Thursday, November 16, 2017

Fool Me All The Time, Shame On Me

Small caps were massively bid Thursday ahead of the five IPOs on Friday. Shocking coincidence. It's become readily apparent that the Idiocracy doesn't know a Ponzi scheme when they see one...

End of cycle risk-seeking is epic across crypto-currencies, internet stocks, chinese tech stocks, and anything momentum...

Just updated today, this is the lowest active manager risk exposure since Brexit and before that the 2015/2016 meltdowns:

Risk seeking is extreme, however momentum is corrective (lower pane):

Non-cap weighted Chinese internet:

FANG stocks are not making new highs, only Amazon is at a new high:

Biotech is back-testing the trend-line

Wall Street is taking full advantage of the stampede of dumb money to continue dumping IPOs, with five more expected to begin trading Friday:

The average stock was due for a bounce and today was the day:

The fact that Bitcoin is no longer a working currency due to the asinine transaction times and fees, is now deemed to be a positive. 

Now gamblers can focus solely on bidding it up to $200k:

"I am still quite surprised that many people tend to think that Bitcoin is a currency, though at this point in time it is not a threat to our regular fiat currencies. On the other hand, a number of people seem to realize that transaction times, energy inefficiencies in Bitcoin mining and the like are some of the key challenges that prevent Bitcoin from becoming a true alternative to USD, GBP or EUR."

"Store of value
The last trait that should be found in any currency is probably the only one that fits Bitcoin the best. It is quite clear, and I have argued this numerous times, that Bitcoin has emerged as a digital peer-to-peer cash, and thus is challenging current monetary systems. Yet, over the years it has outgrown its initial purpose, and now it is more similar to a store of value, or an alternative investment. The latter two are essentially driven by speculation and hype around the cryptocurrency space in general, and Bitcoin in particular."

"We can look no further than Google search trends for Bitcoin, and compare those with the price of BTC. Put those together, and you will see nearly 1-to-1 correlation."

"It's not a ponzi scheme silly, it's a highly illiquid store of value that becomes purposely more illiquid the more people who own it"