Week 49 is best summed up as another sideways trading week as the markets await the Fed Reserve Interest Rate decision later this week. All the headlines of late are all about BitCoin. It’s astonishing how the ‘establishment’ seem to be left behind on this one. It’s not like the market to be wrong footed and BitCoin has done precisely that. Now with access to futures trading, BitCoin has joined the big boys. It’s not going away anytime soon and it’s going to take a while before the usual vampires like Goldman Sachs and co get their teeth into it. It’s an ‘animal’ of many forms at present and the normal market manipulators (big trading banks, you know the types, the ones that fiddle Libor, Forex and well… just about anything) are struggling to decide which part to grab onto. The tail? The head or just a paw or ear? Everyone wants a slice and like anything that is ‘virtual’ or ‘digital’ it’s anyones guess where it is headed. My guess is that there will be a period of trading whereby some individuals find their BitCoins have chocolate in them. One thing is sure, money is flowing in and out and it’s not currently being washed through the normal large US Banks controlling hands. It’s trading via many exchanges via many people across the globe with many being untraceable. Even HMRC are behind in terms of how to class the profits/gains. With the Bots and Algo’s in a spin it could be a while before some boffin finds a new way to calibrated them.
In the meantime, GOLD which has been around longer than man and traded for centuries and centuries is apparently under pressure due to this new cryptocurrency. Don’t believe a word of it! Utter nonsense. If there is one thing certain in this world, it’s the precious metal that is Gold. At $1250oz, it’s trading significantly lower due to Fed Rate rise fears and also lack of volatility in markets. When the main markets top off (and they will) and volatility returns, GOLD should edge higher. BitCoin has a future, but after such a good run, would you sell equities and put money into Gold at a low entry level or put it into BitCoin at all time unknown highs? Ponder that for all of a second.
December is usually a month to get news out before year end. Companies generally want to get ‘bang for the buck’ with good news releases hence better to announce these when Markets are still sober and not too punch drunk from the festive period. With the calendar showing week 52 as virtually a non starter due to holidays, companies would be wise to get good news out either this week or early next week. Any later, and it could be forgotten or missed. Thus far, some companies are getting news out there now with Hurricane Energy getting their CPR out early doors. Other stocks covered by TheShareHub such as WRES and SOLG have issued news worthy updates which should see the share prices progress higher in 2018. Other news has yet to arrive with CERP and HUM due to update the market on production levels and first Gold pour respectively. Finally, AMER is certainly a puzzle. PoO has doubled in price from lows. AMER’s production has doubled from lows. And the share price has halved from highs down 17p to 17p (previous highs 34p). Crazy stuff but that’s what happens when you have a large investor who seems intent on offloading stock in a very poor volume market. When the selling stops, AMER should move higher with ease as the business progress in 2017 is worth 34p a share and not 17p. That’s a huge valuation gap to fill but when it happens, I suspect it will happen fast. No guarantees of course.
Daily Mail and Telegraph continue to go toe to toe and it’s going to the wire. TheShareHub picks will do well to finish with minor blushes circa 10% down but anything near 20% down is more than a bloody nose. No matter how good the 130% increase was last year, it’s not nice to see a fall at anytime. PoO’s done its part yet Equities have lagged considerably and that has to change at some point in the future as it makes no sense at all. A few quarters of decent earnings and debt reductions will see many of the mid cap sector bellwethers like Tullow, Premier Oil and Enquest do well.
Note: The data on the Telegraph is incorrect but the percentage increase is fine. Since LSE change over to various currency and decimal points, data feeds have been all over the place and some providers like Interactive Investors are still struggling to get data feeds to work properly after 3 to 4 weeks of LSE changes. Not acceptable and clients should seek some kind of compensation from ii and others for not supplying the service that they advertised. If you don’t ask, you don’t get! And if you don’t get… move your business to another provider.