2018-09-17 Week - Hurricane - Cryptos
Henry Ledyard of Addlepated - InsideFutures.com - Fri Sep 14, 5:47PM CDT

This Week

BOJ rate decision will spark market discussion about low rates and capital flows. No changes to policy are expected, which may be detrimental to markets.

Hurricane Florence

The southeast coast of the USA is about to get hammered by rain. That means that every person with insurance will be trying to make a claim against hurricanes while the insurance company tells them that flood damage is not covered. This is the same thing that happened in New York when it was pounded by a hurricane.

The question will be on the scale of damage and the size of the recovery. Considering how long it took for New Orleans to recover after Katrina, such weather events are a massive disruption to an area for an extended period. Flooding causes massive damage, and may destroy already struggling business while destroying valuable infrastructure.

As these weather events become more frequent, expect that costal businesses will experience disruptions. An important question to ask is how these disruptions will effect the auto plants, manufacturing and even Amazon`s new fulfillment center. Power outages stall businesses and cause losses. Hedge accordingly.

Cryptos

Cryptos have climbed off their recent lows. For bitcoin, this puts the $6000 level as a long term floor. This implies that value buyers have come into the market at this level. That means that price will climb as speculators and momentum traders enter on the long side. So expect a move higher before profit taking occurs.

Look for a higher point of consolidation before expecting a move higher. Take short term profits off the table, if you are running a leveraged position. If you are a long term investor, hold for now.

DISCLAIMER:

YOU ARE AN ADULT and must make your own decisions. ONLY YOU know what level of experience you possess. ONLY YOU know what level of risk you are willing to take. ONLY YOU know what your financial goals are, and to what lengths you are prepared to go to meet those goals. You will be the one to wear your losses, so trade with caution and do your own research.

Henry Ledyard is an independent trader. He has NO affiliations with banks, brokerages, funds, trading houses or markets. He trades for himself and posts trading ideas merely to share information. He does NOT want your money, advice or opinions. He does NOT want your unsolicited emails. If you require further financial advice, seek it elsewhere. Henry`s opinions should be considered as addled as his blog site:

www.addlepated.com.au