For the first time ever astronomers around the world were treated to an astonishing event in outer space called a 'Kilonova.'
Two dead stars known as neutrons crashed into each other at high speed. The stars were relatively small (just about 12 miles in diameter) but extremely dense. Some scientists estimate that a single teaspoon of the star's substance would weigh a billion tons on Earth.
The outcome of the collision was the creation of copious amounts of metals that are extremely rare here on earth like gold and platinum. The sight is being hailed as one of the biggest advances in astrophysics and even answers the age old question "where does gold come from?"
Some bitcoin extremists on the web were quick to point out that gold may not possess as much rarity as it used to and therefore is no longer the best store of value as it was throughout history.
However, the Kilonova did take place approximately 130 million light-years away. So until we invent interstellar travel gold's status as a backup monetary system and safe haven remains solid.
Today's Highlights
Dollar Strength
Carney Today!
IBM (NYSE:IBM) Steps on Ripple
Please note: All data, figures & graphs are valid as of October 17. All trading carries risk. Only risk capital you can afford to lose.
Market Overview
Stocks are generally positive today as the global equity bubble reaches ever higher. As we've mentioned most analysts feel that stocks are expensive but that this overvaluation may continue for up to two years.
The US dollar is also making a move of strength lately and is up sharply against its peers over the last 30 days.
Over the long term, though, this move in the dollar is simply a bounce against a larger downward trend that's been happening since Donald Trump took office.
Of course, Trump's weakening of the dollar could also be seen as a small reversal from the upward trend that's been forming over the past decade.
Today's Event
The highlight today will most likely be a speech from the Bank of England Governor Mark Carney, who will be testifying before the Treasury Select Committee in London.
Traders want to know if indeed Mark will be raising the English interest rates at their meeting next month. Currently the market is placing an 83% chance of a hike on November 2nd.
Furthermore, if indeed the rates are raised, investors want to understand the future path of monetary policy in the UK. Will this hike be a "one and done" or are we on the path to further hikes going forward?
In the wake of the referendum, the BoE cut interest rates near zero to try and cushion the Brexit blow. Now that it's clear that the blow is less than expected many economists feel that it's time to reverse that move.
The GBP/USD is strengthening this morning in anticipation but if Carney does indeed want to sustain these moves, he's gonna need to be a bit more aggressive than he's been to date.
Ripple Short
Ripple's first annual Swell conference is well underway. No doubt everyone there is very excited about the recent announcement from the Gates Foundation that they will be using Ripple's technology in their new efforts to open the world of banking to billions of people.
Just before the conference started though there was another unrelated announcement that could affect the price as well. The tech giant IBM has just made public their new Hyperledger Blockchain with the goal of speeding up international interbank transactions.
This sounds extremely similar to Ripple's goal, which is to "replace the Swift system that banks currently use to send funds."
Now, I'm no bank manager but I do believe that most big banks would be quicker to work with an established company like IBM than with even the most successful startup.
As far as the technical analysis of Ripple's XRP token goes, we are just near the top of a huge price range from 15 cents to 30 cents.
On top of all that, the top-most copied Cryptotrader in eToro has just announced on his wall that he's going for a big short sell with the anticipation of a price drop.
Of course, short sell trading is risky and cryptotrading is even more risky. So as always please be sure to diversify your investments and build a proper portfolio.
Let me know if you need any help with that. Today I'll be holding a webinar to discuss the markets and portfolio positioning with our top equity clients. If you are one of them, feel free to join in at: etoro.tw/Webinar
Let's have an amazing day!!
@MatiGreenspan
eToro, Senior Market Analyst
Disclosure: This content is for information and educational purposes only and should not be considered investment advice or an investment recommendation. Past performance is not an indication of future results. All trading carries risk. Only risk capital you're prepared to lose.