emq-bear
03
Jan

First Trading Day of 2018, Markets Rip Higher

One day into the year and the NASDAQ is right back at all time highs, up near 1.75% today. Oil is strong and I regret letting that RDS go without me. I have been following that name since last August, when it was trading down at $54.

Blockchain plays are still hot and business is as usual. In that space I like OSTK, XIN, XNET, and GSUM best. OSTK is a great play on this crypto craze and I would buy it if it comes down a bit. I would much rather buy OSTK than speculate in cryptos themselves. In particular, I like China-based blockchain plays because the technology has far greater value there, creating transparency in an environment controlled by a select few invisible hands. In that regard, I expect XIN, XNET and GSUM to trade much, much higher.

I also like my position here in alternative energy. NYLD, BEP, CAFD are back up near 12 month highs and if the sector is of any indication, PEGI should catch a bid shortly.

Biotech is also looking strong – another sector ripe with opportunity for collaboration with AI and blockchain technology. I would invest in this sector only via IBB, never in small cap biotechs.

This year, effective immediately, I have decided to speculate only in stocks backed by a blockchain/AI thesis. In other words, no matter how compelling the story is, if it does not involve decentralized networks or AI, I will skip over it like it never existed. Why? There is simply too much action in the AI/blockchain space to ignore, and the ‘window of luck’ is far larger than anywhere else. In fact, all a company needs to do nowadays is whisper those words on a conference call and their stock will be met with buying frenzy. After all, who wants to own a toilet paper manufacturer stock when one can take part in the dismantling of the financial system as we know it?