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Thrilling Thursday – Nasdaq Makes New Highs, Ethereum Flash Crashes

Wow, what a ride!   The #2 Crypto-currency, Ethereum had a bit of a flash crash yesterday , trading as low as 0.10 from the high of the day at $317 as a single seller tried to sell $30M worth in what is really an illiquid market.  Even after the first wave reversed, a second wave took the currency down to $130 on even heavier volume than the first, forcing the main exchange, Coinbase, to go offline .     Even though the " Status ICO " (selling program called an "Initial Coin Offering") is over, there are still a huge number of transactions clogging up the network and the only way to get transactions in is to pay huge fees (which most of the exchanges probably don't want to do). Until it clears out, people are going to be missing ENS auctions, unable to withdraw from many wallets and exchanges, etc.   As noted by Emansipater , one of Reddit's crypto experts: "B adly designed ICOs, plus selfish and foolish miners = major delays and maybe even  substantial losses  for everyone else ." Judging by the ensuing flash crash, this was an accurate assessment. Inexperienced traders on amereur exchanges – what could possibly go wrong?   That's what I like about the Dollar – it hardly ever goes off-line, freezing my assets while it's value goes up and down 99% in a day.  Have I mentioned how much I like CASH!!! lately?  We certainly have tons of CASH!!! in our 4 Member Portfolios and, as noted in this weekend's Portfolio Review , we're very well-balanced but still tilted a little bit bearish as we simply can't endorse the insane valuations that are driving indexes, especially the Nasdaq, to record highs.   I was on Money Talk last night and we discussed the trade ideas from yesterday's morning Report                  

Wow, what a ride!  

The #2 Crypto-currency, Ethereum had a bit of a flash crash yesterday, trading as low as 0.10 from the high of the day at $317 as a single seller tried to sell $30M worth in what is really an illiquid market.  Even after the first wave reversed, a second wave took the currency down to $130 on even heavier volume than the first, forcing the main exchange, Coinbase, to go offline.    

Even though the "Status ICO" (selling program called an "Initial Coin Offering") is over, there are still a huge number of transactions clogging up the network and the only way to get transactions in is to pay huge fees (which most of the exchanges probably don't want to do). Until it clears out, people are going to be missing ENS auctions, unable to withdraw from many wallets and exchanges, etc.  As noted by Emansipater, one of Reddit's crypto experts:

"Badly designed ICOs, plus selfish and foolish miners = major delays and maybe even substantial losses for everyone else." Judging by the ensuing flash crash, this was an accurate assessment.

Inexperienced traders on amereur exchanges – what could possibly go wrong?  

That's what I like about the Dollar – it hardly ever goes off-line, freezing my assets while it's value goes up and down 99% in a day.  Have I mentioned how much I like CASH!!! lately?  We certainly have tons of CASH!!! in our 4 Member Portfolios and, as noted in this weekend's Portfolio Review, we're very well-balanced but still tilted a little bit bearish as we simply can't endorse the insane valuations that are driving indexes, especially the Nasdaq, to record highs.  

I was on Money Talk last night and we discussed the trade ideas from yesterday's morning Report 

 

 

 

 

 

 

 

 

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