News to Know: Bitcoin Details, Brexit Moving Forward, UVXY Drops
Good Morning Traders,
US futures are positive this morning on the back of a UK/EU Brexit deal and an extension of the debt ceiling debate for two weeks. After being pounded yesterday, the VIX stands at 9.99 with contango sitting at 13.15%. We just wish we had held our UVXY puts a bit longer. Street Insider
Brexit appears to moving forward after all, with PM May cutting a deal with the EU to usher Brittain out. The removal of a Brexit related concern is just another soothing event for markets, likely to help keep the VIX depressed. WSJ
After a wild ride yesterday, Bitcoin is selling off well below recent highs. Several exchanges listed varying prices in Bitcoin during the fantastic run-up in price, $70 million in bitcoin was announced to have been hacked and numerous stories have emerged suggesting bitcoin and alt-coins have been subject to coordinated pump and dump schemes over the past several years. Additionally, over 40% of Bitcoin is likely owned by less than 1000 people. Despite the uncertainty, futures are set to be traded in Bitcoin starting next week, ushering in a new phase and possibly normalization of cryptocurrency through a new class of investors and traders. Barrons & Bloomberg
Numerous stories have emerged suggesting the FBI and Mueller team may have been acting improperly, guided by political bias in launching their investigation into Trump. Adding fuel to the fire, the judge presiding over the Flynn case has mysteriously recused himself. ZeroHedge
Rather than watching $2620 on SPX, we must now look for new highs. In simple terms, the jobs report looks strong, Brexit is going through, the debt ceiling issue appears negotiable and the Mueller investigation is looking quite suspect. These items combined with ongoing pro-business low interest rate environment support the bulls case for new highs.