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About inthemoneystocks

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  1. As you all know, crypto-currencies have been one of the hottest topics around these days. Even the J.P. Morgan Chase (NYSE:JPM) CEO, Jamie Dimon, has addressed it on numerous occasions in the past several months. The price of Bitcoin and other crypto-currencies have gained market share in the past several years. While many people call it a bubble and a fad it has weathered several storms and is now even making me a believer that it could be here to stay. Investors and users in crypto-currencies should note that they will be very volatile as they become more mainstream . It is basically a growing pain for this new technology and almost every new idea will go through big ups and downs in its infancy. Here are three reasons why crypto-currencies could be here for the foreseeable future. 1. Distrust in governments. Many people around the world are losing their trust in governments. Just look at what has happened around the world in Syria, Venezuela, Greece, Cyprus, Libya, Zimbabwe and many others nations. Even in the United States there is more division and distrust between the citizens and politicians than most can remember. This distrust will only continue over the years to come. 2. Bitcoin and other crypto-currencies use blockchain technology. This technology is a basically a digitized public ledger of all crypto-currency transactions. It is important to understand that Bitcoin isn’t regulated by a central bank or any government authority thus eliminating a need for a middleman or third party to process trade or payments. The completed transaction is publicly recorded into blocks and eventually into the blockchain. It is then verified and relayed by other Bitcoin users. The bottom line, people are tired of paying a middleman for there transactions and this efficiently eliminates the middleman. This is why the large banks are not favoring Bitcoin and other crypto-currencies. 3. It is simple to trade peer to peer. You can trade or exchange with anyone around the world in just minutes. Companies are also starting to embrace Bitcoin and other crypto-currencies because they will no longer have to pay the credit card companies a transaction fee which is usually between 3 to 5 percent of the transaction. Again, the middleman is eliminated. Nicholas Santiago InTheMoneyStocks
  2. The price of gold often tells us many things. In 1999, when gold began a breakout rally into its 2011 top it told us that the U.S. Dollar Index was about to crater lower. Then in September 2011, gold topped out signaling deflation in most every commodity. As you can see, the pattern here is that gold will generally rally when the U.S. Dollar weakens and decline when the U.S. Dollar strengthens. Recently, gold has been surging higher in 2016 while the U.S. Dollar has held up rather well. Gold is the best performing asset in 2016. The precious metal is up about 20 percent this year alone. Could gold be signaling inflation is coming in a major way? Perhaps, the precious metal increase is just protection against negative interest rates that are already taking form in Europe and Japan. Either way, gold is soaring higher despite the commercial money being heavily short the precious metal. Traders should note that gold is very overbought in the near term, but it could be trying to send us a message of things to come. Traders that want to track the price action in gold can use the SPDR Gold Trust (ETF)(NYSEARCA:GLD), iShares Gold Trust (ETF) (NYSEARCA:IAU), and the Market Vectors Gold Miners ETF (NYSEARCA:GDX). Nick Santiago inthemoneystocks
  3. As many traders and investors know, the U.S. Dollar Index (DX) broke out in September 2014. At that time, the U.S. Dollar Index was trading around the $83.00 level. Today, the U.S. Dollar Index is trading around $96.90 per contract. Just so that new readers understand the U.S. Dollar Index is a measure of the value of the United States dollar relative to a basket of six foreign currencies. These currencies include the Euro, Japanese Yen, British Pound Sterling, Canadian Dollar, Swedish Krona, and the Swiss Franc. The Euro is the most heavily weighted currency again the U.S. Dollar in the index at 57.6%. That is why the U.S. Dollar Index chart and the EUR/USD (Euro vs U.S. Dollar) chart look inverse to each other. Many people in the investing world worry that the strong U.S. Dollar Index will hurt global exports. Well, the truth is that they will hurt global exports for the United States. However, the strong U.S. Dollar index will help to keep commodity prices low. Just look at a chart of crude oil and you will see that it has plunged as the U.S. Dollar Index has strengthened. You see, most of the oil in the world is priced in dollars and in order to buy a barrel of oil you must use U.S. Dollars. So it is safe to say that the strong U.S. Dollar is the primary reason for the decline in crude. Many people think that the U.S. Dollar Index is rallying higher since 2014 because it is a good currency, but that is not the case. The U.S. Dollar Index is rallying because other central banks around the world such as the European Central Bank, Bank of Japan, and the Peoples Bank of China are printing money in one form or another. This is causing investors abroad to flee other currencies and buy U.S. Dollars. This action by foreign investors is unlikely to change anytime soon. Now let me be clear, the U.S. Dollar Index is not going to surge higher in a straight line, that is not how markets operate. The trend in the U.S. Dollar Index should remain up despite having some pullbacks along the way. The current large pattern on the U.S. Dollar Index chart signals a move to the $105 level and possibly higher. Now a Federal Reserve interest rate cut could cause the U.S. Dollar Index to retreat, but it is likely that other central banks around the world would also print more money to counter that move. So either way, it is going to be difficult to find a reason at this point in time for sharp dollar decline. The bottom line, the U.S. Dollar Index should be a lot higher a year from now. Nick Santiago InTheMoneyStocks
  4. If you ask any trader or investor what is the most important currency to follow they would probably say the U.S. Dollar. After all, the U.S. Dollar is the world's reserve currency. If someone in Asia, or Africa wanted to buy a barrel of oil they would need to convert their money into U.S. Dollars in order to pay for that barrel of oil. Almost every major commodity is traded in U.S. Dollars, so it is understandable why the U.S. Dollar should be followed. If a trader or investor trades the U.S. Dollar Index, they are trading the U.S. Dollar verse a basket of six other major currencies, including the British Pound, Euro, and the Japanese Yen. Do you know which currency is most important that trades against the U.S. Dollar at this time? At this time, the most important currency pair in the market is the U.S. Dollar verse the Japanese Yen (USD/JPY). That is right, the Japanese Yen is the key to the stock market at this time. When the USD/JPY chart moves higher it means that the Japanese Yen is moving lower. So why would a weaker Japanese Yen help the major stock indexes in the United States move higher? This is a good question, the answer is that the large financial institutions have a highly leveraged bet that Japan will continue to print more and more money to try and create inflation. Since the late 1980's Japan has suffered from deflation. In 2012, the Japanese government and the Japanese central bank have vowed to implement easy money policies like the Federal Reserve to try and create inflation. The big hedge funds are aware of this, and now they are all in on this bet of selling short the Japanese yen, or basically buying USD/JPY. Recently, the Japanese Yen has strengthened against the U.S. Dollar. So is it any surprise why the U.S. stock markets have been tumbling lower lately? This currency pair (USD/JPY) is literally moving the stock market in the United States and Europe. Just look at any chart of the USD/JPY and the S&P 500 Index and you will see how the two charts basically trade in lock step with each other. You see, if the USD/JPY chart falls or declines (yen strengthens against the dollar) the leveraged institutional money can no longer buy the S&P 500 Index, Dow Jones Industrial Average, or any other major stock index. It is all based on market liquidity and a leveraged trade. All eyes should be glued to the USD/JPY chart as it tells us everything we need to know at his time. Nicholas Santiago