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  • Jay Smith

eToro Update - Week 23 2018


[No video this week or next, as I'm away in Canada. Text posts as usual]

Stats given cover closed trades for the 4th June - 10th June

My total realized profit from the past week is +0.18% Overall the portfolio is down 3.80%

Profitable trades closed: 7

Unprofitable trades closed: 0

No instrument was traded more than once

A steady week. I’ve been busy with some non eToro related work, then flew out to Canada mid-week for a holiday, so only 7 trades were closed, no day trades. Let’s start with the ongoing EOS Launch. In June the EOS project was handed over by Block One to the community to launch the blockchain. Until now everything has gone according to plan. The snapshot was taken and validated within a few days. The Block Producers (BP’s) setup in seperate groups to run through the EOS Boot sequence, testing and checking for bugs. Days later the chain was up and being validated. At the end of the week the BP’s voted with a majority to launch the version that had been created, leaving just one step before it is up and running - BP voting. This phase requires at least 15% of the total EOS being held to be utilised to vote in block producers to begin actively producing new blocks. This has so far proven more difficult than most (including me) anticipated. The Scatter and CLEOS wallets aren’t user friendly and it takes time to educate the community on how to safely setup a wallet and then vote. On top of that a huge chunk of EOS is tied up in exchange wallets leaving the owners no way to access it to vote. In a chicken/egg situation it probably won’t be given back to the investors to vote with until the blockchain is up and running, which won’t happen until enough people vote. eToro sits in this position since they hold the tokens on our behalf. It looks to me like it could be at least another week before we finally hit the 15% requirement for the chain to begin working. EOS did perform quite well during the period it’s been locked up for on eToro, hitting high’s in the $15 area but falling back to around $11.50 following the concerns about voting and the Korean hack I mention later. E3 has begun. Shares of relevant companies are up so far and there have been exciting rumours already. Fortnite, the world’s most popular game is rumoured to be launching on the Switch, a great style fit for both companies and potential cash cow for Nintendo. Microsoft have also had a great E3 so far, with new Forza, Gears of War and Halo titles announced among their 18 exclusives for the year, not to mention the streaming (which I may expand upon in a future post), or the 5 game studios they acquired! Unfortunately, there’s bad news for solar investments. China came out this month with cuts to subsidies for solar and a halt on new solar farms for the remainder of the year. This was followed up by analyst downgrades to $FSLR $SEDG and other solar companies. My thoughts here is that the market reaction is far too strong, Solar Edge earn only a fraction of their revenue from China and although the cuts hurt I do not think they hurt 30%.

Finally, the Korean crypto exchange CoinRail was hacked yesterday to the tune of $40 million. ERC20 tokens were the target and Pundi X, a point-of-sale solution that ICO’d recently was the hardest hit. The stolen funds could have been the catalyst for the drop below 7k. This makes the next few days for cryptos crucial to see if they can recover back above the recent trendline and breakout to the upside, or if my concerns for a potential fall below 6k are more likely to unfold.

Cryptos

$ETH - Closed out a position for a 1% gain after sensing some weakness coming.

Stocks $SNAP - Quite a few new shorts opened and an opportune short for around 2% closed.

$AMD - A really satisfying short on AMD after it broke 15 dollars for around 2% in a few hours, 1x leverage.

$ATVI - Closed for 1.77% profit from an older position here which I refreshed to allow new copiers in.

$SHOP - My largest profit for the week, approximately 10%, hoping to re-enter below 160 if there’s an opportunity.

$BABA - I’ve been looking to exit BABA for a month now so took a small profit here leaving just 1 position open.

Looking Forward

Sony, PC Gaming & Nintendo in the next two days at E3, Microsoft had a great opening as mentioned. With solar, I believe the next earnings calls will be very telling of the true impact, we could see revised forecasts, but I do not believe they will extreme enough for the current deflated prices. As such I expect a pop up at or before earnings. Hopefully in a week the EOS chain is finally up and running and we can see a return on some of our positions, although again I expect eToro will wish to wait a few days for stability and liquidity before enabling trading.

Canada is surprisingly hot, I am sunburnt, the F1 was one of the least exciting Canadian GPs in years, but I took some cool photos and it was nice to shift my attention for a few days. I’m heading to Toronto tomorrow then back to the UK in a week, suggestions on things for me to do while I’m here would be cool.


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