Trader Note

For Unemployment lower: Markets won't react positively long term in pre-floor trade.

 

Bitcoin Spilt Canceled

The proposed spilt to Bitcoin blockchain, Segwit2x, has been canceled by market makers in the space:

http://www.zerohedge.com/news/2017-11-08/bitcoin-explodes-7900-after-hard-fork-suspended

The code split will need to be enacted to extend the shelf life of Bitcoin, so this is simply a release delay. This creates more uncertainty in the market, as the split date will occur eventually. However, not having a set time for this code upgrade gives holders of Bitcoin more uncertainty and investors hate uncertainty.

Expect volatility in this market. Traders that were expecting to sell off the weak leg of the split next week will now be profit taking at higher prices and looking for a better re-entry price. Speculators who were willing to take the risk of the split will now be holding their Bitcoins into the future, awaiting the split.

Expect that there will be some decent size price moves as traders reposition around this news. That means that big dips are possible, leading to good entry long prices. It also means that there may be a surge in demand as weak investors feel more confidence around the current prices.

So trade with caution. Take profits at spikes higher in price, but don't wait too long on a hard dip for a re-entry. Price action will be to the upside in the long term, but volatile in the short term.

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