Blog

  • Danske Bank Closed Branch in Estonia – Money Laundering Scandal Saga

    Danske Bank Closed Branch in Estonia – Money Laundering Scandal Saga

    1 min read

    Danske Bank Closed Branch in Estonia - Money Laundering Scandal Saga

    Danske Bank in Tallinn, Estonia

    Estonia ordered Danske Bank to close its local branch within months on Tuesday.

    Danish and Estonian regulators faced an EU investigation into their efforts to prevent one of the largest money laundering scandals ever.

    Danske Bank’s Estonian branch was found to have helped funnel some 200 billion euros ($226 billion) in suspicious payments from Russia, ex-Soviet states and elsewhere.

    According to OCCRP (Organized Crime and Corruption Reporting Project), Danske Bank Estonia is already implicated in other money-laundering schemes, involving billions of dollars from Azerbaijan flowing through the branch, some of which ended up in the pockets of European politicians who praised the Baku regime, a chronic human rights abuser.

    Another investigation, the Russian Laundromat, revealed that US $20–80 billion was moved out of Russia through a network of global banks, including Danske.

    Danske Bank Estonia is already implicated in other money-laundering schemes, involving billions of dollars from Azerbaijan flowing through the branch.

    This ultimatum was made public as Danish and Estonian regulators found on Tuesday they are being investigated by the European Union’s own banking watchdog.

    Laundry and run

    The Danish bank is being investigated in Estonia, the US, Denmark, the UK, and France for handling billions of dollars that flowed through its Estonian branch on behalf of non-residents from Russia and other former Soviet states between 2007 and 2015.

    One of the banks mentioned was the little-known Promsberbank, based near Moscow, that lost its license in 2015. Promsberbank collapsed in 2016 after it transpired that some three billion roubles had disappeared from its accounts.

    One of Promsberbank’s board members was Vladimir Putin’s cousin, Igor Putin. It looks he was involved in the Russian Laundromat scheme.

    The Danske Bank case focuses on money moved between 2007 and 2015. The questions about the supervision of the Danish bank were raised, prompting the EU’s executive European Commission to ask the European Banking Authority (EBA) to investigate.

    The EBA’s investigation will take two months, and if it finds a breach of EU law, it can make recommendations to the two regulators to address failings.

    Danske Bank is not alone

    Swedish television said it had uncovered documents connecting the bank to suspicious transactions with Danske in Estonia.
    And Swedbank defended its money laundering rules and controls.

    Swedbank spokesman Gabriel Francke Rodau said that fighting money laundering was one of Swedbank’s highest priorities.

    “We are comfortable with the systems and processes we have to prevent and avert money laundering. When we get signals, we act,” he said.

    The Swedish TV (SVT)  said that transactions by 50 of Swedbank’s clients should have raised red flags as they were companies with no visible operations, had unknown beneficial owners or were represented by suspected “goalkeepers”, people who only provide a front for an organization.

    “The investigation covers more than 1,000 of Swedbank’s clients in high-risk countries who are known from the money laundering scandal in Danske Bank,” SVT states on its website.

    The bottom line

    So, as we can see, criminals don’t need bitcoin to launder money.
    Traditional banks and fiat are good enough for that.

    risk disclosure

  • Gold Markets Break Out Above The Resistance

    Gold Markets Break Out Above The Resistance

    1 min read

    Gold Markets Break Out Above The Resistance
    Gold markets rallied significantly during the trading session on Tuesday. If the US dollar continues to fall, and it certainly shows itself likely to do so, the Gold markets will quite often rally by proxy. This market has a significant amount of resistance above. We are towards the top of the overall consolidated range, you have to keep in mind.

    At this point, there is a lot of sounds spreading to the $1350 level. So, this is a very bullish looking candle. It would not be surprising to see some sort of pullback in this marketplace but now the $1325 is support level. It was resistance before.

    If gold can break above the $1350 level, the break will become the gate opened, and the market should very promptly go towards the $1400 level.

    Hence, the idea of buying pullbacks in this precious metal sounds quite good. Well, as we can see, the strong uptrend certainly looks likely to continue.

    Commodity analysts have been turning more bullish on gold

    Take a look at this chart. You can see that the market just broke out above a bullish flag, and of course, have cleared a significant resistance. So look for value and you will be rewarded.

    But the $1300 level underneath is a massive floor in the market. It will be difficult for this market to break down through there. If so, then the $1275 level should offer support. There’s a couple of various places where the buyers will return. Look at short-term charts, but you should get the opportunity to pick up gold cheaply fairly soon.

    Maybe too many traders have rallied to buy on this level.

    It would make sense that the pullback happens.

    A precious metals bullion coin sales rebounded in January with the strongest monthly sales in two years. The U.S. Mint sold 65,500 troy ounces of the gold American Eagle and 4,017,500 troy ounces of the silver American Eagle in January 2019 – 12% and 24% increases respectively over the same month last year. In January 2018, investors purchased 58,500 troy ounces in gold bullion coins and 3,235,000 in silver bullion coins.

    Many analysts credit the Washington Gold Agreement of 1999 as the seminal document at the heart of this precious metal secular bull market. In it the top central banks agreed to gradually curtail the sale and lease of gold reserves, two activities that kept the price rangebound for much of the 1990s. At the time, it was stuck in the $270 to $300 price range.  From there, it never looked back.

    Fast forward to 2011 and we begin to see central banks moving from the net seller side of the gold fundamentals ledger to become net buyers. Some analysts applauded the simple retreat from sales and leases as a major victory for gold bulls. The move to becoming net buyers was the icing on the cake. In 2018, central bank gold purchases reached their highest level in fifty years according to World Gold Council data – a profound development the machinations of which have yet to be fully digested in the marketplace.

    The bottom line

    The gold market fresh 10-month high could be the start of a renewed uptrend in the precious metal. Because the market has broken important resistance levels, according to some economists.

    Commodity analysts have been turning more bullish on gold since last month. It came after the Federal Reserve signaled that it would pause its interest rate hike cycle for the foreseeable future.

    Analysts have noted that a “patient” U.S. central bank, will keep real interest rates low and provide less of a tailwind for the U.S. dollar. Growing economic risks and the rising fear of a global recession will also keep the pressure on equity markets, economists have also said.

    risk disclosure

  • Position Trader: Know When To Go Long or Short

    Position Trader: Know When To Go Long or Short

    Position Trader: Know When To Go Long or ShortPosition trades requires just a half of hour work per day, but profits can be great.

    By Guy Avtalyon

    Position trader has a long-term approach to trading. Rather than ready, set, go, it’s more like ready, set, stay for a while. It is a trading methodology that seeks to capture trends in the market.

    The idea is to reach the income without getting stopped out on the retracements. Hence, it is great for traders who prefer analysis but may not have as much time to dedicate to continually watching stocks.

    Here, we’ll give you some insight into the pros and cons of position trading. Including what it is, is it right for you, and how to start.

    When it comes to trading, do you go long or short?

    Many traders do not have the time to trade the most well-known styles such as Intraday, Day, or Swing Trading. All of these styles want more time, a higher capital base, and the ability to be trading early morning or afternoon while the market is open.

    Position trading is a unique type of trading that is defined by longer holds of security. It provides an alternative that is actually more profitable with less time.

     

    Typically position traders hold time anywhere from a couple of weeks to a couple of months, which is the resistance that will stall or reverse the trend.

    But, it applies the same fundamental research methods as shorter-term trading.

    Pros:

    • It requires less than 30 minutes a day
    • It’s fitting for those with a full-time job
    • Less stress compared to swing and day trading

    Cons:

    • You’ll watch your winning trades turn into losing trades, often
    • Your winning rate is too low. It is around 30 – 40%.

    Can you accept this?
    Excellent!
    Let’s go further!

    If you search online for position trading, you will find a decent amount of information about forex trading.

    But very limited information you can find about position trading stocks.

    Let’s say, the first challenge, then, is to find a definition of position trading.

    Position trader definition

    A position trader is a trader who holds a position, usually stocks, for the long-term. It can be from weeks to months and even years. Position traders usually use a combination of technical and fundamental analysis. That’s in order to make proper trading decisions and often do more to evaluate the companies behind the stocks.

    Position trader, often known as “buy and hold” trader, takes longer-term positions usually based on long-term charts and macroeconomic circumstances. These traders work in almost every market, including stocks, ETFs, forex, and futures.
    They aren’t only committed to buying. They can also hold long-term short positions making money as an asset decline in value.

    Position trading benefits

    Position trading is taking a position in an asset, expecting to participate in a major trend. Such traders aren’t concerned with minor price fluctuations or pullbacks. Instead, they want to capture the bulk of the trend, which can last for months or years.

    The main glamour of this approach is that it doesn’t require much time. Once the fundamental research is done, and the position trader has decided how they want to trade the asset, they enter a trade and there’s little left to do. They monitor their position from time to time. But since trivial price fluctuations aren’t a concern, the position requires little oversight.

    Who is a position trader

    It is the opposite of the day trader. Day traders make trades each day and spend hours trading.

    Swing trading is less time-intensive than day trading since trades last a couple days to several weeks. But this still expects time to monitor and find new positions each week.

    Position traders usually make zero or three trades a year in assets they own. Swing traders would make a few hundred trades per year, and day traders would make hundreds to thousands of trades at the same time-frame.

    Where to find trends

    Support and resistance let you buy low and sell high.

    An uptrend occurs only after breaking above the highs of a range. So, if you want to enter your trades before the price breaks out, you have to do so at the moment when the market is changing.

    And the best place to go long is at support, the point when the market is moving.

    Trends often begin with a breakout of a range or other chart pattern that had limited the price action. So, when the price breaks out of the pattern it can often trend for some time. This is especially true if the chart pattern lasted for a number of years. That indicates the price could trend for a number of years once it breaks out.

    Chart patterns range, triangles, cup and handles, head and shoulders, an inverse head and shoulders, all indicate a trend could begin or re-rise.

    As an investor, you want to pick a stock that will benefit you over time from a long-term trend.

    The timeline isn’t a fixed and unchangeable part,  you might hold a position for a week to even years.

    In an aim to ensure that your investment can pay off over time as a position trader, you need to put a lot of emphasis on fundamental analysis. You have to do plenty of research about potential companies, examining press releases, earnings reports, and analyzing charts before making decisions about which stocks to trade.

    But position trading is not the same as long-term investing.

    When position trading you must have this approach: it’s actually the last level of trading before you called it long-term investing.

    The main difference between position trading and long-term investing is that the former can be a long-term position, but depending on the trajectory of the trend, it might not be. Hence, the latter is only a long-term position.

    Why use position trading

    This is a simple but important fact: If you want to be a successful trader, it’s important to figure out what type of trading the best suits you.

    This is usually the sum of various factors:

    • The size of your account
    • The amount of attention and time you can dedicate to trading
    • How fast you want to grow your account
    • And last but not least, of course, your risk tolerance.

    Your trading experience also matters.

    We wouldn’t tell anyone to jump right in and try to take advantage of pre-market trading, for example.

    This is a more advanced method that requires experience and courage.

    How to find position trades

    There are several ways to position trading. For example, buying assets that have strong trending potential but haven’t started trending yet. Or alternatively, buying an asset that has already begun to trend.

    Buying assets that have already begun to trend is a less intensive attempt. Hence, it is favored by many position traders.

    Finding a trend is the main component of a position trade. This will usually eliminate any assets trading within a range.

    Unless the price range is very large and crosses for many years. In such a case, it could take years for the price to move from one side of the range to the other. But this suits the position trader very well.

    Is a position trader a long-term investor?

    No, it’s different. Being a trader, what might attract you to try this style?

    The main benefit, position trading is somewhat accessible to new traders. The speed isn’t as wild as day trading or swing trading. So you have a bit more time to draft your course of action and build a trading plan.

    Position trading is less demanding on a day-to-day basis. You don’t have to watch charts on an hourly basis. All that is need is to check your investment to make certain it’s operating according to the trend you identified previously.

    On a deeper level, position trading can also be more attractive in various types of markets.

    For example, if there is a bull market in a scene and there are strong rising trends, it can be a good time to engage in position trading.

  • Facebook Accused of Behaving Like ‘digital gangsters’

    Facebook Accused of Behaving Like ‘digital gangsters’

    2 min read

    Facebook Accused of Behaving Like ‘digital gangsters’
    UK parliamentary commission has accused Facebook to act as a ”digital gangsters”.

    After 18 months, 73 witnesses, 4,350 questions, and innumerable hours of testimony, British lawmakers presented a finding on Facebook’s year. Direct from hell.

    A report from this UK body has taken direct aim at Facebook CEO Mark Zuckerberg, accusing him of “contempt.”

    A UK parliamentary committee published a report on Monday, 02/18/2019, accusing Facebook of putting profit over privacy, misleading lawmakers, and being a “digital gangster” that considers itself above the law.

    British politicians also said democracy was “at risk” from foreign countries trying to influence UK elections through social media ads.

    The new report by British lawmakers is brutal to Facebook and it’s CEO Mark Zuckerberg. They said that Facebook “intentionally and knowingly” obstructed U.K. data privacy and anti-competition laws. And that’s why it urgently needs to be regulated and investigated.

    Facebook has shown the arrogant and dishonest face.

    Mark Zuckerberg refused to present himself to the committee.

    To cite the report:

    “Facebook seems willing neither to be regulated nor scrutinized…

    Facebook intentionally and knowingly violated both data privacy and anti-competition laws …

    We consider that data transfer for value is Facebook’s business model and that Mark Zuckerberg’s statement that ‘we’ve never sold anyone’s data’ is simply untrue.”

    In the 108-page document, lawmakers called for the making of an independent regulator for social media sites and a mandatory code of conduct that. If someone breaches it, their suggestion is – “large fines.”

    Mark Zuckerberg continually refuses to show the leadership and personal responsibility that should be expected from someone who sits at the top of one of the world’s biggest companies, says the committee.

    Damian Collins, chair of the committee, said on the committee’s website: “Mark Zuckerberg continually fails to show the levels of leadership and personal responsibility that should be expected from someone who sits at the top of one of the world’s biggest companies.”

    This was, however, not the only reason why British politicians accused Facebook of behaving like “digital gangsters” in the online world.

    “Companies like Facebook should not be allowed to behave like ‘digital gangsters’ in the online world, considering themselves to be ahead of and beyond the law,” the report said.

    “We are open to meaningful regulation and support the committee’s recommendation for electoral law reform,” Karim Palant, Facebook UK public policy manager, was quoted as saying by The Guardian.

    But, something has to be noted, the problem is bigger than just one company. Google and YouTube, which are barely mentioned in the report, play almost as important a role in the dissemination of misinformation online. And they are happy to profit from it. As the information commissioner, Elizabeth Denham has warned, we are now being sold political ideas online with the same techniques that are used to sell shoes and holidays.

    Buying the wrong ideas is less obvious than the pain of old-fashioned shoes. The political sale is much more easily made.

    There is a paradox of the amazing effectiveness of Facebook and YouTube when it comes to the distribution of ideas.

    Some people trust what they find there.

    The online channels, seem to offer intimacy to their users. But this fake intimacy is, in reality, a place where people can be more manipulated than ever before. Well, the advertisers know much more about us than they could before we entered it.
    But, Facebook wants you to know that it is turning. Its ads tell you so. Its PR hires tell you so.

    “While we still have more to do, we are not the same company we were a year ago,” Karim Palant, U.K. public policy manager at Facebook, said.

    But the report requests for significant changes to the way the UK regulates its elections and technology, including:

    • Stricter rules that will force tech firms to take down illegal content on their site
    • A code of ethics that defines “harmful content”
    • An independent regulator to oversee enforcement of that code
    • New laws around political advertising online

    The UK Culture Secretary Jeremy Wright will head to the US this week to meet with the heads of major tech firms, including Zuckerberg. Wright wants to talk about dangerous content online.

    risk disclosure

  • New Elon Musk’s AI Fake Text Generator is Too Dangerous to Release

    New Elon Musk’s AI Fake Text Generator is Too Dangerous to Release

    2 min read

    New Elon Musk’s AI Fake Text Generator is Too Dangerous to Release
    We are all aware of the problem of fake news online, and not only online.  

    Elon Musk-backed AI Company claims it made a Text Generator that’s too dangerous to release.

    What is it all about?

    The OpenAI has developed an AI system that can create such impressive fake news content. But the group is too afraid to release it publicly. Their fears are referring to misuse.

    They’re letting researchers see a small part of their work.

    So we cannot say they are hiding it completely. But, the group’s fear here is very weird.

    The developers used 40GB of data pulled from 8 million web pages to train the GPT-2 software. That’s ten times the amount of data they used for the first of GPT.

    This time they trailed dataset together by trolling through Reddit. And they were selecting links to articles that had more than three upvotes. When the training process was complete, they found that the software needs a small amount of text to continue writing.

    The software has trouble with “highly technical or esoteric types of content”. But when it comes to a more conversational type of writing it generated “reasonable samples” 50 percent of the time.

    “Our model, called GPT-2, was trained simply to predict the next word in 40GB of Internet text,” writes a new OpenAI blog. “Due to our concerns about malicious applications of the technology, we are not releasing the trained model. As an experiment in responsible disclosure, we are instead releasing a much smaller model for researchers to experiment with, as well as a technical paper.”

    AI is good but risking

    OpenAI, a nonprofit research company backed by Elon Musk, Reid Hoffman, Sam Altman, and others, says its new AI model, called GPT2 is so good and the risk of malicious use so high. That’s why they are breaking from its normal practice of releasing full research to the public. Instead, they will allow more time to discuss the ramifications of this technological discovery.

    How does it work? Here is one example.

    The software was supplied this paragraph:

    ”In a shocking finding, scientist discovered a herd of unicorns living in a remote, previously unexplored valley, in the Andes Mountains. Even more surprising to the researchers was the fact that the unicorns spoke perfect English.”

    Based on two sentences, it was able to continue writing a news story for another nine paragraphs in a fashion that could have seemingly been written by a human being.

    Here are the next few sentences that were produced by the machine:

    ”The scientist named the population, after their distinctive horn, Ovid’s Unicorn. These four-horned, silver-white unicorns were previously unknown to science.

    Now, after almost two centuries, the mystery of what sparked this odd phenomenon is finally solved.

    Dr. Jorge Pérez, an evolutionary biologist from the University of La Paz, and several companions were exploring the Andes Mountains when they found a small valley, with no other animals or humans. Pérez noticed that the valley had what appeared to be a natural fountain, surrounded by two peaks of rock and silver snow.”

    The Guardian was able to take the software for a test and tried out the first line of George Orwell’s Nineteen Eighty-Four: “It was a bright cold day in April, and the clocks were striking thirteen.”

    The AI program selected among the tone of the choices and proceeded with own dystopian science fiction:

    ”I was in my car on my way to a new job in Seattle. I put the gas in, put the key in, and then I let it run. I just imagined what the day would be like. A hundred years from now. In 2045, I was a teacher in some school in a poor part of rural China. I started with Chinese history and history of science.”

    What a story!!!

    Can you imagine what such a system could do, for example, with president candidate biography?

    The assumptions of this are why OpenAI says it’s only releasing publicly a very small portion of the GPT-2 sampling code.
    It’s not releasing any of the dataset, training code, or “GPT-2 model weights.”

    The OpenAI blog announces this:

    “We are aware that some researchers have the technical capacity to reproduce and open source of our results. We believe our release strategy limits the initial set of organizations who may choose to do this, and gives the AI community more time to have a discussion about the implications of such systems.”

    Fake news is the obvious potential downsides. The AI’s is unfiltered nature. It is trained on the internet, so it is not hard to inspire it to generate biased text, conspiracy theories and so on.

    “We need to perform experimentation to find out what they can and can’t do,” said Jack Clark, the nonprofit company’s head of policy. “If you can’t anticipate all the abilities of a model, you have to prod it to see what it can do. There are many more people than us who are better at thinking what it can do maliciously.”

    Yes, keep this AI away from using a bit more time, please.

    The bottom line

    AI, Artificial intelligence can be extremely useful for everyday life to the implementation in the stock market. A lot of modern tools we are using every day have some part of AI. It is a high-tech’s geeks dream to implement AI everywhere. But it isn’t possible. Something has to be done by humans.

     risk disclosure

  • Cryptocurrency Stocks – The Best to Buy in 2019

    Cryptocurrency Stocks – The Best to Buy in 2019

    Cryptocurrency Stocks - The Best to Buy in 2019Instead of buying cryptos, you can invest in it, you just have to choose will you do it directly or indirectly. Traders-Paradise explains how to invest in cryptocurrency stocks.

    By Guy Avtalyon

    Cryptocurrency stocks are continuing to attract new investors in 2019. However, most beginners have problems finding the next cryptocurrency to invest in 2019 We understand how upsetting it is when you first begin looking for cryptocurrency investments. And that’s why we want to help.

    We can understand your wondering “Should I be investing in Bitcoin or Ethereum or some other crypto?”

    We want to explain how to invest in cryptocurrency stocks.

    This is for you, beginners.

    You’ll have to decide on the way how you want to invest in cryptocurrency: directly or through, for example, the stocks, which is indirectly way.

    Then, if you want to invest directly, you’ll need to decide if you want to be in direct control of your cryptocurrency, or if you would like to use some custodial service.

    A lot of things is already said about the future of cryptocurrencies. Some people believe that the cryptocurrency period won’t last long. On the other side, the others think they’re going to be around forever.

    It is tricky to predict the future of cryptocurrencies, but what we do know is that the demand of cryptocurrencies is only increasing. One of the reasons for that is because of blockchain technology, which is the principal technology behind all cryptocurrencies.

    But before you start, follow Warren Buffett’s advice  “Never invest in something you don’t understand”. Start to read more about cryptocurrencies to go get a sense of information before you dive into the world of cryptocurrencies.

    When you start your learning task, you will find a lot of blogs and videos online. Some of them are very ignorant, but some are too difficult.

    They are either too specific or too general. The learning path isn’t always clear.

    So, let’s make it easier.

    To start investing in cryptocurrency stocks directly you’ll need:

    1. A cryptocurrency wallet. This will provide you with direct control of your cryptocurrency.
    2. A method of obtaining cryptocurrency. Honestly, you will need a cryptocurrency exchange or broker to buy cryptocurrency or to trade cryptocurrency.
    3. A method for selling cryptocurrency. Part of investing is occurring in the ability to cash out. To cash out you’ll probably need to change your cryptocurrency back to some top coin like Bitcoin, Ethereum, or Ripple. So, you’ll need access to the platform that lets you trade those for fiat currencies.

    To start investing in cryptocurrency stocks indirectly through a stock, you’ll need

    First, you’ll need to select between a limited set of options. They include:

    1. A cryptocurrency IRA.
    2. A stock that is related to cryptocurrency.
    3. A private fund which means you’ll need to be an accredited investor and meet certain capital requirements.
    4. Each method of investing in cryptocurrency has its own pros and cons.

    If you know something about the cryptocurrency markets, you then know that 2018 wasn’t an excellent year. Bitcoin has lost 74% of its value last year. The most other major cryptocurrencies have done even worse. Last year, Ripple, Ethereum, and Litecoin are down by 80%, 81%, and 85%, each.

    But, there’s still a lot of interest in blockchain technology and cryptocurrencies. So, it’s possible that we may see a flood in bitcoin or some of the other digital assets.

    That’s why, instead of investing directly in cryptocurrencies, it could be a smart idea to put your money in a business that will do just nice no matter what happens in the cryptocurrency world. And that will do even better, of course, if the crypto world has a good year in 2019.

    What are the best cryptocurrency stocks to buy in Traders Paradise’s opinion?

    1. Bitcoin Investment Trust (GBTC) 

    Barry Silbert has been a figure behind many cryptocurrency trends over many years. He was best recognized for Second Market. It was a well-known system to trade stocks in private companies. His Digital Currency Group (DCG) was originally a part of Second Market, combining a cryptocurrency trading firm called Genesis Global Trading with an asset management firm, Grayscale Investments.

    The Bitcoin Investment Trust (OTCMKTS: GBTC) brings digital currency investment to small investors. It is currently traded through what was called the “pink sheets.” The attempt to get a listing through the NYSEARCA platform having failed in September last year.

    Some investment gurus called GBTC a joke. But they had to face it has won the race and become the first publicly traded Bitcoin fund.

    Moreover, the GBTC value is 85% greater than the value of the bitcoin it has. There are reasons for this. For one, you can buy GBTC in a tax-advantaged account like a retirement account. GBTC is publicly traded, which means you can get out any time you want, and the coins are being kept safely.

    One of the primary media for cryptocurrency news, Coindesk, is a subsidiary of Digital Currency Group (DCG).
    If you are a small investor or investing in a retirement account, GBTC may be the best bet you have for profiting on the future of Bitcoin Nvidia Corporation (NVDA).

    2. Nvidia Corporation (NVDA) cryptocurrency stocks

    Even if you’re not excited in cryptocurrencies, Nvidia Corporation (NASDAQ:NVDA) is a stock worth owning. The stocks increased by nearly 70% during 2017, revenue was growing almost 40% during the same fiscal year. This company is currently possible to reach over $8 billion in revenue and take 25% of that revenue as the net income.

    Nvidia is also a very valuable cryptocurrency stock, with a market cap of $111 billion. It is almost 14 times bigger revenue estimated for this year and a tremendous 53 times earnings. High-performance graphics processors, originally designed for video games, appeared as great for the serious work of finding decryption keys that symbolize crypto-coins. But that is not the only reason to buy it.

    The best reason to buy Nvidia stock is its cloud. Data centers are now going through their first upgrade cycle, to support Artificial Intelligence (AI) applications like voice interfaces, self-driving cars, and the Internet of Things (IoT).

    Instant response is the key here. The low-end processor clouds like those of Amazon.com, Inc. (NASDAQ:AMZN), and Alphabet Inc (NASDAQ:GOOG, NASDAQ:GOOGL), just don’t have the processing power needed for the next decade’s growth markets.

    Graphics chip leader NVIDIA has done greatly well in recent years thanks to booming sales for PC gaming and data center applications.

    3. Square (NYSE:SQ)

    Cryptocurrency stocks Square has developed quite a bit over the past few years. At first, it was a niche manufacturer of payment processing hardware for small businesses into a lender.

    Its growth isn’t only impressive. It continues to rise. The company’s revenue increased by 68% year over year in the most recent quarter. Also, the payment processing volume continues to rise, the services-based revenue is 155% higher than a year ago. Also, there is the Cash App, a great source of potential income.

    Square allowed its Cash App customers to begin buying and selling Bitcoin last year. When cryptocurrencies start to experience a recovery, it could evolve into a significant part of the market.

    This is our opinion based on personal experience, paste performances, and data analysis. You may have some other feeling about where to invest. And it is alright. That hunch you have could lead you to the incredible gains. But, our suggestion is to read and examine.

     

  • Swedish Krona set on volatile January Inflation

    Swedish Krona set on volatile January Inflation

    2 min read

    Swedish Krona set on volatile January Inflation
    February 18, 2019
    The Swedish krona is the worst-performing significant currency this year. It faced volatility on Swedish inflation data Tuesday. It looks the markets may be underestimating the risk for a surprise.

    According to SEB AB January is the month of the year with the most volatile inflation data. But a check of one-week price fluctuations in the euro-krona exchange rate implies traders are relatively satisfied.

    One-week implied volatility in the cross is trading around 50 basis points below its one-year average. The relative premium to own exposure to short-term risks stands below par. That suggests investors can hedge themselves through insignificantly under-priced option plays.

    The Swedish krona has been damaged this year by doubt that the country’s central bank can stick to a plan to hike interest rates in the second half of the year.  Karl Steiner, a strategist at SEB said that Inflation is the second-biggest driver for the krona among Swedish data and events, after Riksbank policy announcements.

    “Stars seem to be aligning for out-sized moves in the krona considering the event risks that lie ahead,’’ said Fredrik Lockne, an options specialist at SEB. “Implicit volatility looks rather cheap, in particular over the two-week tenor which captures both inflation and growth data.’’

    January data has the obvious inclination for downside surprises in headline inflation, at 71 percent of the time over the past seven years, SEB said. Swedish consumer prices are forecast to have dropped 0.7 percent in January on a monthly basis, from a 0.4 percent rise in December, as many stores cut prices after Christmas holidays. Inflation is forecast at 2.2 percent in annual terms, versus 2.0 percent in December.

    Swedish Krona set on volatile January Inflation 1

    Image source Bloomberg: Swedish krona

    Best Exchange Rate: 10.6955 on 29/08/2018
    Worst Exchange Rate: 0 on 18/02/2019
    Mid Exchange Rate: 10.3044 on 17/07/2018

    Other currencies:

    EUR/USD

    The trend is bearish in the 1-hour chart. Intraday resistance is at 1.1341 price level. This means, as long as the price stays below 1.1341 resistance level, you should look for sell trades. If bullish candlestick closes above 1.1341 critical resistance level, then down trend is going to end.

    GBP/USD

    The trend is bearish in the 1-hour chart. Intraday resistance is at 1.2995 price level. As long as the price stays below 1.2995 resistance level, you should look for sell trades. If bullish candlestick closes above 1.2995 resistance level, which stands as critical, then down trend is going to end.

    USD/JPY

    The trend is bullish in the 1-hour chart. Intraday support is at 110.08 price level. As long as the price stays above 110.08 support level, you should look for buy trades. If bearish candlestick closes below 110.08 critical support level, then up trend is going to end.

    USD/CAD

    The trend is bullish in the 1-hour chart. Intraday support is at 1.3195 price level. So, as long as the price stays above 1.3195 support level, look for buy trades. If bearish candlestick closes below 1.3195 critical support level, then up trend is going to end.

    USD/CHF

    The trend is bearish in the 1-hour chart. Intraday resistance is present at 1.0110 price level. So, as long as the price stays below 1.0110 resistance level, look for sell trades. If bullish candlestick closes above 1.0110 critical resistance level, then down trend is going to end.

    risk disclosure

  • Wild ride: Dow Jones Rise 250 Points

    Wild ride: Dow Jones Rise 250 Points

    2 min read

    Wild ride: Dow Rise 250 Points
    Stocks rose on Friday amid increasing hopes for a U.S.-China trade deal as equities were on pace to post another solid weekly gain.

    According to CNBC, The Dow Jones Industrial Average jumped 250 points as J.P. Morgan Chase and Caterpillar outperformed. The S&P 500 gained 0.76 percent, led by financials and tech. The Nasdaq Composite advanced 0.4 percent.

    The 30-stock Dow and Nasdaq were both on pace to post their eighth consecutive weekly gain. The S&P 500, meanwhile, was on track for its seventh weekly gain in eight. The indexes were all up more than 1 percent entering Friday’s session.

    Here are the hottest things to know about stocks

    • The Dow Jones Industrial Average, S&P 500 and Nasdaq posted their fourth straight day of gains.
    • The Dow has added more than 1,000 points from Friday to Wednesday.
    • Big gainers on Wednesday included Chipotle Mexican Grill, Fossil Group and Nektar Therapeutics.
    • The Consumer Price Index rose 0.5% in January, the strongest monthly increase since January 2017.
    • The 10-year Treasury note hit 2.91%, a four-year high.

    Stocks ended with sharp gains on Wednesday, February 14, after falling earlier in the session following reading on U.S. consumer inflation.

    The Dow Jones jumped

    The Dow Jones Industrial Average jumped 253 points or 1.03%. The S&P 500 rose 1.34% and the Nasdaq was up 1.86% as technology shares outperformed.

    The leading gainers on the Dow Wednesday were Nike Inc. (NKE – Get Report), Cisco Systems Inc. (CSCO – Get Report) and JPMorgan Chase & Co. (JPM – Get Report). They rose 3%, 2% and 2.3%, respectively.

    Daniel Deming, managing director at KKM Financial said: “I am a bit surprised the market has been able to maintain this upward trajectory at the level that it has… We had a little hiccup last week, but that was quickly priced out of the market. That tells me there is still money trying to seek a higher return, or at least take on more risk.”

    What did cause this Dow Jones jump

    Chinese President Xi Jinping said trade talks between the U.S. and China will continue next week in Washington. This comes after a U.S. trade delegation which was led by Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer visited Beijing this week.

    China and the U.S. are trying to hit a deal before a March deadline. If they don’t reach a deal by then, additional U.S. tariffs on Chinese goods could take effect. President Donald Trump, still, is considering pushing back the deadline by 60 days to give negotiators more time to reach a deal.

     

    Core inflation in the US in January rose 0.3%.

    Wall Street will be looking to the data to help it gain signs about the pace and trajectory of interest rate hikes from the Federal Reserve.

    “This is a strong number. What’s going to be interesting is how financial markets react,” said Luke Bartholomew, investment strategist at Aberdeen Standard Investments.

    “There’s a risk that this could pour fuel on the fire of last week’s market selloff.”

    Bartholomew added that the “Fed is now very likely to follow through on its plan to raise rates again in March.”

    The 10-year Treasury note yield rose to 2.91% on Wednesday, a four-year high.

    The Cboe’s Volatility Index often referred to as the “fear gauge,” fell back below 20.

    U.S. retail sales in January fell 0.3%, but economists had expected a gain of 0.2%. It looks like a not good hint.

    The Friday moves come after the Dow and S&P 500 fell on much weaker-than-forecast retail sales numbers.

    On the data front Friday, industrial production for January fell 0.6 percent. Economists, however, expected an increase of 0.3 percent. They failed once more.

    Consumer sentiment data are scheduled for release later on Friday.

    risk disclosure

  • Nasdaq’s loophole in rules is under investigation

    Nasdaq’s loophole in rules is under investigation

    2 min read

    Nasdaq’s loophole in rules is under investigation 3
    According to The Wall Street Journal,  Nasdaq’s loophole in rules is under scrutiny after a roller-coaster ride in the stock of one small company highlighted how firms can go public without ample shares to trade.

    So, what happened?

    Phunware Inc., a software company preparing to launch its own cryptocurrency, climbed about 3,750% over six trading days to hit an intraday high of $550 a share on January 10. Only 144,000 shares were eligible to freely trade during that period, according to the company. The stock closed at $113.41 on Tuesday.

    Nasdaq’s loophole in the rules 

    Nasdaq’s rules require companies listed on the exchange to have at least one million publicly held shares. The problem is that can incorporate shares which are restricted from trading. Such shares are those owned by employees or early investors who may be required to hold the stock for a period before selling.

    The important fact is that Phunware, Inc. has not issued dividends in more than one year.

    The important fact is that Phunware Inc. has not issued dividends in more than one year.

    Their stock has been volatile due to the small supply of shares that can be freely traded.

    Take a look at the chart below.

    Nasdaq’s loophole in rules is under investigation

    Image: screenshots from Finance Yahoo

    As soon as this week, Nasdaq will move to close the loophole by proposing to exclude restricted shares from the number that firms need to qualify for a listing, according to Nasdaq spokesman Joe Christinat. The Securities and Exchange Commission would need to approve the rule change.

    What really is Nasdaq’s loophole

    Shares of Phunware (NASDAQ: PHUN) rose 1,988% higher in January, according to data from S&P Global Market Intelligence. The provider of development tools for mobile apps, including a unique blockchain-based security token known as PhunCoin, started the month as a penny stock with a $310 million market cap.

    By the end of January, Phunware’s stock closed at nearly $300 per share and a total market value of $9 billion.

    Nasdaq’s loophole in rules is under investigation 2

    Image: screenshots from Finance Yahoo

    The surge started with Phunware establishing its merger with capital investment firm Stellar Acquisition III. The deal led Phunware onto the public markets after a decade of operations as a private company. During the period of two and a half years, they were collecting funds of Stellar Acquisition’s capital to use without a clear purpose.

    Actually, Phunware went public through an unusual backdoor combination.

    Blank-check company

    The Austin-based company merged with a blank-check company that already had a listing on the Nasdaq. Blank-check companies, they are also called special purpose acquisition companies, or SPACs. Their purpose is to raise money from public investors with the goal of using the proceeds to acquire an existing business. The arrangement has gained recognition in the past several years, and Nasdaq is the most popular exchange for blank-check listings.

    Share prices continued to soar as Phunware announced a handful of new patents and developer programs. That programs topped off by a launch platform for a public version of PhunCoin and a blockchain partnership with the powerful IBM.
    The stock has settled down a bit in February and is now trading just 752% higher since the new year.

    The rule change needs approval

    Nasdaq’s loophole has to be closed. The Securities and Exchange Commission would need to approve the rule change. “It shows a need for rethinking these rules,” said James Angel, a finance professor at Georgetown University whose research focuses on securities markets, in his statement for The Wall Street Journal. “We need to have enough shares in public circulation so we don’t have dislocations like we have seen here with Phunware.”

    Phunware recorded revenue of $19.1m and a net loss of $2.6m during the six months ended June 30, 2018. But, Phunware lost $25.9m in 2017. Before the merger, its auditor, Marcum, said that there was “substantial doubt” about its ability to remain solvent.

    Phunware is not a unique case.

    Some other lightly traded stocks that emerged from deals with Nasdaq-listed blank-check companies have also experienced wild price swings.

    Organogenesis Holdings, a developer of surgical and sports medicine products, resumed trading January 8 after merging with a SPAC late last year. The stock opened the following day at $15.60 a share and rose to an intraday high of $310.90 before closing at $82.35. Just 28,209 shares changed hands that day, according to FactSet.

    A large portion of Organogenesis’ shares was restricted and unavailable for immediate trading after the company’s merger with Avista Healthcare Public Acquisition.

    About 4 million Organogenesis shares were unrestricted on Jan. 8. Since then the number has risen to approximately 19 million, said Organogenesis spokeswoman, but she declined to comment on trading activity in the company’s stock.

    The market is still getting excited about crypto

    Phunware’s surge is proof positive that the market still can get excited about blockchain tools and cryptocurrency stocks. But we don’t have any actual business results available for this company yet. Is it an empty bubble with zero long-term value.? Or are we are witnesses of a future titan in the mobile app development market? Only time will tell. It is smart to stay on the sidelines until we know more about the new company’s business plans.

    The bottom line

    Truth is that blank-cheque companies are risky for investors because of their lack of operating history. But they are charming to exchanges, which compete for SPAC initial public offerings. About two years ago Nasdaq proposed to correct its rules to make it easier for blank-check companies to list on the exchange. But, facing shaded examples, Nasdaq ended up withdrawing the proposal last year.

    Phunware, together with its managers and early investors, are now preparing to make available an additional 21 million shares, which would significantly increase the float of the stock, according to a regulatory filing made on February 5.

    risk disclosure

  • Managing Money Online – How Difficult It Can Be?

    Managing Money Online – How Difficult It Can Be?

    Managing money online - nightmare or bright future 2
    Managing money online can be troublesome. It is smart to use some app to work for you

    By Guy Avtalyon

    Managing money online can be a tricky game. Cryptocurrencies, often associated with “geeks” or with those who want to get money quickly, have become a popular form of payment.

    According to a recent report by Kaspersky Lab, every tenth user (13%) has used crypto for purchases so far. However, cybercriminals also accept this trend and increasingly target crypto-markets. By transforming the old threats, these new scammers attack investors.

    Kaspersky Lab examined the habits of 12,448 consumers in 22 countries.

    The crypto users are at constant risk of losing their savings stored through this technology. The hackers develop sophisticated techniques for accessing others’ finances. There is an increasing number of companies offering cryptocurrencies as a payment method, where they are now accepted by both retailers and, for example, food stores.

    Interest for crypto is raising, and even major sports teams are joining on crypto-exchanges. However, people show more interest in using cryptos for investment as well as for spending money. Hence, their digital assets are increasingly subject to theft. Incidents, where stolen digital tokens worth nearly $ 530 million, are known.

    Managing money online

    Visiting the favorite online retailers is fast growing the most comfortable way to make must-have shopping.  Their advantages are fast-tracked delivery, exclusive discounts, and free returns. This made online shopping an interesting and vital part of the present life.

    It’s determined that three-quarters of us have shopped online. Even browsing for goods has become a popular pastime.

    Frankly, all of us are doing it when we are on our breaks, traveling to work, or sitting in front of the television.
    The e-commerce boom has made it easy to spend money online. You can buy almost everything online, from groceries and gifts, clothes, through to paying service providers, or buying a yacht. The opportunities are infinite and the variety of payment options is expanding.

    Managing money online - nightmare or bright future 1

    The image source: kaspersky.com

    The majority of retailers are encouraged us to use whatever payment method we prefer. Of course, in order to stop us from moving elsewhere. From credit card transactions and bank transfers to cryptocurrency, subscriptions, and loyalty points, we can pay for assets and services in more ways than ever before.

    A large-scale spectrum of payment options offers us both choice and flexibility. But it also gives us the difficulty of protecting our financial details in various areas.

    Kaspersky Lab figures suggest that 60% of consumers are worried about online banking fraud. The majority of people having various online shopping accounts, digital wallets, and login credentials. So, it can be a big challenge to hold everything in order and remember every PIN, password, and code.

    Nowadays it isn’t so easy to stay in control.

    Some of us have the problem to remember the email address we used to register with a particular service.

    Kaspersky Lab has uncovered how people manage their finances online. They examined their attitudes toward financial cyber threats. In detail, how safe their money is, and how they value it against the security or other sensitive information.

    And they revealed the risks people are prepared to take when making transactions online. What do the people do to protect their credentials to avoid their hard-earned money to fall into the wrong hands?

    Is our money safe?

    Online shopping now is standard. So, cybercriminals are ready to take advantage of those who fail to protect themselves online. You can’t even imagine how vulnerable our financial information is online.

    For example, in October 2018, American HSBC customers’ account details were accessed by hackers through an advanced breach. That was affecting hundreds of thousands of people. This is a great example of how important is to take control of our own security and not relying on others. No one will keep our information safe as we can do it by ourselves. What can we do ourselves to minimize the chances of becoming a target?

    Trying to write down your financial credentials puts you at risk. Writing a credit card PIN in a notepad, or saving a bank account passcode on a laptop, could expose you more to attack. Hence, result in monetary losses.

    Kaspersky’s survey revealed that a fifth of people (20%) still rely on their smartphone or other devices as a way of noting down private banking information. This is the potential to fall into the wrong hands.

    Managing money online - nightmare or bright future

    The image source: kaspersky.com

    How to remember all our passwords

    Kaspersky Lab found a third of people (31%) still struggle to remember their online banking credentials, admitting that they have either forgotten them or do not even try to remember them.

    Signing up for subscription services is also incredibly tempting. Because it gives us the opportunity to quickly access our favorite television shows, movies, and products. The registration is easy, but it can become very tricky to track spending. 32% of people who answered the survey do not always remember every service or automated payment (direct debit) they have subscribed to. Signing up for two streaming services, a few magazines, and a gym plan can quickly lead to costly fees from multiple brands.

    Password panic when managing money online

    Kaspersky Lab statistics show that more than half of people (52%) are worried about being vulnerable when buying products or making financial transactions online. This result means that a small number of them would prefer if this could be done more securely. The survey also revealed that nearly half of the people (46%) would like to pay for goods online more often. All they need is a reliable protection for these financial transactions.

    A third of shoppers (32%) revealed that they had a financial incident in the past year. This left many of them (26%) out of pocket. As we all know from personal experiences, they were not compensated by any payment provider or retailer involved.
    The good news is that the strong majority of people (83%) believe the most important thing is to set a strong password for online banking, speaking about managing money online.

    Bottom line

    Managing money online, keeping expenses in order, and planning a budget can be tough. You can use personal finance sites that do everything from tracking your spending to helping you get out of debt to managing your bills for you.
    Best of all, if they’re all free.