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Morning Coffee: As Trump Takes on EU, Stocks plunge, Recession ahead?

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Stocks and Securities

Dow FuturesNASDAQS&P 500





U.S. stock futures are under pressure Monday, with investors remaining concerned about trade fights as President Donald Trump talked tough again on trade with the European Union.

[finviz ticker=SPY width=400] [finviz ticker=IYY width=400] [finviz ticker=QQQE width=400] [finviz ticker=IWM width=400]

A Financial Times report on Sunday said the European Union has threatened $300 billion in fresh tariffs against U.S. products if Trump follows through on his threatened 20{d745bfe1f0a8cfaf7934723e820c1a1fdf298af2e9634a8abb073c3029806a15} levies targeting the trade bloc’s auto makers. And Canadian retaliatory tariffs took effect Sunday, with those measures serving as a response to U.S. metals tariffs.

On the data front, Global equity funds have seen outflows of $12.4 billion in June, a level not seen since October 2008, according to market research firm TrimTabs. Lehman Brothers collapsed in September of that year, triggering the worst economic downturn since the Great Depression and helping fuel a bear market in which major indexes lost more than 50 percent of their value.  If the trend holds up, it will make the first time global equities have seen net outflows since November 2016.


Blockchain and cryptocurrency

The overall market capitalization increase about  $3B USD, or just about 1{d745bfe1f0a8cfaf7934723e820c1a1fdf298af2e9634a8abb073c3029806a15}, going from $253B to $256B. Blockchain purist and enthusiasts can be happy to note that a self-claimed Satoshi Nakamoto recently announced that there is a book in the works. The book which will be about Bitcoin and its history, will include two parts. The individual stated on that,

first excerpt to a literary work consisting of two parts. The excerpt is provided. I wanted to include it as a brief glimpse of history. Even for those that can’t read the full book, I wanted to make this available to everyone. A short story if you will, with some of the most brought up questions and answers. I wanted the people and the facts to be known. Or as much of it. I’m still saving most for the books, the best parts hopefully. It’s currently just a possibility for now.

Bitcoin seems to be rallying a bit this morning, which could be attributed to the stocks futures lagging behind.

bitcoin price action and prediction

Bitcoin price action and prediction

Continue to watch the $6300 – $6500 resistance for Bitcoin.

Bitcoin seems to be rejected once again at the resistance line.

Bitcoin seems to be rejected once again at the resistance line.

On the other note, the price action of ETH is what you’d like to see. If you refer to our previous article, we highlighted the low this key area as the zone to watch for a major bounce-back. Look for ETH to attempt to break through this downtrend, if ETH fails to breakout, then it could potentially drop back to the first support ($375 – $400).

ETH price action and prediction

ETH price action and prediction


Bitcoin chart

Bitcoin (BTC) chart

Bitcoin continues to stay within range. The price has not moved significantly since our publication of our previous report. It is imperative to note that our bearish sentiment continues to stand, however, BTC seems to have found a base here and could potentially rally.

ETH chart

Ethereum (ETH) chart

Ethereum seems ready to breakout. Look for ETH to breakout of this downtrend in the coming days.

Stocks on the Radar

Avalara Inc. (AVLR) [stock_quote symbol=”AVLR”] – Our “Radar Stock” for the day is Avalara (AVLR). Avalara, which went public with its IPO two weeks ago, sells automated tax compliance software for enterprise use and offers integrations with software giants like Oracle, Workday and Stripe. Avalara’s motto is “tax compliance done right” and their mission is to enable companies to focus on their core business and not worry about tax compliance — their vision is to be part of every transaction in the world.

There are thousands of local, regional, state, and federal taxing authorities in the U.S. and internationally that impose a variety of transaction taxes that businesses must comply with, which include tax obligation, collection, remittance, records of registrations, tax exemption certificates, and other compliance documents. Avalara’s core market are SMB to mid-market companies ranging from 20 to 500 full-time employees and in many cases these companies don’t have any software systems to track their tax compliance and/or file taxes. Moreover, the U.S. government collects many millions of dollars per year in fines from companies that don’t comply and/or make errors with their taxes. While regulation may be decreasing at the federal level, commerce is becoming more global and local and state regulations are increasing. For example, the company reveals that digital music downloads are currently taxable in New Jersey but tax exempt in Iowa.

The company’s core product offering, AvaTax, processes transaction tax determinations on average in under 60 milliseconds and in 2017 processed an average of over 16 million tax determinations per day, including 58+ million on Cyber Monday.

We would be buyers of the stock in the $46 range.

[finviz ticker=AVLR width=600]




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Disclaimer: The above references an opinion and is for information purposes only.  It is not intended to be investment advice.  Seek a duly licensed professional for investment advice. The Author does not hold any of the securities discussed above.
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Author avatar

Dr. Tiam Feridooni

Written by: Dr. Tiam Feridooni MD, PhD, BSc Dr. Feridooni, graduated from Dalhousie Medical School in May, 2018. Prior to enrolling in medical school, he completed his Bachelor of Science with Honours in 2010 in Biochemistry. He then obtained his PhD at Dalhousie University in Pharmacology in 2014, with a focus around regenerative medicine and stem cell transplantation. Dr. Feridooni has been published numerous high impact journals and has also co-authored a few books.

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