December 8, 2013
Weekly Market Outlook
By Keith Schneider
Just a few years ago, the idea of an alternate currency based on the concept of virtual mining was considered wacky. It was very far out of the mainstream and not taken seriously by seasoned traders, including myself. It was however, in the cross hairs of a younger crowd dominated by serious hackers, criminals and some very forward thinkers as well. In fact, those that stayed long made some real serious Bitcoin.
Bitcoins moved from about $13 to $1200 in the past 10 months. Many people now believe that the dominance of the global economy by central banks, big government and multinational corporations is ripe for a change, and virtual currency is the answer.
If money, like ideas needs to be free flowing and stateless, then digital virtual currency is the answer. Digital stateless currency has been unleashed, here to stay and its implications are far reaching.
It's also interesting to note that precious metals, the preferred hard money and currency alternative, have been the worst performing asset even in the face huge monetary expansion. Amazon, E-bay and many mainstream businesses either have already begun or will begin accepting Bitcoins as payment. Even Bank of America put out a bullish report on currency.
The chatter across the web on crypto currencies has exploded. In fact, one anonymous buyer bought a new TESLA S ($103,000) for about 91 Bitcoins from a car dealer.
While on the subject of Tesla, two weeks ago we talked about Tesla and the spate of fires that contributed to a healthy 50% correction of its recent parabolic move, and how critical it was for Tesla to squash those concerns. One might say its "mission accomplished" for Elon Musk.
The German highway safety board, which has very high standards, determined that the Tesla S is not a hazard and perfectly safe. While it appears true that the Tesla battery is more prone to fires than the less efficient batteries used by other car makers, the Tesla is still far safer than any gasoline powered automobile by a factor of three or more. It back to basics with trading Tesla's stock, as its core technology is sound.
Getting back to the stock market, good economic numbers came in this week across the board in the form of a great jobs report, good housing data, and consumer confidence. Interest rates hardly budged, quelling fears that a taper would trigger a major rise in rates and put pressure on stocks. This type of action is a gourmet meal for stocks, so let's go to this week's video and see where things are headed from here.