Good Morning! Well after a nice week of vacationing in Colorado Springs and doing the Hogback Twister Motorcycle challenge out of Boulder, I am now back in Florida for Hurricane Season! However Florida is not the only place with a Storm, it seems the markets in general are ready for a downpour.
Starting with Bitcoin:
Bitcoin has been slow to develop, like watching maple fall from a tree in January. Slow slow slow and for those that can be patient, the wait will soon pay off.
As I mentioned in my previous article, nobody knew whether this was going to be an ABC corrective wave or adding additional legs on like D&E. Well it appears we have our answer, we were still consolidating.
This should not be of any surprise with a market overall hovering at highs it was going to be tough to break out of. Bitcoin is still not really considered a store of wealth, otherwise it would not be following the market, and it would be following Gold. Though it may become that in the future, there is little evidence that it is being considered a serious hedge vs Armageddon such as Gold and Silver.
There is a clear channel forming here and the question of course is do we break the channel for a leg lower or what we would call an Extended "E" leg, or do we stick here and look for longs. My money is on we have a leg lower to go, especially after seeing the selloff at the overnight market open.
Now 50k is a good area to start looking for longs, but I am not going to rule out a plunge into the mid to low 40's. This is as good as any place to add some more Bitcoin if we get down that low. I give it a good 50% probability that it does happen since the market may go into allright sell mode soon. But not quite yet, I am looking for a bounce after the open on Monday.
Lets take a look at the Q's
Nasdaq selling off at the pre-market open and boy is that getting some headlines. However we are right at the 18,000 support level so I am looking for a bounce here as the news is just too overwhelmingly bad.
Also we are now 13% off the high and this is generally where we get some longer term investors buying in. Next key support level is around 16,800 but that is a minor support level and we really do not have any broader support until we get down into the 14,700-15,500 area.
If we get that low I will be adding hand over fist to my long term portfolio . Either way I intend on adding to some better stocks on the way lower.
Right now I am short 200 shares of the Q's and also I am short two (2) Aug8 450 Puts.
I am looking for a bounce to close out the Puts or if they are assigned I will be cashing out of my trade with a fat $9600 payout. If you have followed me for any period of time I will be transferring this to my long term account and buying stock.
A nice 15% + overall on a 60k Trading account. This is real money and real trades, not some BS from self proclaimed broke ass wizard! This shows you do not have to trade all the time to make decent money. If you can get 15-25% a year on a trading account you are doing better than 95% of all traders.
Also this is not a place I want to short right now, I am actually more interested in selling Puts when we start to find support. Especially if we push another 5-10% lower.
So get your cash together as we are likely to get a good buying opportunity as the market resets.
Now for some Gold and yes I love my Gold!!!
Gold is also popping nicely on global recession fears.... Wooooo hooooo I am loaded up, and I am looking at the $2800 area to sell off some physical gold I have. Now keep in mind I was buying gold when nobody liked it, way down below $1200 per oz.
As far as a trade, I am looking for longs here, but need to see a decent setup ideally off the 2400 mark. However it is more likely to see a continuation setup. Either way I will keep you posted if and when I take a gold trade.
Overall
LONG Gold
Short Market
Neutral Bitcoin
Be patient my friends and I will update you as I make trades this week and it could set for an exciting trading environment over the next couple weeks and months.
Starting with Bitcoin:
Bitcoin has been slow to develop, like watching maple fall from a tree in January. Slow slow slow and for those that can be patient, the wait will soon pay off.
As I mentioned in my previous article, nobody knew whether this was going to be an ABC corrective wave or adding additional legs on like D&E. Well it appears we have our answer, we were still consolidating.
This should not be of any surprise with a market overall hovering at highs it was going to be tough to break out of. Bitcoin is still not really considered a store of wealth, otherwise it would not be following the market, and it would be following Gold. Though it may become that in the future, there is little evidence that it is being considered a serious hedge vs Armageddon such as Gold and Silver.
There is a clear channel forming here and the question of course is do we break the channel for a leg lower or what we would call an Extended "E" leg, or do we stick here and look for longs. My money is on we have a leg lower to go, especially after seeing the selloff at the overnight market open.
Now 50k is a good area to start looking for longs, but I am not going to rule out a plunge into the mid to low 40's. This is as good as any place to add some more Bitcoin if we get down that low. I give it a good 50% probability that it does happen since the market may go into allright sell mode soon. But not quite yet, I am looking for a bounce after the open on Monday.
Lets take a look at the Q's
Nasdaq selling off at the pre-market open and boy is that getting some headlines. However we are right at the 18,000 support level so I am looking for a bounce here as the news is just too overwhelmingly bad.
Also we are now 13% off the high and this is generally where we get some longer term investors buying in. Next key support level is around 16,800 but that is a minor support level and we really do not have any broader support until we get down into the 14,700-15,500 area.
If we get that low I will be adding hand over fist to my long term portfolio . Either way I intend on adding to some better stocks on the way lower.
Right now I am short 200 shares of the Q's and also I am short two (2) Aug8 450 Puts.
I am looking for a bounce to close out the Puts or if they are assigned I will be cashing out of my trade with a fat $9600 payout. If you have followed me for any period of time I will be transferring this to my long term account and buying stock.
A nice 15% + overall on a 60k Trading account. This is real money and real trades, not some BS from self proclaimed broke ass wizard! This shows you do not have to trade all the time to make decent money. If you can get 15-25% a year on a trading account you are doing better than 95% of all traders.
Also this is not a place I want to short right now, I am actually more interested in selling Puts when we start to find support. Especially if we push another 5-10% lower.
So get your cash together as we are likely to get a good buying opportunity as the market resets.
Now for some Gold and yes I love my Gold!!!
Gold is also popping nicely on global recession fears.... Wooooo hooooo I am loaded up, and I am looking at the $2800 area to sell off some physical gold I have. Now keep in mind I was buying gold when nobody liked it, way down below $1200 per oz.
As far as a trade, I am looking for longs here, but need to see a decent setup ideally off the 2400 mark. However it is more likely to see a continuation setup. Either way I will keep you posted if and when I take a gold trade.
Overall
LONG Gold
Short Market
Neutral Bitcoin
Be patient my friends and I will update you as I make trades this week and it could set for an exciting trading environment over the next couple weeks and months.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.