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Morning Commentary

Bitcoin Takes Center Stage

By Charles Payne, CEO & Principal Analyst
12/7/2017 9:55 AM
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Question of the Week

Do you think Bitcoin is another bubble or is it worth all the hype?

Post your answer below.

There was more of a sideways movement for the market on Wednesday. Investors are clearly looking for the next catalysts, which could be the jobs report on Friday. The initial reaction to the ADP National Employment Report sent major indices higher out the gate, and it could be a harbinger for the governmental version.

Meanwhile, a lot of questions remain, including what the final version of the GOP tax bill looks like, and the likelihood that some last-minute horse-trading will result in a final corporate tax rate of 22%.  I always have suspected the final number to be between 22% and 25%, so it shouldn’t be a major surprise. Be that as it may, with the hand-wringing and fearmongering, much will be made of the broken promise of 20%.

I’m very excited we can see the finish line without dealing with any last minute GOP shenanigans, which could trip this up.  Right???

We saw some re-rotation back into technology names – believe it or not, there are a lot of oversold high-flyers. 

S&P 500 Index


Consumer Discretionary (XLY)


Consumer Staples (XLP)


Energy (XLE)


Financials (XLF)


Health Care (XLV)


Industrials (XLI)


Materials (XLB)


Real Estate (XLRE)


Technology (XLK)


Utilities (XLU)




Of course, the biggest rotation is that of excitement from stocks to Bitcoin (BTC). Yesterday was another exciting day for the cryptocurrency, which rallied 13% to $13,214, bringing its total value to $220.9 billion (which puts it right outside the top-ten most valuable companies in the S&P 500). Wells Fargo (WFC) is number 10 at $242 billion.


Today’s Session

Initial claims continue to decline.  For the week ending December 2, claims were 236,000 down 2,000.  A better gauge, the four-week moving average decreased by 750 to 241,500.  Continuing claims are also lower, down 52,000 to 1.908 million for the week ending November 25, while the four-week average was up by 1,000 to 1,912,750.  This is now 144 consecutive weeks that initial claims have been under 300,000.  Now all eyes are on Friday’s job report. 

The markets opened in the green, but just slightly.  Let’s stay on the sidelines and see how the morning trades. 



I have no clue and don't care either.

Karin Pereira on 12/7/2017 9:59:11 AM
greater fool theory.......... everyone will want to sell at the top, and they will crash

bob soutas on 12/7/2017 10:13:49 AM
Perhaps but will everyone really know the top at the same time? Moreover, what happens after the crash? The bigger question is long term impact which is becoming real. CP

Charles Payne on 12/7/2017 10:16:06 AM

Scott on 12/7/2017 10:28:49 AM
Bitcoin shiuld be called bitcon. It is a ponzi scheme turned on its side. Why would anyone with even half a brain ever get into that scheme? Of course, the answer is greed! What you have with bitcoin is a few guys with desires to make themselves rich who have created an imaginary item and are selling it to those who hope ita imaginary value will increase so they can get rich also. Those who buy bitcoin are betting that they can get in early and out before it collapses. It is a very bad bet when the other guys are holding controls.

Bob on 12/7/2017 11:04:07 AM
When BC was at $250 each, I (and most) had all my 10 coins worth hacked out in Japan by the owner/manager of the exchange. He got caught, went to jail for a bit. I still lost all. No FDIC to cover here. I used to think, aw it's just money I can afford to lose. Really $160,000!

Donald McArthur on 12/7/2017 11:21:39 AM
Bitcoin's development makes me wonder about the comparative security of other currencies - Bitcoin looks better than the Venezuelan bolivar, and what about counterfeit currency, and governments printing currency as if it were rolls of paper towels.

Patricia Flynn on 12/7/2017 11:49:18 AM
Well worth it

Richard Fagle on 12/7/2017 11:59:39 AM
Bitcoin, I wouldn't even invest your money in it.

Jeffrey Price on 12/7/2017 2:18:57 PM
My millennial son is invested in bitcoin and all I'll I can say is......

Eric Wagoner on 12/7/2017 2:43:31 PM
Since there is nothing backing up the Bitcoin and there are only about 1000 people who own the majority of the product, there is a greater risk and the reward however large may also be fleeting. Better off gambling at the craps table and at least have some fun!!!

Perry Solotoff on 12/14/2017 7:14:59 PM

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