A reminder about tomorrow’s Seasonality Tool event … Bitcoin briefly retakes $100K … altcoin season is brewing … the latest on Trump tariffs and inflation Before we jump in, a reminder that tomorrow morning at 10 AM ET, Keith Kaplan is hosting a webinar that dives into more detail about TradeSmith’s brand-new Seasonality Tool. It offers investors one of the most impressive quantitative edges that we’ve ever seen. For newer Digest readers, Keith is the CEO of our corporate partner, TradeSmith, and his new Seasonality Tool is TradeSmith’s latest data-centered software creation. It centers on the repeating cycles in the market. In short, many stocks display predictable, seasonal patterns. For example, for the past 15 years, Nvidia shot up during a 15-day time span, starting October 24, every single year. There was a 100% hit rate across that entire period. Imagine having this information ahead of time. Now, imagine having this information for dozens of stocks throughout the year. TradeSmith’s Seasonality Tool scans 50,000 data points daily to pinpoint the best days to buy and sell individual stocks. No more guessing – just actionable insights. Keith and his team back tested the Seasonality Tool over an 18-year period, concluding that these seasonal trades delivered 857% in total growth. That’s more than twice what the S&P delivered over the same period. Even in 2007, the strategy’s worst year, it delivered an annualized return of 37.9%. Tomorrow morning at 10 AM ET, Keith will provide all the details and do a walk-through of how this new quant tool can make a huge difference in your portfolio this year. To reserve your seat, click here and we’ll see you tomorrow. Recommended Link | | In May 2024, Legendary Wall Street money manager Louis Navellier predicted that Trump would win and trigger a massive boom. He was right! Just in the first week after Trump’s win, many stocks jumped by double and even triple digits. But now he’s issuing this NEW warning about Trump’s inauguration. | | | Switching gears, Bitcoin retook $100,000 yesterday and bullish spirits are returning to altcoins Yesterday, Bitcoin broke above $100,000 for the first time since before Christmas, topping $102,000. As I write Tuesday morning, the granddaddy crypto is pulling back, trading at just under $98,000. Meanwhile, many smaller altcoins roared higher yesterday but are easing back today. To get us all on the same page, Bitcoin exploded higher after Trump’s win in November. By December 17, it set an all-time high of roughly $108K then promptly crashed about 15% to $91K by the end of 2024. Here’s what we wrote mid-crash: We’re seeing a course correct that’s par for the course for Bitcoin. Too much exuberance, too quickly, leads to froth that results in a profit-taking selloff. This transfers Bitcoin from weak hands to strong hands where we begin the cycle over again. Bottom line: A 57% explosion that brings us to the massive psychological level of $100,000 requires time to digest. We need a pullback to regroup before a wave of renewed buying pressure can help Bitcoin achieve “escape velocity,” pushing it beyond the gravitational pull of $100K. While we can’t guarantee that we’ve begun the start of the push that leaves $100,000 in the rearview mirror, history suggests that such a surge is coming. And when it does, our crypto expert Luke Lango sees $200,000 in our future: We called Bitcoin hitting $100,000 in 2024, and now, we’re calling for Bitcoin to push toward $200,000 this year. Our technical and fundamental analysis suggests that 2025 will be the last year of this Fourth Crypto Boom Cycle. Now, Luke is warning about increased odds of a crash in 2026/2027. But before then, we’re likely to see the final blowout top of our current cycle. And if you know crypto, you know that the final stages of a cycle mean the greatest wealth typically comes from altcoins, not Bitcoin. Watch for the leadership change in crypto – and invest accordingly Early in a crypto cycle, most money flows into Bitcoin as investors lick their wounds and regroup in the wake of the prior crash that spawned a new cycle. But as the cycle continues, gains snowball, investor confidence returns, and animal spirits take over. Eventually, emboldened investors begin allocating to smaller altcoins in search of bigger gains. Leadership rotates away from Bitcoin, into altcoins. And at the end of the cycle, when “full bull” rules the day, the most popular altcoins can explode thousands of percent. That’s what happened in 2021, and Luke believes we’re likely to see a similar blowout in 2025: In recent memory, the best year for the broader crypto markets was 2021. That was the year of the altcoins. In that year, more than 20% of the top 300 altcoins by market cap soared more than 1,000%. You saw gains like ~40,000% from Gala (GALA/USD) and ~25,000% from CEEK VR (CEEK/USD). Anyswap (ANY/USD), XYO (XYO/USD), and Axie Infinity (AXS/USD) all rose more than 15,000%. Sandbox (SAND/USD), Polygon (MATIC/USD), and Terra (LUNA/USD) all popped more than 10,000%. Solana (SOL/USD), Flux (FLUX/USD), Fantom (FTM/USD), Kadena (KDA/USD), Telcoin (TEL/USD), and BakeryToken (BAKE/USD) all jumped over 5,000%. In other words, tons of altcoins posted major gains in 2021. We think something similar could happen in 2025. That’s especially because signs have started to emerge suggesting that we are shifting into so-called “altcoin season” – the part of the crypto boom cycle when altcoins start to outperform Bitcoin. For one such sign, I’ll point you toward what’s happening with “Fartcoin” (yes, you read that correctly) The joke crypto began as a parody but has exploded in value in recent days. As I write, it has a market cap of $1.15 billion. For context, that’s more than the market caps of Office Depot, Guess, Ethan Allen, ZipRecruiter…and 1,000 companies in the Russell 3000 Index. This is what late-stage crypto bullishness can look like – a parade of absurdity. Now, you can thumb your nose at it (and deservedly so), or you can recognize that, absurd as it is, there’s money to be made. Potentially, a lot of money. As of yesterday, Fartcoin was up 620% over the prior month. That turns $500 into more than $3,000. That’s goes a long way to paying down that Christmas credit card bill. Bottom line: There are growing hints that the crypto bull is widening into altcoins. Recognize what that means for where we are in the cycle and position yourself accordingly. Recommended Link | | Tomorrow at 10 am ET, fintech genius Keith Kaplan unveils a breakthrough new system that could double your portfolio in today’s disconnected market. A new way to spot the biggest jumps on 5,000 stocks, BEFORE they occur, with 83% backtested accuracy. Including 2 free picks in a major event backed by three Wall Street legends. Click here to reserve your spot now. | | | Finally, keep your eye on trade wars and tariffs Last week brought a headline that many investors missed. From Reuters: China adds 28 US entities to export control list In short, China is banning the export of certain items to these 28 companies which include General Dynamics, Boeing Defense, Space & Security, Lockheed Martin, and Raytheon Missiles & Defense. Here’s more from CBS News: "It really does seem to be a warning shot — that escalation in U.S. policies against China, particularly under Trump, will be met with a more aggressive response," Jesse Schreger, an associate professor of Macroeconomics at Columbia Business School, told CBS MoneyWatch. "China is signaling it will not take tariffs passively." In response, a rumor circulated over the last few days that president-elect Trump might scale back his proposed tariffs. Not so much. Here’s Trump yesterday on Truth Social: The story in the Washington Post, quoting so-called anonymous sources, which don’t exist, incorrectly states that my tariff policy will be pared back. That is wrong. As I write, the tariff plan we’ll get under Trump isn’t completely clear. Back in November, Trump said he would put 25% tariffs on imports from Mexico and Canada and additional 10% tariffs on China unless they implement new policies to stop migrants and illegal drugs coming to the US. In the past, Trump has suggested a 60% tariff on all goods from China. Though the specifics are presently unclear, if any version of these tariffs is implemented, it risks creating upward pressure on inflation for all sorts of consumer goods. This has had the market worried in recent weeks. Luke believes that such fears – though warranted – are overblown: We think excessive tariffs are a risk to the markets this year, but we think the likelihood of that risk materializing is low – and in the absence of that risk, stocks should soar yet again this year. It will be interesting to see how Trump handles a significant resurgence in inflation if it happens. He seems dead set on unleashing the U.S. economy through deregulation and lower corporate taxes. A substantial price hike for a litany of consumer goods (via tariffs) runs counter to the redlining economic output he appears to want. By the way, legendary investor Louis Navellier believes that as soon as Trump takes office on January 20, he’s going to sign several executive orders that will trigger a melt up for certain stocks during the first 100 days of his administration (and some meltdowns). During Trump 1.0, Louis’ stock rating system picked all of the top 30 performing stocks. Louis believes his system is going to repeat under Trump 2.0. You can learn more about Louis’ stock rating system and his Trump positioning right here. We’ll keep you updated on the latest with tariff/trade war chatter – and by extension, what that could mean for inflation As I write Tuesday morning, Truflation.com puts real-time inflation at 2.94% – nearly 50% higher than the Fed’s goal – and inching higher. Source: Truflation.com Bottom line: We’re less than two weeks away from Trump taking over. Get ready for fireworks! Have a good evening, Jeff Remsburg |
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