Low-risk Buying Opportunity for Meta / Facebook Investors.

 

For a company like FB that previously commanded an earnings multiple of nearly 30, a weaker earnings trend than anticipated can wreak havoc, and this is exactly what we've seen, with FB correcting nearly 50% from its highs in less than six months. The good news is that this has left the stock quite reasonably valued, sitting at less than 14x FY2023 earnings estimates. This is a very reasonable multiple for a stock that's expected to see a new high in annual EPS in FY2023 and FY2024, after a blip in FY2022 ($12.55 vs. $13.77).

In fact, FB's historical earnings multiple sits closer to 30 over the past decade. Even if we adjust for the slower growth rate going forward and assign a fair earnings multiple of 18, this still points to a fair value of more than $266.00 per share. This translates to more than 25% upside from current levels, suggesting that the stock finally offers some value to investors. Let's look at the technical picture below:

(Source: TC2000.com)

Moving over to Meta's technical picture, we can see that the stock has plunged by nearly 50% from its highs and has found itself hovering just above a key support level at $190.00. Meanwhile, there is no strong resistance for the stock until $317.00, given that no strong resistance levels have been built on the way down, due to the torrid pace of the correction. This provides investors with a more than 10 to 1 reward/risk ratio from a technical standpoint from the $200.00 level.

Obviously, this attractive reward/risk ratio does not have to translate into higher prices, but it certainly has created a relatively low-risk buying opportunity for investors. Hence, for investors anxious to add exposure to FB to their portfolios, I would view any pullbacks below $200.00 as an attractive point to start an initial position in the stock.

While we have not seen any confirmation of capitulation from a sentiment standpoint, the market has become quite oversold short-term and is nearly as oversold as it was in March 2020. This technical setup favors being open-minded to a short-term bottom and the potential for a 10% plus rally in the QQQ from the $320.00 level. With FB trading at less than 14x FY2023 earnings estimated offer low-risk entries below $200.00 respectively, for an initial position.

Disclosure: We have 100 units positions in stock mentioned but may start a new position in META in the next 24 hours.

Disclaimer: www.11.com.my is not a Registered Investment Advisor or Financial Planner. This writing is for informational purposes only. It does not constitute an offer to sell, a solicitation to buy, or a recommendation regarding any securities transaction. The information contained in this writing should not be construed as financial or investment advice on any subject matter. www.11.com.my expressly disclaims all liability in respect to actions taken based on any or all of the information on this writing.

 

Technical Analysis for FB by TradingView

Gold price push to $1,900 after inflation rose to highest level in three decades!

The gold market is seeing new bullish momentum after U.S. inflation data rose to its highest level in more than three decades, and some analysts are looking for a move back to $1,900 an ounce in the near term.

According to some analysts, gold is catching a new bid as inflation pressures ramp up, raising concerns that the Federal Reserve will be behind the inflation curve.

"Inflation is here and it's only going to get worse," said Bob Haberkorn, senior commodities broker with RJO Futures. "There is a major concern that the Federal Reserve is limited to what it can do to stop inflation from rising. There is a real fear among investors that the Fed will lose control."

The latest inflation data pointed to broad-based increases in consumer goods. Food was up 5.3% from a year ago – the biggest increase since January 2009. Gasoline prices surged 6.1%, marking the biggest gain since March.

The rise in inflation comes as U.S. consumers start their holiday shopping and prepare for Thanksgiving.

Helping to support gold's breakout through critical resistance at $1,835 has been a drop in real interest rates. Following the latest Consumer Price Index data, real yields on 10-year notes dropped to a record low of -1.235%.

Along with the drop in real yields the break-even rate, the difference between nominal 10-year bond yields and Treasury Inflation-Protected Securities rose to 2.64%. Analysts note this indicates that bond markets are pricing in even more inflation risk.

While off their highs, gold prices last traded at $1,858 an ounce, up 1.5% on the day. The precious metal is currently trading at a five-month high.

Haberkorn added that he expects that this is just the start of gold's move higher. He said that his next target for gold is between $1,900 and $1,920.

"If gold is going to rally, it is because of this new inflation fear," he said.

Colin Cieszynski, chief market strategist at SIA Wealth Management, said that he also sees gold prices pushing to $1,920.

"This was a significant breakout for gold, and there is not much between here and $1,900," he said.

Cieszynski added that not only did gold break a significant resistance level, but it did so even as the U.S. dollar has pushed higher. The U.S. dollar index is currently trading near a one-year high back above 94.50 points.

"The fact that gold can break out when the U.S. dollar is rallying means that it has the momentum to move higher," said Cieszynski.

Darin Newsom, president of Darin Newsom analysis, said that he is also looking for gold to push higher in the near term. He added that there are signs that the U.S. dollar is topping out, which will benefit all major commodities.

"I'd look for Dec gold to possibly test that old group of highs, roughly the $1,875 to $1,915 range. That means the contract looks to have limited intermediate-term upside potential at this time," he said. "Weekly stochastics have moved above the overbought level of 80%, meaning buying interest could start to slow, but we are seeing no sign of a bearish reversal at this point. That could be a couple of weeks away yet."

While gold prices have room to move higher, some analysts noted that there is some initial resistance at $1,870 an ounce.

Source: kitco news

Bitcoin hit $150,000 by the start of 2022

 “Until this trend changes it will continue to put upward pressure on price as demand for Bitcoin has to accept higher prices amongst the limited supply available.”

Bitcoin (BTC) is “ready to rally” again as BTC price action flips bullish on crucial timeframes, trading platform Decentrader says.

In its latest market update on Oct. 29, the firm predicted incoming fresh upside for Bitcoin, which has languished below old all-time highs this week.
$150,000 end-of-year potential

Despite sideways moves in BTC/USD keeping markets guessing, the odds are still on for gains to enter in the short term, analysts believe.

While the area around this year’s two highs — $63,900 and $67,100 — are the main focus of discussion, real friction might in fact only lie far into price discovery territory nearer $100,000.

“On a technical, market cycle, and on-chain basis, we continue to believe that the next major area of difficulty for $BTC will not hit until we approach $85,000 – $90,000,” the update forecasts.

This is due in part to a moving average crossover event involving the 128-day and 200-day trends, which has historically sparked “sustained” upside.

Closer to the present, Bitcoin’s three-day chart, which Decentrader holds to be an especially accurate price tool, is now bullish, contradicting the current bearish daily and neutral weekly setup.

This is one ingredient feeding into a probable channel for price action which could see Bitcoin hit $150,000 by the start of 2022.

The status quo with the overall Bitcoin supply should help matter — exchange reserves continue to fall, indicating resolve to hold, rather than sell, among traders.

“Evidence continues to suggest that existing market participants remain bullish. One data point to support this is the continual draining of Bitcoin from exchanges as users select to put their Bitcoin into cold storage. The net impact of this is that short-term supply is reduced,” the update concluded about Bitcoin.  

Sources: https://cointelegraph.com/news/btc-price-ready-to-rally-with-bitcoin-bulls-clear-to-charge-at-85k-analysis

JPMorgan Institutional Investors Replacing Gold With Bitcoin

 

The shift into bitcoin that drove late-2020 all-time highs “has started reemerging in recent weeks,” wrote analyst Nikolaos Panigirtzoglou.

“Bitcoin’s allure as an inflation hedge” is drawing institutional investors back to the crypto market, JPMorgan’s Nikolaos Panigirtzoglou wrote in an Oct. 6 research note to clients.

“There are tentative signs that the previous shift away from gold into bitcoin seen during most of Q4 2020 and the beginning of 2021 has started reemerging in recent weeks,” he said.

Bitcoin prices have surged above $50,000 recently, climbing 85% this year. The price of ether, the native currency of the Ethereum blockchain, has rose 393% year to date.

Meanwhile, gold prices are hovering below $1,800 per ounce, falling 6.5% in 2021.

Panigirtzoglou pointed to “the failure of gold to respond in recent weeks to heightened concerns over inflation” as a possible driver of the return to bitcoin.

Gold is often seen by investors as a hedge against inflation due to the perception it protects purchasing power and the ability to provide defense during market turmoils.

Sources: https://www.coindesk.com/business/2021/10/08/jpmorgan-says-institutional-investors-are-replacing-gold-with-bitcoin/

U.S. could soon approve a futures-based bitcoin exchange fund.

 

One or a group of large bitcoin buyers, also called bitcoin whales, appeared to be behind Wednesday’s price pop, based on data that showed large bitcoin purchases on exchanges during early U.S. trading hours.

But why the whale – or whales – placed bitcoin buying orders of nearly $1.6 billion in a few minutes on a centralized exchange remains unclear.

At press time, bitcoin was changing hands at $54,938.47, up 7.89% in the past 24 hours, according to CoinDesk 20.

According to South Korea-based blockchain data firm CryptoQuant, someone or a group of people purchased the massive amount of bitcoin on the spot market on centralized exchanges between 13:11 and 13:16 UTC Wednesday.

The timing of the purchase came not long after U.S. Republicans shared favorable comments on cryptocurrencies and amid increased expectations from markets that the U.S. could soon approve a futures-based bitcoin exchange fund.

The purchase could have started on Coinbase, Ki Young Ju, co-founder and CEO of CryptoQuant told CoinDesk. He pointed out that “Coinbase premium” rose sharply around the same time before it dropped again.

One or a group of large bitcoin buyers, also called bitcoin whales, appeared to be behind Wednesday’s price pop, based on data that showed large bitcoin purchases on exchanges during early U.S. trading hours.

But why the whale – or whales – placed bitcoin buying orders of nearly $1.6 billion in a few minutes on a centralized exchange remains unclear.

At press time, bitcoin was changing hands at $54,938.47, up 7.89% in the past 24 hours, according to CoinDesk 20.

According to South Korea-based blockchain data firm CryptoQuant, someone or a group of people purchased the massive amount of bitcoin on the spot market on centralized exchanges between 13:11 and 13:16 UTC Wednesday.

The timing of the purchase came not long after U.S. Republicans shared favorable comments on cryptocurrencies and amid increased expectations from markets that the U.S. could soon approve a futures-based bitcoin exchange fund.

The purchase could have started on Coinbase, Ki Young Ju, co-founder and CEO of CryptoQuant told CoinDesk. He pointed out that “Coinbase premium” rose sharply around the same time before it dropped again.

The “Coinbase premium” is an indicator showing the gap between Coinbase’s BTC/U.S. dollar (USD) pair and Binance’s BTC/USDT pair involving the tether stablecoin. When the number increases, it usually reflects stronger buying power on Coinbase, the centralized exchange.

Sources: https://finance.yahoo.com/news/bitcoin-price-rally-fueled-whales-201820117.html

SC Takes Enforcement Actions on Binance for Illegally Operating in Malaysia

 30 July 2021

The Securities Commission Malaysia (SC) today announced enforcement actions against Binance for illegally operating a Digital Asset Exchange (DAX). Under Sections 7(1) and 34(1) of the Capital Markets and Services Act 2007, all DAX operators must be registered as Recognized Market Operators (RMO) by the SC.

Accordingly, the SC has issued a public reprimand against Binance for continuing to operate illegally in Malaysia despite being included in the SC’s Investor Alert List in July 2020. In this regard, the public reprimand was issued against Binance Holdings Limited (Registered in the Cayman Islands), its CEO Zhao Changpeng, as well as three other Binance entities, namely Binance Digital Limited (Registered in the UK), Binance UAB (Registered in Lithuania) and Binance Asia Services Pte Ltd (Registered in Singapore).

All four Binance entities have been ordered by the SC to:

1. Disable the Binance website (www.binance.com) and mobile applications in Malaysia within 14 business days from 26 July 2021;
2. Immediately cease all media and marketing activities, including circulating, publishing or sending any advertisements and/or other marketing material, whether via emails or otherwise, to Malaysian investors; and
3. Immediately restrict Malaysian investors from accessing Binance’s Telegram group.

Zhao, as the CEO of Binance Holdings Limited, has also been specifically ordered to ensure that the above directives are carried out.

Investors are advised to stop dealing with and investing through illegal DAX. Those who currently have accounts with Binance are strongly urged to immediately cease trading through its platforms and to withdraw all their investments immediately.

The public is reminded to alert the SC if they come across any suspicious websites or receive any unsolicited phone calls or e-mails offering investment advice and opportunities, especially those that claim to offer high returns with little or no risks.

Exchanger of The Month:

Source: https://www.sc.com.my/resources/media/media-release/sc-takes-enforcement-actions-on-binance-for-illegally-operating-in-malaysia

Bitcoin may tumbled below $30,000 in 2021

Bitcoin tumbled below the US$40,000 mark on Wednesday to a three-and-a-half-month low and dragged down the prices of other digital coins after China imposed fresh curbs on transactions involving cryptocurrencies.

Bitcoin, the biggest and best-known cryptocurrency, had already been under pressure from a series of tweets from Tesla boss Elon Musk, but the news from China sent it as low as US$38,514, for a nine per cent fall. 

The cryptocurrency has tumbled nearly 40 per cent from a record high of $64,895 hit on April 14. It is also heading for its first monthly decline since November 2018.

 

Source: https://globalnews.ca and CNA 24/7 Breaking news