One Man’s Opinion: Why Decentralized Trade On The Blockchain Is The Future

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By ZeroHedge

 Thanks to the buzz surrounding Bitcoin and blockchain, decentralization as an approach to services is now also being brought to mainstream discussions.

Bitcoin was built as a decentralized currency in the aftermath of the great recession. It was a reaction to the control centralized authorities such as banks have over people’s financial activities. When banks failed, so did the people who entrusted these institutions with their money. Today, Bitcoin continues to reach all-time highs in price. Its value is determined largely by the market and not by some central bank.

If bitcoin can disrupt the current model of currencies, then decentralization should also be applicable to other financial activities such as trade. In the context of trade, marketplaces and exchanges are also mainly controlled by centralized authorities. These companies act as intermediaries connecting buyers and sellers. Parties are allowed to exchange money and goods as long as they follow these companies’ terms and conditions.

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ETFs On The Cutline – Updated Through 11/24/2017

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Below please find the latest High Volume ETFs Cutline report, which shows how far above or below their respective long-term trend lines (39 week SMA) my currently tracked ETFs are positioned.

This report covers the HV ETF Master List from Thursday’s StatSheet and includes 366 High Volume ETFs ETFs, defined as those with an average daily volume of more than $5 million, of which currently 266 (last week 263) are hovering in bullish territory. The yellow line separates those ETFs that are positioned above their trend line (%M/A) from those that have dropped below it.

Take a look:

The HV ETF Master Cutline Report            

In case you are not familiar with some of the terminology used in the reports, please read the Glossary of Terms.

If you missed the original post about the Cutline approach, you can read it here.

ETF Tracker Newsletter For November 24, 2017

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ETF Tracker StatSheet

https://theetfbully.com/2017/11/weekly-statsheet-etf-tracker-newsletter-updated-11222017/

CLOSING AT NEW ALL-TIME HIGHS

[Chart courtesy of MarketWatch.com]
  1. Moving the markets

Despite this being a Holiday shortened week, 2 of the 3 major indexes (S&P 500 and Nasdaq) managed to close at new records with the S&P booking a gain of +0.9% over the past 4 sessions. Retailers were obviously in focus, but the retail ETF (XRT) closed down -0.43%, however, we will have to wait and see if Black Friday really turns into the game changer the industry has been hoping for.

Across the ETF space, we saw predominantly gains but also some losses. Closing solidly in the green were Semiconductors (SMH +0.83%), followed by International Equities (SCHF +0.73%) and International SmallCaps (SCHC +0.49%). On the downside, we saw Emerging Markets (SCHE -0.28%) and Transportations (IYT -0.05%).

Interest rates were mixed but the 10-year bond yield rose 2 basis points to end the week at 2.34%. Oil rallied, gold pulled back and the US Dollar (UUP) took another dive and gapped down -0.45% to lows last seen in September.

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Weekly StatSheet For The ETF Tracker Newsletter – Updated Through 11/22/2017

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ETF Data updated through Wednesday, November 22, 2017

Methodology/Use of this StatSheet:

  1. From the universe of over 1,800 ETFs, I have selected only those with a trading volume of over $5 million per day (HV ETFs), so that liquidity and a small bid/ask spread are assured.
  2. Trend Tracking Indexes (TTIs)

Buy or Sell decisions for Domestic and International ETFs (section 1 and 2), are made based on the respective TTI and its position either above or below its long-term M/A (Moving Average). A crossing of the trend line from below accompanied by some staying power above constitutes a “Buy” signal. Conversely, a clear break below the line constitutes a “Sell” signal. Additionally, I use a 7.5% trailing stop loss on all positions in these categories to control downside risk.

  1. All other investment arenas do not have a TTI and should be traded based on the position of the individual ETF relative to its own respective trend line (%M/A). That’s why those signals are referred to as a “Selective Buy.” In other words, if an ETF crosses its own trendline to the upside, a “Buy” signal is generated. Since these areas tend to be more volatile, I recommend a wider trailing sell stop of 7.5% -10% depending on your risk tolerance.

If you are unfamiliar with some of the terminology, please see Glossary of Terms and new subscriber information in section 9.

                           

  1. DOMESTIC EQUITY ETFs: BUY — since 4/4/2016

Click on chart to enlarge

Our main directional indicator, the Domestic Trend Tracking Index (TTI-green line in the above chart) is positioned above its long-term trend line (red) by +3.41% after having generated a new Domestic Buy signal effective 4/4/2016 as posted.

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A Slow Pre-Holiday Session; Dollar Dumps And Gold Jumps

Ulli Market Commentary Contact

[Chart courtesy of MarketWatch.com]
  1. Moving the markets

The major indexes presented a mixed picture with the Dow and S&P 500 slightly dipping while the Nasdaq managed to eke out another record—although a tiny one. The Fed minutes surprised traders in that they were very dovish (lower rates) ignoring inflation concerns with some officials opposing near-term rate hikes. That came as a surprise as a December increase was a foregone conclusion. Now we’ll have to wait and see if that will be reversed…

The more immediate result was that gold jumped and is again approaching its $1,300 glass ceiling. With the dovish stance of the Fed, the US dollar (UUP) dumped -0.78%, violating its 50-day M/A to the downside; it had its worst showing since early September. Interest rates dropped allowing the 20-year bond ETF (TLT) to rally +0.32% and reaching a level last seen 2 months ago.

In ETF space, we saw a mixed picture with winners and losers sharing center stage. International SmallCaps (SCHC) were in the limelight with a +0.49% gain followed by International Equities (SCHF) with a decent showing of +0.32%. On the downside, Semiconductors (SMH) gave back some of their huge YTD profits (-0.65%) while the Financials surrendered -0.49%.

This Friday, the markets will have an abbreviated session. In the meantime, I wish you a Happy Thanksgiving Holiday.

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Squeezing The Shorts: Major Indexes Advance Deeper Into Record Territory

Ulli Market Commentary Contact

[Chart courtesy of MarketWatch.com] 

  1. Moving the markets

Never mind the political crisis in Germany. European equities started the day rallying sharply and then handed the baton to the US giving domestic stocks the opportunity to run towards the finish line, which they did assisted by the VIX, which got hammered to 9 (from its recent high of 12). That allowed the major indexes to score another win for the record books. The S&P 500 managed to kiss the 2,600 level for the first time and closed a tad below it.

The “most shorted stocks” had quite a run the past week as they soared over 6%, which was biggest squeeze since December 2016. Our ETF portfolios benefited from all this action and we closed solidly in the green again. Leading the charge with gains of over 1% were Emerging Markets (SCHE +1.36%), Aerospace & Defense (ITA +1.10%), Semiconductors (SMH +1.02%) and Transportations (IYT +1.01%). Low man on the totem pole was the financial sector (XLF) with +0.30%.

Interest rates were steady with the yield on the 10-year bond dropping 1 basis point to 2.36%. The High Yield sector (HYG), which was embroiled in a sharp sell off a few sessions ago, calmed down and rebounded another +0.18%. After gold’s massive sell-off yesterday, the yellow metal managed a small come back at the tune of +0.50%. The US Dollar (UUP) traded in a tight range again and lost a tiny -0.12%.

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