A Bob Hoye bitcoin buy signal

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How many bulls does it take to change a light bulb? None, says Bob Hoye from ChartsandMarkets.com, "Because light bulbs never burn out and neither do bull markets".  In his May 10th broadcast, the market historian suggests we are seeing signs of a top in the market, including a recent headline, "The US stock market can't stop, won't stop its endless rally".

Hoye: Do light bulbs and bull markets go on forever?

However, Hoye points to on-going disturbances in the financial markets including Turkey and a falling Swedish Krona. Hoye explains how in a major contraction outlying economies are typically the first to get into trouble before problems hit the major economies. "Let's not ignore reality", Hoye warns.

In terms of protectionism, he also warns it will flare up during an economic contraction, and his guess is that it will happen again. "It won't be a pretty sight", says Hoye.

In the short-term, he sees a correction ahead for the US dollar accompanied by some stability in the stock market until sometime in June. Looking a little further out, he will be focusing on seasonal patterns. In previous broadcasts, Hoye has warned that supportive financial conditions such as tight credit spreads often peak mid-year leading to trouble in the fall.

Just as the greenback appears prone for a potential correction, Hoye has spotted bullish developments for bitcoin. "A week or so ago we got a buy", reports Hoye.

It looks like the bitcoin itself is developing a bottom, from which at least an intermediate rally would follow

INK's top ranked blockchain related stock in Canada is Galaxy Digital Holdings (GLXY) headed up by Wall Street player Michael E. Novogratz. GLXY was ranked number 22 in INK's May Top 40 stock report.

Hoye also notes that there are currently some attempts to combine bitcoin, blockchain technology, gold and a senior currency into a new digital currency. He likes the concept because he believes it could provide for a sound currency, something which is lacking currently in the monetary system. Hoye believes the lack of a sound currency has been bad for the average citizen:

The notion of a national currency such as the Canadian dollar or the British pound that is not convertible into gold has been a disaster for the public. Of course, the only reason you have it, a currency that can be depreciated, is that the governments use it to transfer wealth and earnings from the private sector into the government sector. It has always been an evil that's been practiced for thousands of years.

He believes the public will eventually call for a blockchain-powered gold-backed currency that will be sound. In other words, a currency "that cannot be manipulated by bureaucrats and politicians for their advantage".

We hope Bob is right.

Disclosure: I hold Galaxy Digital Holdings (GLXY)

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