darn amusing, can’t get off the schneid:
They caught the hedge funds snoozing, yeah

Yeah, riding highs on doves’ true brutish might

Oo-ooo, Oh        Oo-ooo, Oh

Once TLT was such a gas
Now they’re short, such a pain in the ass …

Keltner Channel Surf BlueHorseShoeLovesDT Thu, 01/18/2018 - 17:51 Permalink

I stopped at 11 after closing a nice early miners short, afraid 'shutdown' news flow would wreak havoc, then watched in horror as the afternoon traded beautifully.  Blue, the miners & juniors are the greatest thing since sliced bread, impossible to imagine anything trading better, and after a few weeks to ensure my RUT M_R techniques could port over (and they did with a few key adjustments), I'm all-in starting next week, taking every trade through 2:30 or so.  This is the year (dammit)

In reply to by BlueHorseShoeLovesDT

BlueHorseShoeLovesDT Keltner Channel Surf Thu, 01/18/2018 - 17:54 Permalink

In my opinion the Shutdown fear is a bunch of nonsense. It is just political grandstanding that doesn’t mean shit. The only thing it may have done is giving an excuse to take some profits, but I have a feeling it is going to be a head fake.



lol I covered my ibm and went long 1,000 at 161, wasn’t even paying attention, just sold at 165


gotta Love this thing

In reply to by Keltner Channel Surf

wmbz Thu, 01/18/2018 - 16:08 Permalink

 “Anything with the word 'crypt' in it is a turn-off for me”     

~T. Boone Pickens, 89. (On cryptocurrencies.)

lester1 Thu, 01/18/2018 - 16:10 Permalink

This is a dead cat bounce for Bitcoin. There's simply too much competition now in the cryptocurrency space. There's nothing special about Bitcoin anymore. 

Smart money cashed out with gains, and stupid people are still "Hodling"

espirit lester1 Thu, 01/18/2018 - 17:14 Permalink

Don't bet the farm on DCB, there's still a downward gap to be filled which be filled it must.

Problem is that for most it's not as liquid as would be preferred, thus more difficult to exit on the way down since it runs 24/7. The one thing that most experienced traders have learned is to take profits and rebalance on the way up to reduce risk if a selloff does occur.

Set your own imaginary limits and don't get greedy or you will get burned.

I do believe I'm speaking on behalf of more than a few old hands here on ZH that see this happening in realtime. and have been there before.

Sorry, that was the Stoli with crushed pineapple talking after a tooth extraction, ignore at your own peril.

Back to our regularly scheduled programming...


Disclaimer: I have no skin in this game at this time.

In reply to by lester1

GotGalt Thu, 01/18/2018 - 16:12 Permalink

Jesus H Christ but crypto had some kind of crazy rebound today.  Damnation, I really wanted to see it keep going lower and get the best pricing for the IOTA/Cardano/Stellar/RaiBlocks I wanted to buy.