Using Veritas to Construct the "Per…

29-04-2017 Hits:82241 BoomBustBlog Reggie Middleton

Using Veritas to Construct the "Perfect" Digital Investment Portfolio" & How to Value "Hard to Value" tokens, Pt 1

The golden grail of investing is to find that investable asset that provides the greatest reward with the least risk. Alas, despite how commonsensical that precept seems to be, many...

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The Veritas 2017 Token Offering Summary …

15-04-2017 Hits:77843 BoomBustBlog Reggie Middleton

The Veritas 2017 Token Offering Summary Available For Download and Sharing

The Veritas Offering Summary is now available for download, which packs all the information about Veritas in a single page. A step by step guide to purchasing Veritas can be downloaded here.

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What Happens When the Fund Fee Fight Hit…

10-04-2017 Hits:77418 BoomBustBlog Reggie Middleton

What Happens When the Fund Fee Fight Hits the Blockchain

A hedge fund recently made news by securitizing its LP units as Ethereum-based tokens and selling them as tradeable (thereby liquid) assets. This brings technology to the VC industry that...

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Veritaseum: The ICO That's Ushering in t…

07-04-2017 Hits:82157 BoomBustBlog Reggie Middleton

Veritaseum: The ICO That's Ushering in the Era of P2P Capital Markets

Veritaseum is in the process of building peer-to-peer capital markets that enable financial and value market participants to deal directly with each other on a counterparty risk-free basis in lieu...

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This Is Ground Zero for the 2017 Veritas…

03-04-2017 Hits:78749 BoomBustBlog Reggie Middleton

This Is Ground Zero for the 2017 Veritas Offering. Are You Ready to Get Your Key to the P2P Capital Markets?

This is the link to the Veritas Crowdsale landing page. Here is where you will be able to buy the Veritas ICO when it is launched in mid-April. Below, please...

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What is the Value Proposition For Verita…

01-04-2017 Hits:81039 BoomBustBlog Reggie Middleton

What is the Value Proposition For Veritas, Veritaseum's Software Token?

 A YouTube commenter asked a very good question that we will like to take some time to answer. The question was, verbatim: I've watched your video and gone through the slides. The exchange...

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This Real Estate Bubble, Like Some Relat…

28-03-2017 Hits:47924 BoomBustBlog Reggie Middleton

This Real Estate Bubble, Like Some Relationships, Is Complicated...

CNBC reports US home prices rise 5.9 percent to 31-month high in January according to S&P CoreLogic Case-Shiller. This puts the 20 city index close to an all time high, including...

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Bloomberg Chimes In With My Warnings As …

28-03-2017 Hits:79752 BoomBustBlog Reggie Middleton

Bloomberg Chimes In With My Warnings As Landlords Offer First Time Ever Concessions to Retail Renters

Over the last quarter I've been warning about the significant weakness in retailers and the retail real estate that most occupy (links supplied below). Now, Bloomberg reports: Manhattan Landlords Are Offering...

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Our Apple Analysis This Week - This Comp…

27-03-2017 Hits:79264 BoomBustBlog Reggie Middleton

Our Apple Analysis This Week - This Company Is Not What Most Think It IS

We will releasing our Apple forensic analysis and valuation this week for subscribers (click here to subscribe - lowest tier is the same as a Netflix subscription). As can be...

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The Country's First Newly Elected Lame D…

27-03-2017 Hits:79818 BoomBustBlog Reggie Middleton

The Country's First Newly Elected Lame Duck President Will Cause Massive Reversal Of Speculative Gains

Note: Subscribers should reference  the paywall material here for stocks that should give a good risk/reward scenario for bearish trades. The Trump administration's legislative outlook is effectively a political desert, with...

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Sears Finally Throws In The Towel Exactl…

22-03-2017 Hits:84827 BoomBustBlog Reggie Middleton

Sears Finally Throws In The Towel Exactly When I Predicted "has ‘substantial doubt’ about its future"

My prediction of Sears collapsing once interest rates started ticking upwards was absolutely on point.

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The Transformation of Television in Amer…

21-03-2017 Hits:81753 BoomBustBlog Reggie Middleton

The Transformation of Television in America and Worldwide

TV has changed more in the past 10 years than it has since it's inception nearly 100 years ago This change is profound, and the primary benefactors look and act...

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This is another Op-ed piece from the techinical/chartist members of the BoomBustBlog community. This is not my work or opinion, and I supply it as an illustrative opinion for those who follow techinical analysis on the blog. As is customary, I do not warranty the validity or accuracy of Op-Ed pieces.

First chart: S&P 500 against the VIX volatility index, (Hourly Chart, Feb 09-Present Day)

The VIX volality index is a tool to measure investor fear or lack of fear (complacency) in the stock market. In general, when the markets trade lower, investors fear the market and the VIX rises; conversely when the market rises, the VIX index should fall.  This chart shows the S&P 500 (black/red line) rising since the March 9th 2009 low, as the VIX (light blue line) falling as investors become increasing confident in the stock market.  It's important to note divergences in various types of charts, they tell you something may be changing in the underlying internals of the stock market, even if the stock market's price has

yet to change.

Click to Enlarge

may20_spx_v_vix_divergence.jpg

You can see starting in March the market internals had changed (marked by green notes), the VIX was not marking higher highs as the market was making lowers... in essence major investors weren't fearing the lower prices, but rather using them as a buying opporunity. Since that March 9th market low, everytime the VIX made lower lows, the S&P made higher highs... that changed this week.

The descending trend channel (dark blue lines) aims to capture the methodical downward movement of the VIX (or increasing investor confidence). On May 20th that sharp spike below the bottom trendline illustrates major complacency by investors, yet the S&P 500 did not confirm investor confidence with higher prices in the S&P 500. The negative divergence (marked by red notes) in the S&P 500 chart against the VIX becomes a signal that a trend change may be in the works.


Second Chart: S&P 500 against Banking Index (BKX) and Regional Bank Holders ETF (RKH), (15Min Chart, 10 prior trading days)


Click to enlarge

spyvbkx-rkh_5-20-09.jpg
Not much to this chart, but paired with other things going on technically in this market, it is very interesting. Just before the March 9th lows, there were 2 or 3 trading days (not charted) where the commercial and regional banks demonstrated noticeable relative strength compared to the overall markets.  Since those lows, the banks have led the markets higher.  Over the last 2 trading days, the market (black/red line) continued to move higher, yet the commercial banks (blue) and regional banks (orange) are relatively weak overall. Anyone who saw this developing on May 18th was able to initiate short positions in the banks at the open, May 19th.

These relative strength charts can be great tells for the overall market, last year in April and May 2008 (not charted) as the market rallied, the regional banks and housing stocks did not participate, which gave an early indication that rally was not a continuation of the bull market, but rather a weak bounce in an emerging bear market.