Bitcoin falls to the lowest level since early June

5 month low for the digital current

the price of bitcoin has fallen sharply in trading today.  On Coinbase, the digital currency is trading down $585 at $7535.  The low for the day reached $7448.53. That took the price to the lowest level since June 5.

5 month low for the digital current 

On the run lower the pair fell below the September and October lows (see the daily chart above). The lowest of those swing levels came in at $7701. That is now close risk for sellers.
The next target on the downside will be the June 5 low at $7427.  A break of that level look toward the 61.8% retracement of the move up from the December 2018 low to the June 2019 high. That retracement level comes in at $7231.40.  Fallen below that level opens up the door toward the may 17 low at $6600.
The price of bitcoin move below its 200 day moving average (green line in the chart above) on September 26.  Since then, there have been 4 days when the price traded back above that moving average line (the last time was on October 11), but there have been no closes above that key moving average.  The price has also remain below its 50% retracement at $8498.67 also since October 11.
The bears remain in control for the digital currency.
Facebook’s Mark Zuckerberg will be grilled on Capitol Hill today on their Libra initiative.  The expectations are that the Congressional leaders will not be 2 supportive of their proposal.

Trump will make a statement on Syria conflict at 1500 GMT (11 am ET)

Trump comments to come later

Trump has been tweeting for the past hour with the usual stuff on impeachment and whatever else Fox Business is talking about.
Big success on the Turkey/Syria Border. Safe Zone created! Ceasefire has held and combat missions have ended. Kurds are safe and have worked very nicely with us. Captured ISIS prisoners secured. I will be making a statement at 11:00 A.M. from the White House. Thank you!
Expect the statement to be along those lines but there is always a high risk of Trump going off-script.

Boris Johnson spokesman: If EU offers Jan extension, there will need to be an election

Johnson spokesman:

  • Johnson spoke to Tusk and told him he still opposes an extension
  • No meeting of minds with Corbyn after meeting
  • Johnson wants to get his deal done by Oct 31 but yesterday’s vote makes no-deal more likely
  • If an extension is vetoed, we have a plan to get it done
  • Asked if he could hold an election before Christmas, spokesman says ‘yes’
The Irish PM said if there is no consensus on extension, EU leaders would need to meeting possibly on Monday, maybe even Friday.
A Labour spokesman said there is a strong likelihood the EU will grant an extension along the lines of what was requested.

Russia’s Novak: No official proposals from OPEC+ members to change deal

Comments by Russian energy minister, Alexander Novak

  • Says all OPEC+ members need to comply with the current deal in full
Yesterday, we saw headlines of potential deeper output cuts by OPEC and that helped to give oil prices a lift in overnight trading.
As much as I want to be optimistic about that, I’d reserve judgment as it is still early days before we get to the next OPEC+ meeting in December.
Then, there is the issue of compliance as Novak noted above as well. Deeper cuts are pointless if they cannot get every contributing nation on board with 100% compliance.

Brexit: JP Morgan says if offered short extension, expects Johnson to attempt to pass WAB

They also say that he will probably succeed in doing so in such a scenario

Pretty much stating the obvious but okay.

There’s also whispers that the government is mulling over calling a no-confidence motion in itself, to ensure that they do get to an election in case Labour is “playing games”.
But with the numbers to get a deal through, it remains to be seen if we will get there. Either way, even if all of this goes well for Johnson and the government, this is just the first hurdle. 2020 will bring another new season to the Brexit drama.

Hong Kong formally withdraws extradition bill

The Hong Kong government formally withdrew a controversial extradition bill on Wednesday, following months of social unrest and political turmoil that have upended the city’s normally peaceful image.

The secretary for security, John Lee Ka-chiu, made the announcement before lawmakers in the chamber of the Legislative Council. The move meets one of the five demands by anti-government demonstrators, who are also calling for the resignation of Chief Executive Carrie Lam.

Lee’s announcement was met with shouts from pro-democracy lawmakers. Civic Party member Kwok Ka-ki was expelled after calling for Lee’s resignation while Lee was still addressing the chamber. Other pro-democracy lawmakers held up slogans reading, “Lee Ka-chiu step down.”

Meanwhile, the Hong Kong man whose alleged killing of his girlfriend in Taiwan prompted the crisis over the bill on Wednesday was released from prison on a lesser offense of money laundering. The suspect, Chan Tong-kai, has said that he would turn himself in to Taiwanese authorities.

The move to introduce the bill earlier this year was prompted by a legal dilemma over the murder suspect because the governments of Hong Kong and Taiwan do not have an extradition treaty. Chan was originally sentenced to 29 months in prison in Hong Kong but was released after serving 18 months.

The Hong Kong government had said the legal loophole needed to be closed to uphold justice and align the city’s laws with international standards. But the proposed law would also have paved the way for criminal suspects to be sent to mainland China, which many say lacks an independent judiciary system.

Chan Tong-kai, a Hong Kong citizen who was accused of murdering his girlfriend in Taiwan last year, leaves from Pik Uk Prison in Hong Kong on Oct. 23.   © Reuters

Widespread peaceful demonstrations against the bill drew millions of people to the streets in early June. Opponents of the legislation said at the time that the proposed law could have been used by mainland authorities to extradite anyone in Hong Kong to China, including Beijing’s political adversaries.

Over the past few months, protests have devolved into widespread anti-government and anti-China demonstrations, with many calling for a more democratic society and greater accountability to its citizens.

Police have used tear gas, rubber bullets, water cannons and sponge grenades to disperse crowds, as some hard-line protesters have set fires at rail stations, smashed store fronts and vandalized other places of business with connections to mainland China or those perceived to be against the protests.

On Oct. 1 — the day Beijing held ceremonies to commemorate the 70th anniversary of the founding of the People’s Republic of China — a policeman shot an 18-year-old man while he was attacking officers. That marked the first time a demonstrator was hit by live ammunition since the protests began.

As violent clashes between protesters and police continued into autumn, Lam invoked emergency powers on Oct. 4 to ban the wearing of face masks during demonstrations. But tens of thousands of protesters have defied the ban to hide their identity and protect themselves against tear gas.

North Korean dictator says will withdraw South Korean facilities from Mount Kumgang Tourist Region

Mount Kumgang Tourist Region is a special administrative region of North Korea.

Popular with South Korean tourists.
Tensions between North and South have re-exscalated recently, this a response from Kim Jong Un. Adds that SK visitors are still welcome.

FT report that China is drawing up plan to replace Carrie Lam as Hong Kong chief

Financial Times with the report

  • Chinese government is drawing up a plan to replace Carrie Lam
  • with an “interim” chief executive
  • Xi Jinping, China’s president, will make the decision
  • if he agrees, Lam would be replaced by March 2020, cover the remainder of her term, which ends in 2022.
FT link (may be gated)

US stocks end the session lower and near session lows

S&P index back below the 3000 level. NASDAQ loses -0.72%

The major stock indices slid in the afternoon trading after being higher earlier in the day. The major indices are ending the session in the red, led by the NASDAQ composite index which fell -0.72%
The closes are showing:
  • the S&P index -10.65 points or -0.35% at 2996.07. The high reached 3014.57, while the low extended to 2995.04
  • the NASDAQ composite index fell 58.69 points or -0.72% at 8104.29. The high extended up 28194.62 while the low reached 8101.98
  • The Dow industrial average is closing down -39.27 points or -0.15% at 26788.32.  The high reached 26946.64.  The low extended to 26782.61

After today’s close Chipotle, snap, Texas Instruments, and Whirlpool will be releasing their earnings.

Tomorrow will be 1 of the bigger earnings day’s so far with Microsoft, Boeing, Caterpillar and others expected to release:

Wednesday, October 23

  • Boeing, BA
  • Blackstone Group, BX
  • General Dynamics, GD
  • Owens Corning, OC
  • Ford, F
  • Caterpillar, CAT
  • Celgene, CELG
  • Microsoft, MSFT
  • eBay, EBAY
  • PayPal holdings, PYPL
  • Tesla, TSLA