Friday, April 13, 2018

Free Webinar: Your Second Chance for the Marijuana Boom in 2018

Our trading partner legendary speculator Doug Casey invites you to take part in the FREE "Pot Stock Millionaire Webinar". This free Summit will guide us through how we can take advantage of the coming second marijuana boom.

Doug is up $1 million dollars with just ONE tiny pot stock, a 1,900% gain. And now Doug and his team have found 5 new pot stocks that will brings us those same profits.

Space is limited so Reserve Your Seat Right Here, Right Now

The Pot Stock Millionaire Summit with Doug Casey, Nick Giambruno and Justin Spittler takes place Thursday, April 26th at 8 p.m. Eastern Time. Since this is hosted on a private website you must pre register and details for access will be emailed to you.

And the cost to you? Zero....It's all FREE!

If you missed out on the first wave of marijuana investing don't miss your second chance to become a Pot Stock Millionaire in the Marijuana Bull Market of 2018. The 2018 boom is expected to be 8 times bigger than the first.

During this free Webinar we'll learn....
  •   How famed speculator Doug Casey became a marijuana millionaire with one penny pot stock
  • Why the 2018 marijuana boom will be 8 times bigger than the first… when pot stocks averaged peak gains of 24,000%
  • The only two ways to play the marijuana bull market in 2018 for the chance to turn a few hundred dollars into a million or more
  • And 5 marijuana stocks that are set to return 500% each
And this is just a small sample of the exclusive information that Doug and the team will share during this event.

FREE ACCESS to our April 26th event: Doug Casey, Nick Giambruno and Justin Spittler will reveal why the marijuana boom is just starting right now. And how 2018 will be the year of marijuana millionaires for those who get into tiny, little known pot stocks today.

Plus, you’ll discover why some of the best profit opportunities in marijuana have nothing to do with growing or producing the plant. Instead, Doug and the team will share the most promising “pick and shovel” plays. These are companies on their way to becoming the next “Home Depot of Pot” and “Amazon of Weed.”

And Doug Casey will break down how he became a marijuana millionaire with a penny pot stock and why he sees bigger opportunities in today’s marijuana boom for those who get in now.

Access to a brand new video training series: Released for the first time exclusively for this event, these 3 trainings will show you:

  • Why everyone who thinks the biggest gains in marijuana have already been made are dead wrong. We’re actually at the very start of the biggest marijuana mania in history.
  • Why you don’t need to know anything about marijuana or investing for the chance to become a marijuana millionaire in today’s bull market.
  • How marijuana stocks are delivering similar gains to Bitcoin and cryptocurrencies… but are much safer and easier to buy. And we’re actually in an earlier stage of the marijuana boom than we are in Bitcoin.
  • Why regardless what the federal government does, marijuana legalization is a runaway train and the best opportunity today to turn a couple of hundred dollars into a fortune.
And much, much more…

You’ll be able to watch these short, information packed videos right on your computer or phone.

PLUS… you’ll be able to download the transcripts directly to your computer, print them out and read them at your leisure.

During the first marijuana mania, the best pot stocks averaged peak gains of 24,000%. And that was with just two states (Washington and Colorado) legalizing recreational pot. Now that it’s legal in California, and Canada is set to go recreational this June, we’ll see the biggest marijuana profits in history from this bull market.

You’ll get all the details in our training and Summit.

Tuesday, March 27, 2018

This Week's Stock Market Analysis & Warning in Layman's Terms

As you likely know, the stock market, trading, and even long term investing are not easy. That’s why in this post we want to make the complex simple for you. We will do this in a way that will give you that “Eureka!” moment regarding knowing what the stock market is doing now, and where it is headed over the next 12-36 months.

Last August we spotted trends in the underlying financial system that are very early warning signs that the bull market in stocks will be coming to an end, along with this growing economy. There is a ton of data taken into account for this information, but we have broken it down into simple bite size points that simply make logical sense, from a technical analysts perspective.

First Warning

Back in April 2017, we posted an article showing the first set of data that most traders and investors do not see or follow, mortgage delinquency rates. Delinquency rates in Single Family Residential Mortgages and other Consumer Loans began to climb through the second half of 2016 and continue to rise today. We shared with readers a way to take advantage of this using the Real Estate Bear Fund (DRV). This fund is now up over 20% and climbing as it rises when real estate falls. The rise and timing of this delinquency rate increase coincide almost identically with the Fed when they raise rates. And the problem is not just mortgages defaulting, the same is happening with commercial loans, and credit card debt.

Just look at what has the fed being doing like a mad-man of late? Ya, jacking up rates like they are going out of style!

The graph below shows a red line which is the fed rate, and as that rises so do loan delinquency rates (blue line). You will also see the grey shaded areas on the graph, and these are bear markets (falling stock prices). It’s obvious that we are headed towards financial issues once again with debt and the stock market.

Mortgage Rates and Delinquency Rates on the Rise

On March 18th 2018 we post an update showing how real estate foreclosures are starting to rise dramatically! Subscribers to our Wealth Building Trading Newsletter took advantage of this as we got long SRS inverse real estate fund which jumped over 5% in the first two days of owning it.

Second Warning – Asset and Business Cycles

Because we are traders and investors our focus is on making money, so we are only looking at the blue wave/cycle on the diagram below. The blue cycle is the stock market, and the numbers posted along that cycle indicate which stocks/assets should be the most in favor, rising.

As you can see the numbers 9 and 11 at the top are both commodity based (precious metals and energy). And knowing that commodities typically perform well just before a bear market in stocks unfolds, we are on the cusp of a new trade that could last a few months and post significant gains.


Take a look at the commodity index chart below. Without getting to deep in to stage analysis I will just say commodities have formed a very strong “Stage 1” and are primed and ready for a multi-month rally.

Third Warning – Psychology of the Market

This market appears to be in a EUPHORIC “wonderland” moment driven by the fact that the global central banks have created a waterfall event of cheap money that is driving all of this asset valuation recovery. And, as capital is continually searching for the best environment for ROI, it is moving into the best areas of the global economy for survival purposes which we feel should soon be commodity-related assets, then eventually cash once the bear market takes hold.

Stock Market Conclusion

In short, as long as the capital continues to flow into the securities (stocks) and commodities in search for the best return on investment, we will continue to see markets hold up. But, stay cautious because when the markets turn and money is no longer looking for the next top performing sector or commodity, but rather just wants to exit investments as a whole and convert to cash (cash is king), that is when the bear market starts, and it could be very quick and violent.

Additionally, as we’ve shown with these charts and graphs today, we are entering a frothy period in the markets, and we would urge all investors to be critically aware of the risks involved in being blind to these facets of the current stock market and housing bubbles.

With 53 years experience in researching and trading makes analyzing the complex and ever-changing financial markets a natural process. We have a simple and highly effective way to provide our customers with the most convenient, accurate, and timely market forecasts available today. Our stock and ETF trading alerts are readily available through our exclusive membership service via email and SMS text. Our newsletter, Technical Trading Mastery book, and 3 Hour Trading Video Course are designed for both traders and investors. Also, some of our strategies have been fully automated for the ultimate trading experience.

Chris Vermeulen
Technical Traders Ltd.

Stock & ETF Trading Signals

Tuesday, February 6, 2018

Gold And Gold Miners Preparing for Big Move

Just a few days ago we alerted our members and followers to a massive setup in the Palladium market that had not been seen in years. This chart formation provides an incredible opportunity for a trader to take advantage of and profit from the expected price decline. We alerted our members and followers on January 24th of this move.

As of today, Palladium has rotated downward by over 9% from the recent highs and should continue to move lower as this multi-month rotation extends. Even though this initial move lower (-9%) reaches our initial predicted target levels, we still believe support won’t be found till prices reach near the $1000 price level. If that support fails to hold, the price of Palladium could fall to the $900. This total move could be over -20% by the time this downward swing ends.

As an additional bonus, the other metals and Miner ETFs are starting a move in correlation with this massive rotation in Palladium. The aggressive move in Palladium may become a catalyst for the other metals and miners to sell off further.

We warned weeks ago about this cycle top in gold and how it should rotate lower and move to near $1300 before finding support. This move has just started really and would equate to a -3.8~4.2% downward price correction.

The ability to see these moves and act on them provides our members with the ability to take a single trading signal and deploy multiple successful trades from it. We got our member’s long DUST near the very bottom of the market in anticipation of this move in the metals markets. Knowing that this move was set up and that it could be somewhat aggressive, we simply waited for the proper setup and trigger to alert our members.

The overall potential from our DUST trade remains substantial. Currently, we have already locked in +11% for our members and we believe the final move could be much larger.

The reason we are alerting you, today, of the progress of our calls, is that the market conditions are changing, and these types of trade setups are going to happen every month and a lot of money can be made by taking advantage of them each month. Join our Wealth Building Newsletter here at The Technical Traders and let us boost your trading returns with our daily analysis video, market updates, and trade alerts.

We just closed out another winning trade and members locked in a quick 9.1% profit with falling price of natural gas.

Our articles, Technical Trading Mastery book, and 3 Hour Trading Video Course are designed for both traders and investors to explore the tools and techniques that discretionary and algorithmic traders need to profit in today’s competitive markets. Created with the serious trader and investor in mind – whether beginner or professional – our approach will put you on the path to win. Understanding market structure, trend identification, cycle analysis, volatility, volume, when and when to trade, position management, and how to put it all together so that you have a winning edge.

Chris Vermeulen
Founder Technical Traders Ltd.

Stock & ETF Trading Signals

Monday, January 22, 2018

Are Traders Interested in Living Longer and Feeling Better?

For some reason my trading partners and our readers seem to be more interested in their health and longevity than my friends or even family members. It's for that reason we are excited to give you a quick heads up about something we think is going to be very important to them. And it’s happening really soon.

On February 1st, at 6:00 p.m. est, the "Live Longer, Feel Better!" documentary will air its live first episode. And believe me, you won’t want to miss even ONE of the experts that director Michael Beattie has brought together.

I’ve had a sneak peek at it and this is absolutely going to change how you think about getting older and maintaining your health. If you're AT ALL concerned about where you'll be in 30 years time, you MUST see this.

Click Here to Watch the Trailer

The documentary series and everything that accompanies it, presents you with a real action plan to avoid disease as you enter and enjoy your later years. But the earlier you start, the better!

On February 1st, you will be able to see it all at NO cost, Right Here!

The current epidemic of Alzheimers, Diabetes and other avoidable diseases is stealing our futures and condemning thousands of people to a nursing home. No one has to go through that!

Let’s take that future back NOW.

Please make time to watch this, and help me spread the word if you can.

To your health,
Ray's Stock World

PS. One final note – Each episode of this incredible 7 part series will be online for only 24 hours from release. Make sure you register right now so you don’t miss a single thing. You’ll be excited by what you’re about to discover.

Below is a Quick One Minute+ Video Trailer We Below

Saturday, December 30, 2017

2018 First Quarter Technical Analysis Price Forecast

As 2017 draws to a close, our analysis shows the first Quarter of 2018 should start off with a solid rally. Our researchers use our proprietary modeling and technical analysis systems to assist our members with detailed market analysis and timing triggers from expected intraday price action to a multi-month outlook.

These tools help us to keep our members informed of market trends, reversals, and big moves. Today, we are going to share some of our predictive modelings with you to show you why we believe the first three months of 2018 should continue higher.

One of our most impressive and predictive modeling systems is the Adaptive Dynamic Learning system. This system allows us to ask the market what will be the highest possible outcome of recent trading activity projected into the future. It accomplishes this by identifying Genetic Price/Pattern markers in the past and recording them into a Genome Map of price activity and probable outcomes.

This way, when we ask it to show us what it thinks will be the highest probable outcome for the future, it looks into this Genome Map, finds the closest relative Genetic Price/Pattern marker and then shows us what this Genome marker predicts as the more likely outcome.

This current Weekly chart of the SPY is showing us that the next few Weeks and Months of price activity should produce a minimum of a $5 – $7 rally. This means that we could see a continued 2~5% rally in US Equities early in 2018.

Additionally, the ES (S&P E-mini futures) is confirming this move in early 2018 with its own predictive analysis. The ADL modeling system is showing us that the ES is likely to move +100 pts from current levels before the end of the first Quarter 2018 equating to a +3.5% move (or higher). We can see from this analysis that a period of congestion or consolidation is expected near the end of January or early February 2018 – which would be a great entry opportunity.

The trends for both of these charts is strongly Bullish and the current ADL price predictions allow investors to understand the opportunities and expectations for the first three months of 2018. Imagine being able to know or understand that a predictive modeling system can assist you in making decisions regarding the next two to three months as well as assist you in planning and protecting your investments? How powerful would that technology be to you?

Our job at Technical Traders Ltd. is to assist our members in finding and executing profitable trades and to assist them in understanding market trends, reversals, and key movers. We offer a variety of analysis types within our service to support any level of a trader from novice to expert, and short term to long term investors.

Our specialized modeling systems allow us to provide one of a kind research and details that are not available anywhere else. Our team of researchers and traders are dedicated to helping us all find great success with our trading.

So, now that you know what to expect from the SPY and ES for the next few months, do you want to know what is going to happen in Gold, Silver, Bonds, FANGs, the US Dollar, Bitcoin, and more?

Join The Technical Traders Right Here to gain this insight and knowledge today.

Chris Vermeulen

Stock & ETF Trading Signals

Thursday, December 21, 2017

Today's Gap Fill and Prediction Complete, What's Next?

Subscribers of our Technical Traders Wealth Building Newsletter were told before the market opened that stocks were set to gap higher and then fill the price gap. Only 12 minutes after the market opened the gap window was filled for a 9.5 pt move in the SP500, which is a quick $475 profit for those trading futures, or $103 profit per 100 shares traded of the SPY ETF.

Yesterdays Gap Fill Forecast

If you want to know what the market are going to do today, this week, and next month be sure to subscribe to our new and improved market trend forecast and trading newsletter....

Visit "The Technical Traders ETF Cycle Trader" Right Here

Friday, December 8, 2017

New Strategies for Big Gains in an Old Bull Market

2017 is just about done and it's time to look at what worked and what didn’t. If you have gains, you want to protect them. If you have losses, you want to turn things around. With over 10,000 stocks to choose from, sometimes trading can feel like searching for a needle in a haystack.

But you don’t have to try to pick the right stock in the ‘haystack’. With Exchange Traded Funds (ETFs), you can just buy the whole haystack, especially when you’re taking advantage of ETF options.

To show you the right way to take advantage of ETF options, our friend John Carter, CEO of Simpler Trading, is putting on a live FREE interactive webinar just for our readers.

Register Here

If you haven’t heard of John before, he’s traded for over 25 years. He’s not only written a bestselling book on trading [check out Mastering the Trade right here], he’s also earned quite a reputation for catching huge moves.

2017 over $600 billion was poured into ETFs and John sees an even bigger year ahead in 2018. That’s why he’s so focused on his ETF options strategy. You can hedge against your portfolio while limiting your risk. You can even profit from your hedge.

John covers all that, plus:

  *   Why ETFs have powerful advantages even the newest of traders can exploit

  *   When to go for maximum leverage using double and TRIPLE leverage ETF options

  *   How ETF traders can cherry pick sectors to always ‘follow the big money’

  *   How to properly hedge against corrections and crashes without erasing gains

  *   How to take full advantage of the new Bitcoin ETF when it arrives

  *   The latest tools for identifying setups with the potential for triple digit gains (or more)

And a whole lot more.…

When it comes to ETF strategies, the opportunities are vast, There’s something for just about every trading style, from day trading to long term positions, and of course, hedging your portfolio. We got John to break it down for you and make it as simple as possible to maximize your profit potential through ETF options.

If you’re interested, go ahead and grab a spot for this training.

Go HERE to Register

See you Tuesday night!

Simpler Trading

Thursday, November 23, 2017

Could This Move Disrupt Global Markets?

Our team of researchers continues to attempt to identify market strengths and weakness in the US major markets by identifying key, underlying factors of the markets and how they relate to one another.

Recently, we’ve been warning of a potentially explosive bullish move in Metals and our last article highlighted the weakness in the Transportation Index as it relates to the US major markets. 

On November 2, 2017, we warned that the NQ volatility would be excessive and that any move near or below 6200 would likely prompt support to drive prices higher as our Adaptive Dynamic Learning model was showing wide volatility and the potential for rotation moves.

This week, we are attempting to highlight a potential move in Bitcoin that could disrupt the global economy and more traditional investment vehicles.  For the past few years, Bitcoin has been on a terror to the upside.  Recently, a 30% downside price rotation caused a bit of panic in the Crypto world.  This -30% decline was fast and left some people wondering what could happen if something deeper were to happen – where would Crypto’s find a bottom.  From that -30% low, Bitcoin has recovered to previous highs (near $8000) and have stalled – interesting.
While discussing Bitcoin with some associates a while back, I heard rumor that a move to Bitcoin CASH was underway and that Bitcoin would collapse as some point in the near future. The people I was meeting with were very well connected in this field and were warning me to alert me in case I had any Bitcoin holdings (which I do).  I found it interesting that these people were moving into the Bitcoin CASH market as fast as they could.  What did they know that I didn’t know and how could any potential Bitcoin blowout drive the global markets?
Panic breeds fear and fear drives the markets (fear or greed).  If Bitcoin were to increase volatility beyond the most recent move (-30% in 4 days) – what could happen to the Crypto markets if a bubble collapse or fundamental collapse happened?

How would the major markets react to a Crypto market collapse that destroyed billions in capital?  For this, we try to rely on our modeling systems and our understanding of the major markets.  Let’s get started by looking at the NASDAQ with two modeling systems (the Fibonacci Price Modeling System and the Adaptive Dynamic Learning system).
This first chart is a Daily Adaptive Dynamic Learning (ADL) model representation of what this modeling system believes will be the highest probability outcome of price going forward 20 days.  Notice that we are asking it to show use what it believes will happen from last week’s trading activity (ignoring anything prior).  This provides us the most recent and relevant data to review.
We can see from the “range lines” (the red and green price range levels shown on the chart), that upside price range is rather limited to recent highs whereas downside prices swing lower (to near 6200 and below) rather quickly.  Additionally, the highest probability price moves indicate that we could see some downside price rotation over the Thanksgiving week followed by a retest of recent high price levels throughout the end of November.

This NQ Weekly chart, below, is showing our Fibonacci price modeling system and the fact that we are currently in an extended bullish run that, so far, shows no signs of stalling.  The Fibonacci Price Breach Level (the red line near the right side of the chart) is showing us that we should be paying attention to the 6075 level for any confirmation of a bearish trend reversal.  Notice how that aligns with the blue projected downside support level (projected into future price levels).  Overall, for the NQ or the US majors to show any signs of major weakness, these Fibonacci levels would have to be tested and breached.  Until that happens, expect continued overall moderate bullish price activity.  When it happens, look out below.

The next charts we are going to review are the Metals markets (Gold and Silver).  Currently, an interesting setup is happening with Silver.  It appears to show that volatility in the Silver market will be potentially much greater than the volatility in the Gold market.  This would indicate that Silver would be the metal to watch going into and through the end of this year.  This first chart is showing the ADL modeling system and highlighting the volatility and price predictions that are present in the Silver market.  Pay attention to the facts that ranges and price projections are rather stable till about 15 days out – that’s when we are seeing a massive upside potential in Silver.
This next chart is the Fibonacci Price Modeling system on a Weekly Silver chart.  What is important here is the recent price rotation that has setup the Fibonacci Price Breach trigger to the upside (currently).  This move is telling us that as long as price stays above $16.89 on a Weekly closing price basis, then Silver should attempt to push higher and higher over time.  The projected target levels are $19.50, $20.25 and $21.45.  Notice any similarity in price levels between the Fibonacci analysis and the ADL analysis?  Yes, that $16.89 level is clearly identified as price range support by the ADL modeling system (the red price range expectation lines).

How will this playout in our opinion with Bitcoin potentially rotating lower off this double top while the metals appear to be basing and potentially reacting to fear in the market?  Allow us to explain what we believe will be the most likely pathway forward…
At first, this holiday week in the US, the markets will be quiet and not show many signs of anything.  Just another holiday week in the US with the markets mostly moderately bullish – almost on auto-pilot for the holidays.  Then closing in on the end of November, we could start to see some increased volatility and price rotation in the metals and the US majors.  If Bitcoin has moved by this time, we would expect that it would be setting up a rotational low above the -30% lows recently set.  In other words, Bitcoin would likely fall 8~15% on rotation, then stall before attempting any further downside moves.
By the end of November, we expect the US markets to have begun a price pattern formation that indicates sideways/stalling price activity moving into the end of this year.  This ADL Daily ES Chart clearly shows what is predicted going forward 20 days with price rotating near current highs for a few days before settling lower (near 2540~2550 through early Christmas 2017).  The ADL projected highs are not much higher than recent high price levels, therefore we do not expect the ES to attempt to push much higher than 2595 in the immediate future.  It might try to test this level or rotate a bit higher as a washout high, but our analysis shows that prices should be settling into complacency for the next week or two while settling near the lower range of recent price activity.

What you should take away from this analysis is the following : don’t expect any massive upside moves between now and the end of the year that last longer than a few days.  Don’t expect the markets to rocket higher unless there is some unexpected positive news from somewhere that changes the current expectations.  Expect Silver to begin to move higher in early December as well as expect Gold to follow Silver.  We believe Silver is the metal to watch as it will likely be the most volatile and drive the metals move.  Expect the major markets to be quiet through the Thanksgiving week with a potential for moderate bullish price activity before settling into a complacent retracement mode through the end of November and early December.
If Bitcoin does what we expect by creating a rotational lower price breakout setup from recent highs, we’ll know within a week or two.  If this $8000 level holds as resistance, then we will clearly see Bitcoin rotate into a defensive market pattern (a flag formation or some other harmonic pattern above support).  The US majors will likely follow this move as a broader fear could begin gripping the markets.
Lastly, as we mentioned last week, pay very close attention to the Transportation Index and it’s ability to find/hold support.  Unless the Transportation index finds some level of support and begins a new bullish trend, we could be in for a more dramatic move early next year.  Our last article clearly laid out our concerns regarding the Transportation Index and the broader market cycles.  All of our analysis should be taken as segments of a much larger market picture.  We are setting up for an interesting holiday season where the market could turn in an instant on fear or news of some global event (like a Bitcoin collapse).  The volatility we are seeing our modeling systems predict is increasing (especially in the Silver market over the next few weeks).  We could be headed for a bumpy ride with a classic top formation setting up.

Overall, protect your investments and your long positions.  Many people will be away from their PCs and away from the markets over the holidays.  It is important that you understand the risks that continue to play out in the markets.  Pay attention to market sectors that are at risk of showing us greater fear or weakness in the major markets.  Pay attention to these increases in volatility and price rotation.  Most of all, pay attention to the market’s failure to move higher over this holiday season because we should be traditionally expecting the Christmas Rally to push equities moderately higher at this time.
Should we see any more clear signs of weakness or market rotation, you will know about it with our regular updates to the public.  If you want to know how Acitve Trading Partners can assist you in staying up to day with the market cycles and analysis, then visit the Active Trading Partners and learn how we can assist you with detailed market research, daily updates, trading signals and more.
We are dedicated to helping you achieve success in the markets and do our best to make sure you are prepared for any future market moves.  See how we can assist you now and in 2018 to achieve greater success.

Stock & ETF Trading Signals

Thursday, November 16, 2017

Utility Tokens and Cryptos Finally Properly Explained

We have asked our trading partner Teeka Tiwari to explain to us what crypto currencies are and the difference in a crypto currency and the many tokens being offered in the ICO markets right now. Please take a few minutes to read his entire response, when you are done you will have a complete grasp of cryptos and utility tokens....

Cryptos are a brand new asset class. They're completely different from stocks, bonds, and traditional currencies. But that was over 18 months ago. Since then, Bitcoin has risen 1,600% and ether (the coin for the Ethereum network) is up 2,563%.

Perhaps you feel that crypto assets aren't assets at all. Perhaps you've missed out on this incredible run and think it's too late to get in. I want to show you why cryptocurrencies are not like the Dutch Tulip Craze. In fact, we're still in the early days of the cryptocurrency boom.

According to billionaire hedge fund manager Mike Novogratz, the entire crypto market is set to become 25 times larger in the next 5 years. That would be a 2,400+% rise from today. And he's putting his money where his mouth is. Novogratz recently put 10% of his net worth into crypto assets.

That means this asset class still has plenty of room to run and there's still time for you to join the ride. What I'm about to share with you could be very valuable. Like the internet before them, cryptocurrencies have the potential to reshape the economy and they offer a rare opportunity for ordinary individuals to make life changing gains.

The Cryptocurrency Ecosystem
To kick off your education, you need to understand there are two types of crypto assets: cryptocurrencies and utility coins (also called app coins). Think of cryptocurrencies as the digital equivalent of traditional fiat currencies such as dollars, euros, and pounds.

You can use them as a medium of exchange or to store value. The only difference is they're exchanged over the blockchain. Think of utility coins as crypto equities. They're like buying shares in IBM, Walmart, or Apple. Instead, you're buying a stake in a blockchain venture.

Cryptocurrencies and utility coins are similar in that they both operate on a blockchain. The blockchain is like an online public ledger. It's used to track cryptocurrency transactions [Blockchain is a public ledger of all cryptocurrency transactions executed. It's a shared network that can move value around and represent property ownership.]

Now that you know the two types of crypto assets, let me explain how each works.

A New Form of Money
Cryptocurrencies are the crypto asset that most folks are familiar with. So, we'll dive into this one first. The most common cryptocurrencies is Bitcoin. It was created to act as alternatives to fiat (paper) money. Two frequent questions we get are why would anyone buy a cryptocurrency that's backed by nothing and can be created by anyone.

These aren't only fair questions, but smart ones. Here's the thing to remember about money: It's whatever people mutually agree it is. In the past, beads, cowrie shells, silver, gold, and of course paper, have all been used as money. You'll notice that none of them have any intrinsic value.

At the end of the day, a sack of flour has more practical value than a $100 bill or even a bar of gold.
And yet, we value both far more than a sack of flour. That's the mutual agreement we've all come to.
When you think about it, it's not that rational. How does a piece of green paper or a bar of yellow metal hold more value to a human than a sack of flour that can be used to feed a family for weeks?

Because we all agree it does.

In my opinion, paper currency may be the most irrational form of money in human history. At least you can decorate yourself with gold, silver, beads, and cowrie shells. Not only that there's a limit to how much gold, silver, and shells that can be found. There's no limit on the amount of paper money that can be created.

The closest thing to true money (outside of food) is gold. Gold meets several historical rules that we use to judge value. It's prized for its beauty. It's difficult to find. It's expensive to extract. It's also a scarce resource. But there are problems with gold, too. We have to trust that the refineries that certify the gold's purity are telling the truth.

Gold is also difficult to transfer (think of carrying around bags of gold coins or chests of gold bars). And that makes it virtually useless as a practical medium of exchange in daily life. What I mean is you can't buy a new car, house, or even a book with gold bars.

Here's How Cryptocurrencies Are Creating Value
Well designed cryptocurrencies have many features that humans look for when measuring value. Let's talk about them now.

Pre-Programed Scarcity
Cryptocurrencies like Bitcoin are pre programmed to create a set amount of coins. Once this limit is reached, no new coins will be created. This creates scarcity. For instance, the algorithm that governs Bitcoin will create no more than 21 million Bitcoins.

Think about this, there are 35 million millionaires in the world. That means if every millionaire wanted to own an entire Bitcoin, they wouldn't be able to. There literally is not enough to go around. Contrast that with paper money.

With paper money, there's no limit to how much can be created. However, gold is finite. That limits how much new gold can be refined each year. You can see that cryptocurrencies actually have more in common with gold than with paper money.

Difficult to Counterfeit
Cryptocurrencies rely on a technology called the "blockchain." This blockchain uses cryptography to secure transactions. These complex mathematical algorithms make counterfeiting cryptocurrencies almost impossible. Now, compare that to cash. It's estimated that almost a quarter billion dollars of counterfeit paper money sloshes around the U.S. every year.

What about gold? Fake gold will never fool an expert. But counterfeit gold could be passed off to someone with an untrained eye. Cryptocurrencies share two important criteria that give value to traditional assets: scarcity and irreproducibility (hard to counterfeit). These are necessary to create value. But you need something else, too.

A Final Criterion
For a thing to have value, it needs one final thing: Some form of utility. Even art (which some will argue is worth little more than the sum of its parts), creates massive utility by stirring deep emotions in the hearts of people that can appreciate it. That emotional response is a very valuable form of utility. It's the reason people spend billions on art annually. So, what type of utility do cryptocurrencies provide?

Rapid Transfer of Funds
Unlike the transfer of gold or even cash, cryptocurrencies can transfer value almost instantly. And they can do it at very low costs. On the Bitcoin network, you can send $50,000 for about $3. The receiver will get it in about 10 minutes.

Compare that to a traditional wire transfer. The fastest I've seen a wire hit is 24 hours. The cost to send a domestic wire can vary from $35 to $70. International wires can eat up 1%-15% of the total amount of money sent. As far as sending gold, it takes 3-14 days domestically and is very expensive. So, being able to quickly send money anywhere in the world is a very valuable utility that cryptocurrencies possess.

Free from Government Control
Over the years, both gold and cash have been either confiscated or severely restricted through capital controls. Capital controls are government restrictions on your ability to access or move your money.
Even here in the U.S., we have capital controls. For instance, you can't just stroll through airport security with more than $10,000 in cash.

Unless you declare it, you're breaking the law. Even though it's our money, the government insists we report when and where we're moving it. This is an outrageous demand that we accept because there are no alternatives. That is until cryptocurrencies came around.

With cryptocurrencies, we are in complete control of our own funds. We can store them on our own devices free from government intervention. If you store your cryptocurrencies properly, it is impossible for the government to confiscate or control them. This is a truly liberating utility that is very valuable.

Highly Secure Decentralized Payment Network
One common criticism of cryptocurrencies is that anyone can make one. How can something have value if you can create a currency with just a few lines of code? This criticism is spot on.

But remember, anyone can buy a printing press and start making his or her own paper money. What stops people is that no one would use it. The same is true in crypto. Only currencies that gain widespread adoption actually take off.

One of the ways we measure this widespread adoption is by looking at the number of computers that are in a cryptocurrency network. For instance, more than 7,000 separate computers are running the Bitcoin blockchain.

That widespread adoption is a vote of confidence by the market. It's a way for us to objectively identify "good" cryptocurrencies from bad ones. As the network of users grows, so does the volume of cryptocurrency being transacted. This in turn creates a network effect that snowballs.

For instance, $143 million per day of Bitcoin changed hands in 2016. Today, it's over $4 billion per day. The widespread use of this currency is giving it value. Thousands of people are coming together and agreeing to exchange goods and services for Bitcoin.

That is the true test for any currency. Are people accepting it? The answer is a resounding yes. For these reasons, we believe you'll see more people continue to adopt cryptocurrencies like Bitcoin. They offer utility that neither cash nor gold can. Just a few of those companies already accepting Bitcoin or other cryptocurrencies are....Overstock.comMicrosoftIntuitPayPalDISH Network and many more.

A Second Type of Crypto Asset
Earlier, I told you there are two types of crypto assets. The first is cryptocurrencies (which I've just explained to you). The second type of crypto asset goes by several names. Some folks call them "application coins" others call them "utility coins."

The terms are interchangeable. So, what is a utility coin? A utility coin is a crypto asset that is used to secure or deliver a service. Our biggest gains have come from investing in utility coins.

That's why I want to spend the rest of this email talking about them. If you can understand how utility coins work, you can make a fortune in them. In my Palm Beach Confidential service, I have readers that are transforming $300 investments into six figure windfalls by getting in early on utility coins.

Three Themes Driving the Value of Utility Coins
Over 2017, I've been to conferences in Silicon Valley, Boston, Austin, Las Vegas, New York City, Berlin, London, and Copenhagen. During these conferences, I've met with hundreds of people. I've met crypto project founders, venture capitalists, government regulators, central bankers, Fortune 500 executives, hedge fund managers, and digital currency miners.

These are the three primary themes that are driving their research, development, and investment decisions:

  • Fat protocols
  • Interoperability
  • Scaling
If you don't know what these terms mean, don't worry. I'll explain each for you right now.

Theme 1: Fat Protocols
What is a "fat protocol"? I had to ask myself the same question. I stumbled upon this theme at the Consensus 2017 event in New York City in late May. And I heard about fat protocols in more detail in Berlin. Let's start with protocol. In the technology world, a protocol is a set of rules.

For instance, the internet is governed by two protocols: TCP and IP. TCP stands for transmission control protocol. This is a set of rules that governs the exchange of packets of data over the internet. IP stands for internet protocol. This is a set of rules that governs sending and receiving data at the internet address level.

IP by itself is something like the postal system. It allows you to address a package and drop it in the system, but there's no direct link between you and the recipient. TCP/IP, on the other hand, establishes a connection between two hosts, so they can send messages back and forth for a period of time.
Nobody owns TCP/IP. But imagine if someone did. How valuable would the protocols be?

Think about this. According to a Harvard Business Review article, more than half the world's most valuable public companies have built business models on TCP/IP. That's $5.4 trillion dollars in value traced right back to TCP/IP. Think of the biggest names in the internet space: Amazon, Google, Facebook, Priceline, eBay, Netflix, Uber, etc... They are applications, not protocols.

In short: Applications (or "apps") are computer programs that run specific tasks. They include simple desktop apps like calculators, clocks, and word processors to mobile apps like media players, games, instant messengers, and maps. Google's YouTube, Facebook's Messenger, and Microsoft Word are examples of popular web applications. Companies own their applications.

Protocols are the rules computers use to communicate with each other. TCP and IP are examples of widely used protocols. Unlike applications, no one owns computer or internet protocols. For instance, the Ethereum platform has created a protocol for the issuance of crypto tokens (among many other things).

Ethereum has created rules that make it easy to launch and manage digital tokens. That's why more than 50% of new tokens coming to market are using the Ethereum platform. As more projects are launched on the Ethereum network, the demand for ether tokens increases. Said another way, the more the protocol is used, the more valuable the ether tokens become.

These protocols are called "fat" because most of the economic value and profits will be captured at the protocol level. All the tokens launched on the Ethereum platform are only worth $6.8 billion. But the Ethereum platform itself is now worth $34 billion.

Even as more and more companies go "public" on the Ethereum platform, we think Ethereum will be more valuable than the applications that end up running on it. The reason is that the more the protocol is used, the more demand is generated for the underlying protocol token. That's how utility coins like ether gain their value.

Theme 2: Interoperability
Hundreds of new blockchain ledgers are emerging. On top of that, there are hundreds of established centralized ledgers and payment networks. These established payment channels are used by banks and payment providers. We're talking about giants like JPMorgan, PayPal, Visa, and MasterCard.

As the world migrates from a centralized to a decentralized model, how do you get these different networks to communicate with one another? This is a huge problem. That's why we think the next boom will be in companies that allow different ledgers to "talk" to each other.

Imagine there's an English speaker, German speaker, and French speaker in the same room. And no one speaker understands any other speaker. This is the problem right now with blockchains and payment networks. They all "speak" different languages. But what if somebody could create a technology that would allow these different languages to understand one another? In the tech world, this is called "interoperability."

The Difference Between Financial Ledgers and Blockchain Ledgers
Today's financial system requires a lot of overlap. Financial institutions spend a lot of time and money maintaining their systems and even more time and money making sure their systems agree with other systems on common facts.

This is done so that there is no single point of control or single point of failure. The solution is decentralization. It eliminates single points of failure and the necessity for each institution to duplicate the data. The table below highlights the differences between a traditional ledger and a blockchain ledger.

Imagine a version of eBay or PayPal that can work with virtually any digital or fiat payment system. That's the goal of interoperability. Here's the key takeaway, The utility coins that are building in easy to use interoperability will be the ones that become highly valuable.

Theme 3: Scaling
While in Berlin, I met a group of executives from drug giant Merck. These folks oversee Merck's European innovation group. They are tasked with identifying and getting management "buy in" on implementing innovative technology. They have a terrific grasp of the blockchain. They know it could potentially save Merck millions of dollars in costs.

The problem is none of the current blockchain platforms scale. Meaning they just can't operate at the speed and level of complexity Merck requires. This is a common complaint. I've heard it from executives in London, Boston, Silicon Valley, New York City, and now Berlin.

The two most popular blockchains, Bitcoin and Ethereum, can only handle seven and 15 transactions per second, respectively. Like the old 56k telephone modems of the '90s, that's awful. But it would be a mistake to think that it will stay that way forever.

Just as those modems eventually transformed into the high speed internet we enjoy today, it's only a question of time before Bitcoin and Ethereum crack the scaling problem.

Bringing It All Together
The future for cryptocurrencies and utility coins is bright. As more people look to take control of their money, they'll turn to cryptocurrencies like Bitcoin and others. As I track the developments in fat protocols, interoperability, and scaling, I'm seeing more and more widespread adoption of utility coins like ether and many others.

But remember: These are still very early days. We'll see massive volatility ahead. It's unavoidable. The key to thriving in the chaos of the early days of a new technology is to remain rational. Friends, hear me when I tell you that it is irrational to expect the crypto market to be stable. Any market this new is highly unstable. The way we manage and profit from that instability is to use small position sizes. With crypto assets, we rely on asymmetric risk.

With crypto we can swing for the fences without putting the rest of our existing wealth at risk. This is a rare opportunity for ordinary people to make life changing gains without having to take life changing risk. That means we risk a small amount of money for a massive potential payoff. This strategy is working well for my readers.

The best part is this trend is just beginning. Right now, the entire crypto market is valued at about $195 billion. Novogratz, the hedge fund billionaire I mentioned earlier, sees the entire market growing to $5 trillion. That's 2,400+% upside ahead. That means we have many more opportunities in front of us to make life changing gains. So get out there. At the very least, buy some Bitcoin and Ethereum.

Remember, you don't have to own a whole Bitcoin. You can own just a fraction of a coin.
And as all these developments unfold – along with others like them – I'm confident that one day you'll be grateful you took action.

Let the Game Come to You!
Teeka Tiwari

Friday, November 10, 2017

The Iron Rule of the Financial Markets

This math formula that can literally predict the market:    dxt=θ(μ−xt)dt+σdWt

John Bogle the founder of The Vanguard Group, calls it the iron rule of the financial markets. Jason Zweig from the Wall Street Journal says it’s the most powerful law in finance.

Legendary trader James O'Shaughnessy says that historically, we have always seen it driving stocks. And over the last 8 years it could have paid you well in consistent reliable profits.

Now I’m Going To Show You How It Works ← Click Here

If you trade it with options it could produce rapid two week individual trade profits like....

  *  204% on XLU Put Options

  *  124% on XLE Call Options

  *  And even as much as 998% on XLE Put Options

  *  All in precisely two weeks - no more, no less.

Get The Facts ← Click Here

My trading partner Todd Mitchell has recorded a three video series explaining how it works. He’s making it available to you now - 100% for FREE.

This series will only be available for a very limited time. If you want to watch…

Visit Here to Check it Out Right Now

See you in the Markets!
Ray C. Parrish
aka the Crude Oil Trader