Month: May 2024

Most Talkable Assets Of The Week

🚀 NVDA – Chip powerhouse beat its fiscal first-quarter earnings 👀 AMD – The company’s new AI chip looks like a runaway hit 🚙 NIO – Will report its unaudited financial results for Q1 2024 on June 6, 2024. So far its YTD Return -47.08% 🚘TSLA – Elon Musk says Tesla can compete with China without tariffs ⬆️ HGN24.CMX – Copper Futures hit with profit-taking 💎 Notcoin, a viral Telegram game, reached 35M active users Quote of the week: “I make no attempt to forecast the market – my efforts are devoted to finding undervalued securities.” – Warren Buffett Is there anything missing? Anyway, have a great weekend everybody. submitted by /u/FXgram_ [link] [comments]

Pepperstone: The implications of an ETH spot ETF – Tactical plays for ETHUSD traders

Authored by ChrisWeston The crypto scene has its focus on the formal blessing from the SEC to allow ETH spot ETFs to trade in the US. Given we’ve now seen regulatory sign-off on the 19b-4 filling, which allows the regulator to understand the impact of change in rules and to efficiently scenario test the rollout of the spot ETF – the next stage will be the SEC signing off on applications (the S-1 form) made by the 9 ETF issuers, although that may not happen overnight. What’s important is the crypto world now sees a very high probability that an ETH spot ETF will be rolled out soon. A key question therefore for traders is exactly how much of this news is now in the price, and what is the likelihood of a “buy the rumour, sell the fact” playing out? Many are now even looking ahead at what could be the next coin to have a spot ETF launch – the front runner seems to be SOL. Using the BTC spot ETF as a guide, which was fully approved on 10 January, in the lead-up to the launch we saw a strong run-in the BTCUSD price into $49k and then a 21% correction into $38,500 over the ensuing 12 days. It was then that traders saw the upbeat aggregated daily inflows into the 10 BTC spot ETFs (ex-Grayscale) and aggressively bought back in, with BTCUSD ultimately rallying 90% to $73k. Daily inflows in all BTC cash ETFs https://preview.redd.it/nyi1c1j7gb2d1.png?width=900&format=png&auto=webp&s=33273a60e647477b586c7511d0251af84f1bfefc The possibility of that same price action playing out in ETHUSD is an obvious risk, but when everyone is expecting something like this to happen, it rarely does, or at least the retracement should be far shallower. Plus, with expectations of solid inflows from investors into the ETH spot ETF, and the understanding of how influential these inflows have been on the BTC price, this understanding may even mitigate a ‘sell on fact’ altogether. Price action portrays strong anticipation of the ETF launch Looking at the rally in ETHUSD since 20 May, with price gaining 30% and pushing 3900, we can see the market has seen the potential ETF blessing as a big positive for ETH. We can also see the outperformance of ETH through the ETHUSD/BTCUSD (top pane) or ETHUSD/SOLUSD ratio. https://preview.redd.it/m2f5e7pagb2d1.png?width=900&format=png&auto=webp&s=377b1a8736d14d1c4fe2203aed3e37c29da8af82 We can also open interest in ETF futures, across the various platforms, has been steadily rising, where the notional value of all outstanding contracts sits close to a record $15b. If we then look at funding rates charged on ETH perpetual futures these have been falling consistently since March, showing that despite the move higher in the underlying price, the leverage held by market participants is still very low – a sign that we are nowhere near the euphoria stage and that price could kick higher and traders may chase. https://preview.redd.it/j3gxjgccgb2d1.png?width=900&format=png&auto=webp&s=6e297727df94eb64d6015c76a12cdd4aee11c5c4 Choosing between the ETH and BTC spot ETF – the implications For potential investors in the new ETH spot ETF (assuming it does come) they would now have a choice. For many US financial advisors, who could look to suggest a crypto spot ETF to clients, it isn’t just a case of having BTC or ETH in the portfolio for diversification purposes – where due to its higher volatility and often low correlation with other asset classes, crypto can help spread portfolio variance. These advisors will now have to educate themselves fully on the key differences between BTC and ETH, and which is the better ETF to choose from.On one hand, ETH has a lower market cap and differing liquidity conditions, so inflows into the ETH spot ETF could have an even greater influence on the underlying price.Bitcoin does have a scarcity factor, which many would be aware of after the recent ‘halving’, but with reduced supply and good demand, this dynamic is supportive of the BTC price over time, with some saying BTC is a ‘store of value’ – a mantra I would currently dispute given its propensity to follow the S&P500 on big down days.Bitcoin is not a great medium of exchange though, and ETH is far better in this regard so the adoption thematic, as well as potential use case, are more supportive over the longer term for ETH than BTC.Either way, the market has seen how influential the BTC spot ETF has been in driving prices higher, so are ready to trade ETH should we see big inflows into the ETH spot ETF.Of course, we could feasibly see outflows from the BTC spot ETF and rotation into the ETH spot ETF and that may raise the prospect of sustained downside in the BTCUSD/ETHUSD ratio (traders can play this by going short of BTCUSD and long ETHUSD). What’s the play? But for those whose focus is trading ETHUSD in isolation, the question – assuming full sign-off from the SEC – is whether ETHUSD can power through 4000 and the March highs of 4092.55, or whether we see long positions reduced quickly and a ‘sell on fact’ playing out – I favour the former scenario, but as long as the S&P500 can stay at elevated levels, market volatility remains subdued and US bond yields don’t start to move sharply higher, then any 15% pullback on a ‘sell on fact’ should offer a compelling entry for tactical buyers. Best UK retail CFD Broker – Pepperstone. Use this link with the built-in REDDIT promo code. Switch to Pepperstone – it may be the best trade you’ll ever make submitted by /u/XGramatik [link] [comments]

UK Retail Sales (MoM – Apr)

Headline: -2.3% vs. -0.5% exp. (prior 0.0%) ex-Fuel: -2.0% vs. -0.8% exp. (prior -0.3%) submitted by /u/XGramatik [link] [comments]

What games can teach financial literacy?

I’m not a big fan of computer games and don’t know much about modern ones. From my childhood, I remember that Civilization (which is still relevant) was excellent at teaching resource management. https://preview.redd.it/g5jscm7jy72d1.png?width=487&format=png&auto=webp&s=53282c119d0ecdae23d9bff6b28263124364d750 I am better acquainted with board games. Monopoly, by today’s standards, is an example of quite poor game design, but it can still teach you something valuable: how to bargain hard and conduct cunning negotiations for the streets you need. From simple and successful games, Machi Koro can be recommended – it’s a wonderful “farm” simulator, moderately interactive, simple, and understandable even for children. You roll dice, buy buildings, and earn profits. Power Grid can probably also be classified as a good economic board game. Among the games that are closest to reality, I must mention poker (Texas Hold’em), which teaches you to make complex decisions quickly in conditions of uncertainty – and this very skill will allow you to manage money more accurately throughout your life. The fact is that in the stock market (as in poker), you can often make the wrong decision and accidentally earn money. It sounds counterintuitive (you made money!), but in reality, it’s much scarier than doing everything right and losing. After a windfall of easy money, a person develops a terrible trait: unjustified confidence in their own correctness. In the future, this can lead to disaster. At the same time, a series of correct decisions in the long term is the key to a stable financial future, even if you incur losses in the short term. Recording important decisions can be very beneficial. Imagine you are playing the role of a fortune teller and trying to guess: you took out a mortgage at 7% – what could go wrong? This game will allow you to look at your decision from the future – and it will become more balanced and correct. People also recommend Rise of Industry, Capitalism 2, Capitalism Lab, Timeflow. Any more suggestions? submitted by /u/FXgram_ [link] [comments]

Who’s behind GameStop and AMC’s crazy growth?

We’re sure you’ve heard about the crazy moves in GameStop ($GME) and AMC Entertainment ($AMC) stocks by now. In particular, $GME has soared by more than 600% this month alone, approaching its January 2021 peak of $120.75, adding $14.5 billion to its market capitalization. This puts GameStop among the 500 largest public companies in the U.S. $AMC also announced a $250 million capital increase. Over the past two days, the market value of these shares has increased to a staggering $20 billion. Let’s take a closer look: Is there really any benefit behind these companies? Hardly. The P/E ratio of Gamestop ($GME) is simply off the charts – as much as 1210. This means that in order to buy a share that generates only $1 of the company’s revenue, you need to spend $1210. For comparison, the P/E ratio of Nvidia ($NVDA) is only 34. The question arises: if everyone in the market has this information, who is investing? Are they really retail investors chasing meme stocks for quick profits? No, their share in the $GME turnover is only 7%. So who is behind this? The answer is: the largest institutional investors. These include Vanguard Group, Blackrock, State Street, Charles Schwab, and Van Eck. Currently, Vanguard and Blackrock own 8.23% ($1.27 billion) and 7.39% ($1.13 billion) of all issued shares, respectively. Accordingly, they are the ones who benefit the most from such short squeezes. https://preview.redd.it/7x34g0rrx52d1.png?width=1280&format=png&auto=webp&s=dfb749f492c9145f9100fe5fc7910ea69caa86d8 submitted by /u/dll_crypto [link] [comments]

A Loser or a Gambler?

A question that caught my eye a couple of days ago in the subreddit r/wallstreetbets keeps popping into my head: “Why does loss of potential gains hurt worse than actual loss?” https://preview.redd.it/0dyyu50kz02d1.png?width=825&format=png&auto=webp&s=efcf0e975e5de59946c569f92a0b3a54dc12651c And indeed, why is that? Two responses from Redditors particularly stood out: u/VisualMod believes: Losers always whine about ‘what if’. u/YakPuzzleheaded1957 wrote: This is the gambler’s mindset. The thrill of winning is greater than the pain of losing. It’s the reason why so many regards diamond hand their gains right down to 0. Many could have retired as millionaires, but keep chasing that next win. So, which is it? Loser or gambler? Or maybe the choice isn’t limited to these options or depends on the generation? For instance, in circles of our forty-somethings (who are not always losers and/or avid gamblers), the persistent feeling of anxiety and the fear of missing out on something is often discussed. F*cking FOMO is killing us. That very feeling you get when everybody is cashing out another Bitcoin for $69K, and you haven’t even got a crypto wallet. Or the one you get when your friends are joining Reddit IPO buying stocks, and you do not have a trading account. I don’t have an answer on how to get rid of it, just a warning: anxiety about missing out on an opportunity only gets in the way of rational decisions. submitted by /u/FXgram_ [link] [comments]