We have been speaking for perhaps a month about the Santa Rally. Since the markets will be closed Monday (and there will be a blissfully short report up then), it is only appropriate that the Santanista guerillas be run out of town today.
Unfortunately, they took Bitcoin hostage and have killed it.
When I looked, it was under the $14,000 level. Although, hope springs eternal in the heart (and hype) of coinsters. So don’t be surprised to see a Lazarus Rally shortly. And the story about how the Bitcoin frenzy sparks Finra cryptocurrency warning.
Just how “dead” is Bitcoin?
Frankly, we don’t know. Maybe the whole idea was for it to be nothing more than a ‘test bed’ for the roll-out of a Global Currency. Thing is, if you look at this as investor, Bitcoins lack something: And underlying peg to anything of value.
I’ll round this off to make it easy on you: If we consider that the Dow is around 24,800 and a similar drop to what Bitcoin has been through were to happen, that would squash the Dow to 17,800, plus or minus a tree ornament.
I’m hear to tell you, if the Dow dropped 7,000 points in a week, there would be “…such a clatter from the rooftops….”
Still, we find it all totally amusing…and a hat tip to our reader Andy…who while not pushing an 18-wheeler around Seattle, does better talking with higher powers than 90 percent of coin and Wall St. analysts. He called the decline in the comments section a couple of days back.
For now, looks like the market will open about flat. But, financial terrorism is a curious thing. Sure, the market COULD run up more…since there’s still an upper trend channel within reach. But we’re beginning to wonder what of the damage that could be done when $88-billion worth of financial happy-juice evaporates from the market…
Don’t look now, but January just got really interesting.
Why, toss in our long book on the odds of war in Korea in February and we’ll see what kind of pullback might be ahead in our Peoplenomics.com update for subscribers tomorrow.
For this morning, just appreciate that this:
Looks to us one hell of a lot like this…
YMMV. And with a lot of history still ahead. It will be informative to see if the blockchain promoters can talk it up from here, Just in case, we’re working on a way to make “Improved Sourdough Pancakes” based on blockchain technology.
“Come on Ure, don’t be stupid!”
Why? Everyone else is acting that way…right behind it Zeus-the-Cat is planning to launch Blockchain enhanced cat food. Says it makes him feel frisky. (rim shot)
Too bad we’re not lawyers. I can hardly wait for the lawsuits which will come from people selling real estate based on BTC’s if they keep dropping. I can hear it now: “I sold you this million dollar home and how all I have is some worthless hash codes…”
Welcome to Tulip Land, kiddies. Sometimes the old fart gets things right…and we never changed our tune. Remember, there is a pendulum in human affairs that often turns into a guillotine.
Bearer of Bad News
If you have a lot of profits in the market this year, you might keep an eye on things toward the close today. Especially if BTC keeps collapsing. The Santanista Rally’s little helper,s perhaps they’re the elves so honored by the late Louis Rukeyser, will be scrambling up your chimney with profits before the day it out.
Being in cash, we will keep lacing the cocoa with peppermint schnapps and decking the halls and wondering who Holly is. All the while Warren Buffett’s hometown paper runs with “Recession warning is flashing, but investors carry on.” Well, not ALL….splash of coffee?
Further Bad News
In a Peoplenomics report a while back, we did some analysis of mass shootings in the country. The data suggested we would have another case of social outrage ala Las Vegas or Sandy Hook by the end of the year. Stories like How to Stay Alert This Holiday Season are creeping into the news cycles.
Since we are not alone in this merriment killer view, watch your six for the balance of the year. A prequel may be seen in “California manhunt under way after random shootings target 10 driver.” Statistics don’t like, only mislead…Our “shooting” forecast was right-on. We just can’t take responsibility for the aiming skills of perps.
And speaking of mass shootings, this struck us as a bit odd: “Las Vegas shooting: FBI official says info on motive may take until next October to release…” Why then? Only thing that comes to mind are congressional elections in November…
The Daily Bash
We take some interest in watching the ongoing attacks on president Trump by the sour grapes groups that still thinks Hillary would have been a better choice. Your
Take the NY Times story “Judge Dismisses Suit Against Trump Over Business Dealings.” This will no doubt drive the Trump-haters wild but the fact not emphasized in the report is?
The judge making the ruling was a democrat (Bill Clinton) appointee.
Sex in the Cities: Yet Another One?
The NY Post story “Eric Schmidt’s surprise Alphabet announcement rekindles ‘womanizing’ rumors” is worth a read.
Not that there’s anything provable involved, but we’re expecting to see the term Googlizing go viral making UrbanSurvival the go-to hot-spot of the ‘net. (Yes, you may use the term…with a link to Urban, of course…) Or, not.
Returning to Money Matters…
…’Cuz it does: Durable Goods report is just out. Picturize it this way:
But the market isn’t too excited: Futures remain flattish…sort of like my sourdough….and even more like Bitcrap, which just broke $12,600 which would be like a ….um….8,800 point Dow decline overnight, lol.
Schnapps? Nog? Well, then how about some nibbynoids…..