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11.01.2023

Advanced Crypto Assets: dYdX

DYDX tokens suffered a lot during the ongoing market correction and lost over 95% off their peak prices. dYdX is an advanced decentralised exchange, where clients can exchange cryptocurrencies and derivatives with marginal collateral. There are no KYC procedures to be followed within the exchange, as well as no need to disclose your personal data.

dYdX is runs on the Ethereum blockchain, known for its expensive transaction fees. However, StarkWare solution allows for lower fees as only commissions for trading are charged. The platform now runs on Layer 2 protocol which is incorporated into Ethereum’s main network. This solution allows for transactions to be conducted instantly, while traders do not have to pay miners for validating transactions.

Market players are closely monitoring the dYdX V4 vehicle, which is a standalone Cosmos blockchain, featuring a fully decentralised, off-chain, orderbook and matching engine. In other words, developers are going to create the entire trading infrastructure to scale up processes without involving any third-party applications. The service cancelled two stimulus programs in order to lessen the effects of inflation within the dYdX platform and to support token prices.

06.10.2022

Top 3 Financial Stocks: CME Group

CME Group is the largest market place for derivatives. CME stocks dropped by 25% from the beginning of 2022. The only reason for such a decline is the overall market correction and not any business issues. High volatility is a benefit for the company as it offers the most important derivatives to mitigate financial risks. Among those are the most popular S&P 500 index futures and other indexes linked to derivatives, agricultural products, gold, silver, and crude derivatives. So, the company continues to receive decent profit that allows for the payment of high dividends to its investors.

Free Cash Flow (FCF) of the company in 2022 is expected to hit $2.8 billion. CME is improving its efficiency as every Dollar received in 2021 was converted into $0.48 of FCF, while this year this figure is expected to rise to $0.55, and in 2023 to $0.57. Regular annual dividends is at $4 or 2.3% of share value. CME is also paying interim dividends. By doing so, it paid $3.6 regular dividend and $3.25 interim dividends in 2021, or $6.85 per share, slightly above FCF per share at $6.77.

CME has a solid business model and sound financials without substantial debt. These facts allow the management to take more care of the company’s shareholders. The current overall downside configuration offers great opportunities for investors to add CME stocks to their long-term investment portfolios.

11.08.2022

Perspective Peers of Ethereum: Avalanche

Avalanche is ranked by Coinmarketcap at the 12^th position by market cap with $7.8 billion, which is 4% less than Ethereum’s market cap. AVAX prices dropped by 82% of its peak values, allowing investors to buy it at early 2021 prices. Avalanche’s infrastructure consists of three logically isolated networks, each of these with their own processing, validators, and own set of rules.

This platform is often compared to the existing internet web infrastructure with core connection protocols like HTTP, surrounded by a huge number of networks to their apps. Avalanche allow for the creation of public and private systems as a blockchain or DAG (Directed Acyclic Graph) and for the use of different virtual machines for apps, including EVM engine (Ethereum Virtual Machine) that allows Enthereum network programs to be developed.

Avalanche includes C-chain to create smart contracts that are processed on an advanced EVM engine, P-Chain that coordinates validators that process transactions and also allows for the creation and management of new subnetworks, and X-Chain which is a directed acyclic graph regulating issuance and trade of cryptoassets. DAG systems record new transactions on top of the old ones, allowing for processing speed to be increased and for capacity substantially. It is quite different to other blockchains, where transactions are compiled in blocks in order to be processed.

The advantage of Avalanche is that it provides anyone with the opportunity to create his or her own isolated blockchain with its own set of parameters, including access to apps and the programming language with which it will work. Every subnetwork can process around 4,500 transactions per second compared to 14 processed by the Ethereum network.

15.09.2022

Safe Haven Assets for Long-Term Investments: Broadcom

Broadcom is an American semiconductor and infrastructure software development company. Soon it is expected to close a merger deal with VMware, a cloud computing and visualization company, that will open new cross-sales opportunities for Broadcom to boost its revenues. Broadcom stocks are now 25% off their peak values.

According to the Q3 FY 2022 financial report that ended July 31, consolidated revenues grew by 25% year-over-year to $8.46 billion, and EPS went up by 40% to $9.73 per share. The semiconductors segment, that added 32% year-over-year, was the primary driver for the company’s profit. The company’s free cash flows (FCF) topped $4.3 billion, allowing it to spend $1.7 billion on dividends and 1.5 billion on the shares repurchase program. The company is planning to continue spending at least 50% of FCF on dividends that added 43% every year on average since 2016.

According to the Q4 FY 2022 forward guidance, the company is expecting its revenues to go up by 20% year-over-year to $8.9 billion and for EDITDA to go up by 25% to $5.6 billion. Broadcom has great experience in expanding its product portfolio by M&A operations, and apparently it will continue on this way. The company is also expected to benefit greatly from the $52.7 billion CHIPS bill in the United States.

15.12.2022

Three Undervalued Value Stocks: Costco

Costco Wholesale Corporation has presented quite disappointing earnings report for the Fiscal Q1 2023. Revenues were reported up 8.1% year-on-year to $54.44 billion missing expectations of $54.65 billion. This is obviously not the reason for long-term investors to remove COST stocks from their portfolios as the company is set to maintain strong financial discipline and cost structure, not to stimulate high growth in the short term at any cost.

The operational margin in financial Q1 2022 was at 3.4%, and in Q1 2023 it was 3.2%. Costco is aiming to provide the most reasonable prices on their products to keep their clients loyal. That is why the operational margin is suffering. Meanwhile, EPS was up by 4.4% to $3.1, and membership fees rose by 6% year-on-year. So, the strategy seems to be buying itself.

Inflation in the United States is expected to return under control over the next year. So, there will be no need to deliver various marketing activities like coupon sales and others while loyal clients will be grateful for the support during the period of uncertainty. Costco is planning to open 24 new stores in 2023, increasing its potential to generate revenues.

Rafael Quintana Martinez

Money Manager de alto rendimiento, con una sólida formación académica, profesional y de campo. Más de 9 años de experiencia especializada en el comercio de mercados financieros internacionales. La devoción, la fiabilidad, la responsabilidad y la ética impulsan mi vida. Actualmente me desempeño como Analista Senior para Metadoro. https://metadoro.com/es https://mx.investing.com/members/contributors/235587671/ https://es.tradingview.com/chart/EURUSD/rE9gVips/

17.12.2024

Going Long on Xerox Rebound

Xerox (XRX) shares have been in a downtrend since March 2021, having lost 68.0% to $8.72 during this period, and even fell by as much as 70.0% at one point in early November. This represents a very sharp decline. However, each time the price reaches trend support, it tends to rebound by 20.0-30.0%. This pattern appears to be repeating now, as XRX has retested the support level and looks poised to continue its recovery. The upside target is set at $11.00-12.00. I plan to open a long position at $8.50-9.00, which presents an enticing upside potential of 30.0% that should not be overlooked. A stop-loss can be placed at $6.00.

XRX

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Rafael Quintana Martinez

16.12.2024

Fantom Upside Potential Is Seen Depleting

Fantom (FTM) is up 2.2% this week, trading at $1.3890, mirroring the broader crypto market where Bitcoin (BTC) has gained 2.0% to $104,800, retreating from its record high of $106,664. FTM recently set a 32-month high at $1.4765 but faces overbought conditions while attempting to hold above the $1.4000 resistance. The token’s upward momentum could push prices to $1.6000, though further gains appear unlikely unless Bitcoin surges to $110,000, which would support a more extreme rally in altcoins.

FTMUSD

246

MetadoroIn-house analytics

13.12.2024

The Dollar Is Picking Up Steam

The Greenback is set for the third consecutive month of growth, as the U.S. Dollar index to commonly weigh the world's major reserve currency against six others already climbed from nearly 100.5 on last day of September to above 107 by mid-December. The European Central Bank's and the Bank of Canada's decisions to lower interest rates by a quarter-point to 3.00% and by a half-point to 3.25%, correspondingly, certainly made a definite contribution to the U.S. Dollar rally, as well as the European Central Bank head's notice that some policy-setters had proposed a larger, 0.50% cut, with the door clearly opened for further cuts. China's stimulus measures agenda against the country's deflationary flags and global trade war ghosts taking shape under incoming president Donald Trump also work beautifully to the advantage of the U.S. currency dominance. The downside economic risks in the Eurozone and some other regions are here. However, the Federal Reserve's (Fed) cut-now-and-then-wait signals presumably have played a central role in further drop in EURUSD, GBPUSD, AUDUSD, NZDUSD, as well as a sharp increase in USDJPY.

The U.S. Dollar-nominated borrowing costs are still higher, with futures traders on CME pricing a more than 95% chance of decreasing the Fed's target range by 0.25% to 4.25%-4.50% next Wednesday, December 18, but only a 20.7% chance of another one dovish step at the end of January. March 19 March could be the next sticking point for further small rate cuts, yet that cannot be taken for granted, as only 60% are ready to bet on this rate cut scenario for the first half of 2025, according to CME's FedWatch tool. As an example, San Francisco Fed president Mary Daly, represented this typical mind-set this week by saying that she was "comfortable" with possible cutting rates in December, but having "a more thoughtful and cautious approach" on further reductions. Partial and normally intraday retracements above 1.05 in EURUSD due to a profit-taking activity before the end of the week should not lead anyone astray about the general direction on the foreign exchange market.

Such episodes of pointless price movements are seemingly reminiscent of a rather controversial initial response of the crowd of traders to the U.S. non-farm payrolls on the first Friday of December. The latest slice of the U.S. labour data, including 227,000 new jobs after suddenly declining to 36,000 a month ago, and a 0.4% average hourly wages surplus in November to lead to a stable 4.0% growth of personal earnings YoY, are solid pro-inflationary arguments to stop the Fed's policy makers from drastic steps. A small nominally rise in the unemployment rate from 4.1% to 4.2%, with a dip fear of being too late to prevent sliding into recession in the future, are the only drivers for the Fed to keep cutting rates. Therefore, the spike in EURUSD to nearly 1.0630 on the labour data set of December 6 was only a good excuse for selling this uptick to pressure the single currency below 1.0550 during the same trading session and then to drop to the area around 1.0450 in the next few days.

We suppose the market would deal in a similar way with some current upticks above 1.05. Thus, the next target range for EURUSD looks to be between the annual low of 1.0332 and 1.0375, with a retest below 1.25 as a basic scenario for GBPUSD. More annual dips for the Aussie and Kiwi, as well as fresh highs above 1.45 in USDCAD, are widely expected by year-end.

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Rafael Quintana Martinez

13.12.2024

Ethereum Intitates a PullBack to $3,500

Ethereum (ETH) has declined by 2.5% this week to $3,896, mirroring broader crypto market trends where Bitcoin (BTC) remains stable at $100,400. Earlier this week, ETH experienced a sharp 12.7% drop to $3,484, triggered by the announcement of Alphabet's new quantum chip, Willow. While the direct impact of this news on Ethereum is limited, it exposed the vulnerability of the crypto market, which appears to be losing momentum following its recent rally.

Investors showed willingness to sustain an upward trajectory at $3,600, leading to a rebound from this level. However, the recovery stalled near the $4,000 resistance, which remains a formidable barrier for ETH. The inability to break above this level indicates weakening bullish momentum. A pullback toward $3,500 has already begun and is likely to persist, reflecting the fading appetite for significant upside in the current market environment.

ETHUSD

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