|BitCoin and the Cryptocurrency Mania of 2017 where we now have 1165 Cryptocurrencies listed on |
NVDA is getting a nice boost from the hundreds of thousands? of Cryptocurrency miners as NVDA GPU's
can be lined up in parrall to perform the vast calculations of the ledger keeping equation solving that is the
backbone of Crytocurrency mining.
Why invest in anything else when Bitcoin goes up 15% each week, except for the bad weeks when it only goes up 5%?
too funny .... 16 months ago, investors were debating how to get any return with the a wave of global negative interest rates in progress and worsening... emerging markets getting beaten up very badly, King Dollar was on top of the hill.
and the US stock market had gone through a 2 to 3 years sideways move . various stockmarket sectors particularly the energy sector had a very massive bear market from September 2014 with prices at WTIC at 107 and collapsing all the way to $26.05 in Feb of 2016.
Today we have consumer confidence at a 13 year high and a reading that was over 100
Now bitcoin is going up exponentially, many of the main cryptocurrencies are doing the same thing
Cryptocurrency mining is a gold rush industry in 2017 and several of the chip companies, such as
AMD and NVDA are getting huge demand from the legions of cc miners.
The NVDA GPU's generate less heat and are more energy efficient helping lower electrical consumption,
1 of the main cost drivers of Cryptocurrency mining
this post has charts of the Semiconductor ETF - SMH with daily, weekly and Monthly charts.
The 20 year monthly chart is a very, very dizzying chart to behold. We have one heck of a speculative
euphoria going on... and the Bitcoin will grow large enough that when it has a major correction it will force
assets sales in other risk markets and bingo that will be the bigger market correct.... that many people
have been wonding about.
We have had a very impressive performance by the US stockmarket, especially since the November
election as DJT points out to us occasionally on his tweets. There are even other US Governmental
officials that are citing the $5.7 Trillion dollar advance in the US stock market capitalization as verification
that the administration's policies are having a tangible and positive impact on the economy.
the SMH -- the SOX ETF is super strong as is NVDA..... The SOX is probably the strongest sector in the market, depending on what time frame one uses..... the SMH has made a new momentum high compared
to the Sept peak.... so it's just en fuego...... the chips are red hot...
Here is the weekly SMH ---- it has been a rocket ship as you well know...
it is interesting to see the deterioration in the Money Flow index and especially the Chaikin Money
flow indicator. There is also a relatively minor momentum divergence on the RSI....
when the CMF went negative in 2015 the SMH did have a further sell off where it returned to it's 200 week
MA at 44.67 the week of Feb 8th 2016.
The 20 year monthly chart of the SMH shows that we are a LONG way above the 50 week MA and the 200 week MA. On a Monthly chart..... well there has been a meteoric advance in the ETF.
One thing to consider is that the assets on the balance sheet of the BOJ and the ECB..... since they both have stocks as part of their holding..... the balance sheets are increasing in value..... I could believe that
the global central banks have roughly $19 to $20 trillion dollars on their balance sheets due to the appreciation of many of the assets that they own.
Even the FED is collecting coupon interest payments on their $4.6 billion balance sheet so that amount
should be rising....
the cryptocurrencies and the ICO's the Initial Coin offerings are a wonderful liquidity builder....... there is
no doubt there is a lot of liquidity out there in Market land......
Life is good......... one would surmise.