Wednesday, December 18, 2013

Bitcoin Will Crash To $10 By Mid-2014

In Bitcoin World, a week can be the equivalent of a decade.

At the start of December, Bitcoin topped out at over $1,200 as e-currency evangelists trumpeted the endless possibilities to be unleashed, comparing it to the breakthroughs not achieved since the start of the internet revolution.  Bitcoiners claimed market disruption would bring credit card companies and payment platforms such as Western Union to their knees.  Some even claimed that Bitcoin would supplant the U.S. dollar as the new global reserve currency.  Adding more helium to the story, the Winklevoss twins of Facebook fame, not being shy about talking up their own book, predicted prices would rise to a staggering $40,000 per coin.  (more)

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Goldman Sachs Group Inc (NYSE: GS)

The Goldman Sachs Group, Inc. provides investment banking, securities, and investment management services, as well as financial services to corporations, financial institutions, governments, and high-net-worth individuals worldwide. Its Investment Banking segment offers financial advisory services. The company’s Institutional Client Services segment provides client execution services. This segment also engages in securities services business providing financing, securities lending, and other brokerage services to institutional clients, including hedge funds, mutual funds, pension funds, and foundations. Its Investing and Lending segment originates longer-term loans; and invests in debt securities, loans, public and private equity securities, real estate, consolidated investment entities, distressed assets, currencies, commodities, and power generation facilities. The company’s Investment Management segment provides investment products and services, as well as offers wealth advisory services, including portfolio management and financial counseling, and brokerage and other transaction services.
To review Goldman’s stock, please take a look at the 1-year chart of GS (The Goldman Sachs Group, Inc.) below with my added notations:
1-year chart of GS (The Goldman Sachs Group, Inc.)
GS has formed a solid resistance at $170 (red), which would also be a 52-week high breakout if the stock could manage to break above it. In addition, the stock has been climbing a trendline of support (blue). These two levels combined have GS sandwiched within a common chart pattern known as an ascending triangle. At some point, the stock will eventually have to break one of those two levels.

The Tale of the Tape: GS has an up trending support and a 52-week resistance level to watch. A long trade could be made on a close above the $170. A break below the up trending support could be an opportunity to enter a short trade.
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This is What You Can Expect in 2014

With a banner 2013 nearly in the books, it’s time to start looking ahead to 2014.

Certain things on Wall Street are predictable. But every year brings a new set of surprises that few investors saw coming.

For instance, who saw stocks achieving their best return since the Clinton administration in a year plagued by a government shutdown and an unemployment rate that remains above 7%?

Trying to predict what will happen next can be an act in futility. No one knows for sure — and they’re lying if they say they do.  (more)

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Twitter headed to $100 a share by 2015?

Not even two months old yet and shares of Twitter are on a roll. More than doubling from the $26 IPO pricing in early November, and soaring 50% just since Thanksgiving.

At present, the newly public micro blogging site is now worth $30 billion, which not only puts it on par with more established firms such as General Mills or Travelers, but is also scaring analysts, two of which downgraded the stock on Monday.

While some are taking money off the table Joe Fahmy, managing director at Zor Capital, is preparing for the next big move, and sees the stock at $100, maybe by this time next year.  (more)

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If You Think the U.S. Looks Bad, Take a Look at This

Tomorrow, we should know which way the world is headed.
That's when the Federal Open Market Committee (FOMC) is going to answer some important questions.
What will the Fed do about its quantitative easing program? Will it taper back on the $85 billion-per-month money pump, starting this month? Will it wait until March? Will it extend quantitative easing forever?
The decision is likely to spur some volatility in the U.S. stock market. Traders are nervously awaiting the outcome.
Meanwhile, foreign investors aren't sticking around to find out.
Earlier this month, we looked at the precarious condition of the S&P 500. The chart shows the index breaking down from a bearish rising-wedge pattern. It projects a move at least as low as 1,750 and possibly all the way down to 1,650.
As it turns out, the world looks just as bad.  (more)
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