ETH - UnTiL wHeRe tHe BuLL RaLLy WiLL gO ?Greetings traders!
I am sharing to you today one of my COINBASE:ETHUSD Elliott Waves analysis.
That one is bullish until the summer '23
Fibonacci Extention from the bottom of the orange W to the orange X in order to find the orange Y
Fibonacci Retracement of the purple WXY, in order to know where the objectives converges to be more precise
Fibonacci Extention of the blue (ABC) to find the blue (C)
Fibonacci Extention to find the green extention 3 wave
Fibonacci Retracement to find the green extention 4 wave
Fibonacci Extention to find the green extention 5 wave
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BTW, I am selling a PDF , regrouping all the knowledge I have found on Elliott Waves, from the greatest analysts books, into a clear, simple and explicative way,
Contact me in private if you are interested
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Don't hesitate to comment and check my other idea
Depression
ETH - While the masses are BULLISH, Elliott tells you to SHORTTTHey guys,
Been a long time isn't it?
I'm back for new analysis.
Don't worry, the bull rally isn't over, we are just shorting hard in order to have a 50% of bullish variation just after.
I will upload my Elliott Wave long term vision for the different chart that I analyse: SP:SPX ; NYMEX:CL1! ; COINBASE:BTCUSD ; COINBASE:ETHUSD ; FOREXCOM:XAUUSD
I will explain how I count my waves and I found my objectives
FOLLOW ME TO NOT MISS ANY OF MY FUTURE PLANS
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BTW, I am selling a PDF , regrouping all the knowledge I have found on Elliott Waves , from the greatest analysts books, into a clear, simple and explicative way,
Contact me in private, or in comment if you don't have enough reputation point if you are interested
*
*
Don't hesitate to comment and check my other idea
ETHUSDT Movement Analysis from February 2023 to October 2024ETHUSDT prediction analysis using distances between important pivots and fibonacci retracement of ETHUSDT last cycle in the current cycle and the Wall Street Psychology of Market Cycle.
We are currently in the Depression phase.
Is Disbelief around the corner or in 2024?
I think it is in 2024.
A Pause on Consumerism Christmas
Personal Savings are at a historic low, Consumer Credit at highs, and Inflation hasn't popped. The United Kingdom and other leading Eurozone parties have proclaimed their Recession, as the Federal Reserve, BEA, and Executive Branch fight against Wall Street Banks, Wall Street Megacompanies, and basic economic equations contradict each other regarding the US's. Q3 GDP came in positive due to a massive decline in imports caused by overstocking through the first half of the year as every company listened to Jerome Powell and bought inventory. Inventory that is now looking to start hitting sales prices on the back of continued consumer weakness starting hardcore in September, a massive deflation in shipping costs, some energy costs, and a big tick down in demand. Still, the money isn't there for American consumers amid high usage of credit cards in the environment of an ever-inflating cost of living.
This analyst believes the most likely outcome is a continued destruction of consumerism, feeling especially heavy on the back of a great Q4 Holiday season in 2020 and 2021 - bigly in thanks to monetary inflation. Lower wage workers have been struggling through the regular life costs amid continuously weak consumer and manufacturing surveys, even with a massive surge in domestic manufacturing construction. Mid-line income earners are in an environment of increasing recession expectations as big Tech are reducing numbers. And while the BLS stick to claims that there are two jobs for every one person looking for work, the underlying environment dispels this illusion. Failed banks aren't the only ones firing workers. Twitter was among the most successful social media companies and hasn't made a profit in history. Amazon's Alexa is being touted as one of the biggest tech failures in modern history, with 10k workers set to bite the dust on the first go from a company that has become the quickest to lose $1 Trillion in Market Cap. The rest of the tech industry is sitting in their own layoffs in the early days of a recession that not all can agree on.
The increased probability of a weak Holiday sales period carries increased chances of continued layoffs from core business units and non-core. Amazon's Alexa might be one of the most unprofitable elements of a business that is now looking at dramatically reduced online-consumer spend after a year of reducing warehouse space and inventory while Unionization boomed. Google has shut down most of it's "Moonshot"/incubator projects along with peers, meaning they aren't seeing the Profit in business ventures they don't already master, hinting at a bad look for the space. Congruent to the destruction of the active economy, Stock market valuation deterioration hits at savings and spending now-on. Mortgage rates doubling stresses an already-dubious common ability to buy, thus reducing an already thin depth of bid.
I believe we will continue to see degrading macroeconomic environments with a mix of good and bad news for the future as various international economies start to rotate through the current trends and into their future. A mix of extreme pessimism and optimism as the loudest Bulls and Bears continue screaming before the Holiday season, volatility will continue to be high. With a higher skew towards downward pressure, expect some strong similarities and contrasts to last year. The New Year Bump and Drag will likely be a big repeat, with potentially compounded effects. From a socio-psychological stance, I believe the consumer environment is primed for less push on fancy gifts as the narrative grows on Corporate Profit Greed being the greatest pusher of inflation - which is correct in the context that the Federal Reserve and an out-of-depth Government enabled and allowed it.
Disclaimer
This is in no way, shape or form, fluid and function, an analytical, qualitative or intelligent compte rendu. The function of this essay is the maddening diatribe of a curious mind, and how this one manages micro- and macro-economic data for a critical investigation into the micro- and macro-economic world. This text is not suitable for direct consumption, and should never be used as a primary or secondary source. The contents of this text are often illogical and offensive, and great care should be given to the reader's personal qualifications and senses. This text is delivered on TradingView, where the userbase is expected to have a level of financial and investigative understanding that would enable them to query appropriate thoughts and abdicate nonsense to the void. May whatever sovereign and omnipotent being you believe in, guide you through this.
The Great Reset!!!CAUTION ONLY BIG BRAINS FROM HERE ON OUT!!!
White: US 10 Year Bond Yield
Orange: US Debt to GDP
Blue: US yoy inflation
"Inflation transfers wealth from creditors to borrowers for all sorts of nominal debt, not just government debt." -- Christopher J. Neely, Vice President at St. Louis Fed.
What is the Great Reset? Is it a new 1929 Crash, a new Great Depression? No. The real Great Reset is the controlled writing down of US debt-to-GDP which has reached unsustainable levels and surpassed those at the end of WW2. In fact this chart only shows government debt (orange), in truth when you add corporate and all other forms of private debt, you get a figure currently in excess of 700% of GDP.
People believe inflation is the problem, they don't understand that in most of the world it is a tool for writing down debt. This was also the case in the US after WW2.
How do you write down debt measured against a country's productive output? Well, the easiest way is to increase GDP, but because in reality growth is limited (in some cases almost zero), it's easiest to do this by increasing the nominal value of GDP by ramping up inflation:
Nominal GDP = Real GDP * inflation factor
So by increasing inflation we increase GDP nominally and we decrease our debt with respect to productivity.
So what does this have to do with the chart? Look what happened after WW2, when bond yields bottomed and debt-to-GDP peaked. These two reversed over the next 40 years until 1980, when they reversed again. Look what happened to the long-term inflation in that same 1945 to 1980 period: ignoring the many short-term spikes (known as surprise inflation), the curve slopes exponentially upwards, gently at first until culminating in the inflationary spial of the late 1970s. This same process is beginning again. We will see many short-term inflation spikes in the coming years (surprise inflation) but they will mask an underlying increase in long-term inflation. What does this mean? It means your savings will be wiped out with respect to purchasing power. It means diversify into bitcoin and other dead (non-productivity related) assets over the coming decade and decouple from the fiat.
The same principle applies to Eurozone and other so-called developed countries with excessive debt-to-gdp ratios.
Further reading:
St. Louis Fed blog entry "Inflation and the Real Value of Debt: A Double-edged Sword"
Russell Napier interview "We Will See the Return of Capital Investment on a Massive Scale"
The truth is wealth is being transferred from the creditors, i.e. the citizen, to pay down government debt: as your savings lose purchasing power, the value of debt also vanishes. This is really why we say inflation is a tax!
DXY has left the LAUNCHPAD... destination 160+DXY has left the LAUNCHPAD and is unlikely to return home until its surpassed 160!
From the chart we can see that DXY has...
- Emerged from the falling wedge with a measured move target of +72, taking us upto 160 OR BEYOND
- Has retested the falling wedge trend line and created a double bottom support
- DXY has performed these feats before (1980-1985) and is showing a similar emerging shape in the chart pattern and RSI
- If history repeats, we can expect this trend to continue through to Approx. 2025
Once these trends establish themselves its highly UNLIKELY that they do not go on to fulfil their potential. TIME IS RUNNING OUT for the DXY to get off this trajectory.
CONCLUSION: Long the DXY, Hold your DOLLARS
GOLD is a BIGGER BUBBLE than the S&P500?? Look away gold bugsThis chart shows GOLD and S&P500 on the same % change axis since 1965.
Based on this timescale, GOLD has had a GREATER % rise in price than the S&P 500.
But hang on, isn't GOLD price supressed and is the only asset class NOT in the EVERYTHING BUBBLE?
FALSE NARRATIVE!! Zoom out to this longer time scale and see that GOLD has also ascended into NOSE BLEED BUBBLE TERRITORY, its just timed its climbs different to equities. +++ It gets worse.... GOLD has painted a HUMUNGOUS double top which is now bearing down a top of the gold chart.
CONCLUSION: Gold is every much as part of the everything bubble as STOCKS and REAL ESTATE. GOLD will not be a safe haven and will fall in a similar way to stonks (MASSIVELY) in the coming depression
Gold is going to CRASH!! +++ Bitcoin chart proves itThis side by side comparison shows the similarity in the evolution of GOLD and BTC price.
Over a longer time span gold is painting EXACTLY the same DOUBLE TOP after parabolic rise as Bitcoin has done.
Gold price is up +4,600% since 1966. Compare this to the S&P500 which is up +4,300% over the same time span. Gold price has NOT been supressed, this is a false narrative.
The conclusion: GOLD is every much as part of the everything bubble as Stocks and Real Estate. Expect the coming depression to burst the bubble and for Gold to continue its rhyme of the Bitcoin rise and fall
SPX - A NEW BULL RALLY INCOMING ??Hey traders,
Looking at the chart thanks to the Elliott Waves analysis, I am able to have one of my plan to find a bullish rally in this bear market.
It has a lot of probability that it will arrive in order to do the orange X of the WXY of the blue Y .
It will be done when the orange W will touch the 50% of Fibonnacci retracement of the entire bullish trend from the march 2020.
The objectives are therefore:
1/ 3530-3480 (most probable before a massive bounce)
2/ 3442-3387
3/ 3322-3272
4/ 3230-3185
In my opinion, it is therefore possible that we will be ending this year on this bull rally, before dropping for the orange Y in the first months of 2023.
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BTW, I am selling a PDF , regrouping all the knowledge I have found on Elliott Waves , from the greatest analysts books, into a clear, simple and explicative way,
Contact me in private, or in comment if you don't have enough reputation point if you are interested
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Don't hesitate to comment and check my other idea
ASSETS /INFLATION DEFLATION JUST STARTED Since 1971 ALL ASSETS have inflated based on the start of M2 and the start of money velocity . it is just starting down housing BUBBLE is about 5 x of 2007 as is the pension system . when it is over it will be a very DARK TIME and a NEW System . FIXED money . CASH AND T BILLS ARE THE ONLY SAFE HAVEN !! I HAVE WARNED OF MAJOR CIVIL ARREST and having a good 1 yr of dry goods something to protect you and you family . and move as far away from any city or state thats BLUE
Fixed and Basic Income During Recessionary TimesThe talk of economists these days seem to be "Cash is King" (esp USD) vs "Cash is Trash". While it's true that a lot of people are liquidating their assets now in favor of dollars, given that our economies are interconnected more now than ever before, this might only last for a very short period of time.
While the market is likely to go into panic mode soon (the top-earners are finally getting a *tiny* taste of what people below them have been going through for years) it might help to take a step back and look at the bigger picture since most of the problems with the economy right now are existential, not technical.
Sort of a throwback to my #YangGang days with Andrew Yang, but UBI would have been pretty nice to have right about now. Yes, UBI does help alleviate poverty, but it also helps stabilize economies and labor markets during difficult transitions as well - that's what it was designed to do originally, and it is a brilliant idea that is literally good for *everyone*.
As stock/asset prices start to plummet, everyone is talking about moving their money to "fixed-income" sources now, to help stop the "bleeding". One of the silver linings of the recession is that there seems to be higher demand for labor, which could potentially increase wages and stabilize the economy that way - but people do need time to adjust and learn new skills to find new work. UBI does both in a simple and elegant way.
One of the big criticisms of UBI was that it would cause inflation since it would bring up the costs of everything. It's ironic to see how inflation became the talk of the town now despite the opposition coming from both sides of the political spectrum. Purchasing power is relative - the way to look at UBI from a budgeting standpoint is that you're dedicating a % of your total funds toward stabilizing the economy, which - again - should be good for everyone.
Hindsight is 20/20 and unfortunately we're now forced to work with what we did (and didn't) do thus far. Many economists - including major ones - have been eyeing cryptocurrencies as a potential "safe haven" during the market crash that's likely to continue well into 2023-24. How likely is it for people to turn to crypto during trying times?
Staking rewards are currently outperforming bank interest rates and may become more appealing over time, while crypto projects based around the concept of UBI may start to gain favor as the top-earners realize that these models are in their own interest, too. (It's a big *if*, but UBI-tokens might be the thing that ETH needs to revive its lackluster performance post-merge, imho.) Most investors are running towards cash for safety now but if that fails too, there will be no options left. That's when crypto may finally see its day - time will tell.
www.theguardian.com
The End of the Deflationary Asset EraDeflationary assets - aka artificial scarcity - is a product of the mediocre mind. Exponential growth and real social progress comes from the idea of "growing the pie". It's weird how people don't use that phrase anymore since it has become such a foreign concept at this point.
Bitcoin (and now Ethereum), NFTs, real-estate (both IRL and the metaverse), healthcare, education, and the economy as a whole has succumbed to the "scarcity mindset" and is in danger of collapsing on itself since it doesn't know how to grow its ecosystem from its base.
Those mythical 100000x returns doesn't come from flipping or nickle-and-diming individuals but from growing the ecosystem as a whole. To keep the good times going, the response should be to increase capacity, not try to ration out your existing stock.
Ethereum was particularly disappointing to watch this year because they had the capability to be so much more but chose the mediocre path when they started burning their own supply. Like Bitcoin, they put an expiration date on themselves and can now only expect modest returns from here on out.
To be fair, "growing the pie" is very difficult and requires a higher degree of creativity and ability to spot new win-win scenarios from seemingly thin air. But that's why we have geniuses and entrepreneurs to fill that role that typical biz-dev types are unable to do.
As the scarcity economies continues to do what it does - shrink - it's unfortunately going to take innocent bystanders with them. We're going to find that most of our tax dollars have been working to keep the illusion of sustainability rather than of real growth.
But the silver lining is that as the status quo continues to implode on itself, the opportunity to grow the pie once again becomes possible. It's a cycle that has happened before and will happen again. With that, it's at least possible to navigate through the chaos. Good luck, folks. 🤞
USD Index Recession Depression and TransgressionGood Morning All ,
It has been a long while since I posted, but it has also been along time since I have been active in trading as well. i squared off my positions and just been speculating and watching the craziness that continues to unfold. For some of the OG Traders out there you might have come across my stuff in the past, but for some of the new guys new to trading what a time to be alive. To re-itterate some points I have made in the past I am not political I consider myself a centralist with right sided tendencies. (because of my views about business and taxes) . this post will be rudimentary in aspects for people that live here in the US. So if not interested then skip the italicized section.
okay, what we have here is the dollar index, and its basically a measure of strength of the US' economy against 8 other countries. Now, I live in the US and here is a very basic political breakdown of our political system
republicans- it's the political conservatives of the country and business liberal. Meaning that they hold traditional values when it comes to policies and encourages borrowing for business growth and borrowing for political agenda.
Democrats- it's the political liberals of the country and business conservative. Meaning they hold progressive policy values and encourage high taxation to fund their political agenda.
We need both in the US to keep the balance to much right sided-ness we fall into a communists like state and too much left sided nss and we fall into the hands of socialism. so a health mix of both is needed to keep us in check.
Now, the world is coming into hard times because of the US' liberal fiduciary policies as of late and now we are trying to reel that back. The US is the world reserve and will continue to be for the foreseeable future, and the reason i say that is I don't see the world entrusting China to report the truth of the Yuan's value if it were to become the reserve currency of the world. I know a lot of people think that china is the next super power to rise and become the reserve status of the world, but until they become more transparent i don't see it happening. The only country I see rising to take that spot is the UK. They have the second largest FREE trade economy of the world, and could potentially return to the reserve status. The EU stands a chance, but I don't see Germany being able to support the world economy that would be required to make the EU possible. Basically, which demon do you want to deal with, because none of the options are ideal.
Now, if some of the EU countries that takes from the Euro really step their game up and produced for more the euro instead of take then they could become a viable option too, but as far as china I just don't see the world entrusting them to hold that type of power. I mean their housing market is currently a Ponzi Scheme, and their having to use military force to keep citizens from breaking into the banks to get their money back out. The US' SEC a year or two ago placed harsh restrictions and banned a lot of Chinese companies from the US open tradable market, because they were cooking their books and inflating earnings and deflating expenses, and rumor has it that the chinese government knew about it and allowed it, to continue to boost their economy via foreign monies.
Back to the Dollar, the Dollar index has an inverse relationship with the NASDAQ, S&P 500, and the Dow Jones Industrial Average.
Why?
Because, the DXY is a visual representation of the current status of the Economy. When the dollar was in the 8X's the last two years times were good, people were making a lot of monies while spending and living the good life?
Why? because the Fed made money cheap. So, the cost of doing business was cheap profits were just as large as the margins. So, business operations got fat in the sense of a CEO or C-Suite personnel needing 2-3 assistants and having bean counters to double check the primary bean counters. Now, Powell has consistently held to his target inflation rate of 2% its all over the FED's website and echoed in his speeches. which is the reason of his 75 base point interest rate hikes.
What I see coming is another Great Depression. Because for many of the technical traders in the world there is more to a company than numbers on a chart. Investors large and small make monetary contributions to these companies in return for returns. well during COVID-19 money flooded the market and business were able to continue to run. Since the beginning of COVID I knew a lot of businesses were in trouble because they were publicly reporting inflated numbers to the SEC, and the SEC TOOK THEM?!?! So it looked like these businesses were doing way better than they actually were, and now their board of directors and shareholders expect them to continue to run at that level.
Now, that money is drying up and these businesses are about to lose their funding from both ends. On one end their investors (already starting) are squaring off their positions. So, one way to prop up the facade of success is to do massive layoffs to trim the fat. Run the business very lean. That doesn't boost revenue that really just stabilizes the load. putting a plug in a hole on a boat as it were. These massive layoffs lead to lower GDP and two consecutive reports of shrinkage equals a recession.
The Fed Continues to raise interest rates making the dollar expensive to do business. When someone looks at a business' 10K and finds their balance sheet or earnings they will see massive amounts of debt. this debt is typically owed to a major lending institution. These loans, though not designed for the purpose, they are used to fund operations and growth. good businesses have cash on hand to pay off loans in times of hardship and inexperienced leaders are frivolous with the tax-free money. When this money becomes more expensive businesses can no longer afford to take loans out and are forced to remain the same, shrink, sell-out to a competitor, or go out of business all together.
part of the problem is that it now keeps people working because they lost 10-12 years out of their 401k due to the stock market correction, students coming out of college with massive amounts of student loan debt and are forced to take a job making 10-15 dollars an hour with student loan payments being around 300-1000$ a month which will lead to defaults because they cant afford to live alone, and are going to move back in with their parents. and hopefully their parents are not retired, because if so they're going to have to help their family with utility bills and mortgages and care less about their student loans. much less if their parents don't make the cut at work due to the layoffs.
Now, this causes a major problem because those once employed people are now jobless and can no longer keep their payments to their mortgage company. And now these mortgage backed securities are going to start imploding on the people that bought them and repeat 2008.
This is just the inherit fallout of these type of securities. I mean i understand their purpose, which is used to get back money to keep the velocity of money up, but no matter the credit score if a person loses their job and can not find work then payments are going to be missed.
this will ultimately lead to a depression.
what saved us last time from a depression was the US " FOUND " weapons of mass destruction and we launched an all-out attack on Iraq. and then when we finally "FOUND" said weapons we then decided to focus our attention on the people that attacked us on 9/11. But, this is not the only time the US used war to re-bound out of a depression, WW1 aka the great war ramped up our economy and we were magically out of a depression and then shortly aft Dub Dub 1 we found ourselves in Dub Dub 2. the pattern is repeated over and over in our history. the cold war got us out of the stink in the mid 80's with the cold war, and gulf war in the 90s.
will the US find Hillary Clinton's Emails in China and now we go to war with china? Who Knows. (this was sarcasm)
I think we need a business savvy executive whether man or woman to be elected as president and get the country back on the rails. We need good monetary policy in place, we need to support small business here in the states to keep big businesses from becoming monopolies and drive prices down. we need more diversity in the economy. Because a more diverse economy = a cheaper place to live.
with all of that being said I forsee dollar to continue to get more and more expensive with the minimum being 12X.xx, median being in the 14X.xx and the maximum being somewhere around 15X.xx. I see interest rates forcing everyone's hand to show what their hiding. I see weak businesses going under, smart strong businesses staying afloat and will grow exponentially when the storm passes.
another potential thing is that the FED might think they over extended and might bump interest rates down or keep them the same for a brief time (this is a temporary fix), but I still see them raising rates to get back to 2%.
this is not financial advice, but my play book is to continue to sit on liquid cash and I would say a good indicator for me to jump back in is to see 4 or 5 maybe even 6 Fed meetings where the interest rates remain unchanged or begin to drop consecutively. So gather all your pennies, begin to live lean, and when the fed begins to keep interest rates unchanged begin to look at who is still walking around Wall St. and think about investing with them.
i do think if the US votes with their intelligence and not their emotions we can avoid all of what I wrote. and I truly do hope I am wrong!
@TayFx crazy to see man how two years ago we were called perma-bears and crazy and now we look like Wall St. prophets. LOL Hope all is well bud! HMU when you get a chance!
SP500 vs M2When comparing the performance of the SP500 to the expansion of the money supply, you get a completely different picture from a traditional SP500 chart. Instead of a lost decade, try 2 1/2. We're below the levels we reached in 1995, before much of the dot com bubble. A little TA suggests we could fall 10% (3200) to 30% (2500) before this is all over. I'm definitely getting a lot of 2000-2003 vibes from the economy right now, while others are comparing it to 1929-33.
During Recessions, Cash is King - Where Does Crypto Fit In?During recessionary economies, the money-classes that take the biggest hits are usually assets - stocks, real-estate, speculative assets, which, yes, also includes NFTs. As they say, during tough times, "cash is king". As we get deeper into it, we're going to see a big shift in the way people use and talk about their money.
For crypto investors out there (or anyone in general who wants to prepare themselves for the new era that's about to unfold) the things to keep in mind are:
- Asset ownership tends to skew upwards in the income bracket, which means that there will be lots of doom-and-gloom narratives coming from the top. For most people a "market crash" will be a good thing (better than getting priced out by inflation, anyway), and the result will be that the top earners will have slightly less money in relation to the bottom, evening the "playing field" so to speak.
Take everything you read with a grain of salt, either way.
- Cryptocurrencies are in an interesting position where they're able to function both as assets AND cash - even legally, the definition of where the technology lies in regards to the two is still unclear. But we see that some coins tend to "lean" towards one end of the spectrum more than the other. Bitcoin is largely classified as an asset ("store-of-value"), Ethereum is the former trying to move towards the latter (the "merge", "sharding"), though the fate of the latter is still unclear.
Dogecoin, on the other hand, may actually see a bump in interest due to the fact that it's currently treated more as cash than an asset. (The chain also has plans on moving towards Proof-of-Stake, though the timeline is still unclear.) If cash is king, the loveable Shiba Inu mascot may, in fact, be the one to dethrone King Bitcoin sitting at the top.
- The strategy for most investors during recessionary times will switch from "beating" inflation to "keeping up" with inflation - inflation will naturally drop as interest rates rise, eventually reaching an equilibrium. This presents an opportunity for coins that offer reliable staking rewards since they're currently beating the banks by a very large margin right now. (Some banks are still stuck at 0, for the record.) The average person is likely to benefit from this transition in the long run in the form of cheaper goods. (Especially for essentials, which are obviously out of control right now.)
- The 0 interest rate decade-long experiment in the US economy is about to come to an end, having peaked during the COVID era where money-printing and cheap loans became at an all-time-high. (Some would describe it as the "apocalypse economy", but that's for another discussion altogether.) Many "Web3" startups of last year were part of that cash grab, and will likely run out of runway in 2023-24. (If you're having second thoughts about the "investments" you made last year, the time to get out would probably be now, in other words.)
- As interest rates rise, it will get exponentially harder to raise money, even for Web3 projects. CEOs and founders will be chosen for their ability to generate revenue and turn a profit, rather than their marketing and fundraising skills. (The current crop of "thought leaders" we see in public today are a result of the low-interest "casino economy" we had over this past decade.) We're likely going to see a dramatic shift in the way people talk about startups in general, cryptocurrency projects included.
- Higher interest rates will encourage people to save rather than spend, which will also change the focus of the types of products and services that companies and startups start to offer to the general public. The economy having been in overconsumption mode for so long, this will be a big adjustment for most people out there.
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Long story short, there will still be ways to "come out ahead" even during recessions, but the benefits will be more complex than seeing the numbers in your bank account simply going up. It's more that you're losing less money relative to everything else, which, in turn, increases your purchasing power overall. (If you're making the same money but rent gets cut in half, for example, you're still "winning".)
I still do believe that in the long run the recession will be a good thing for most people, and that the economy will come out stronger after the dust eventually settles. The path to getting there, though, will be a rough one no matter how you put it. Good luck folks. 🤞
Natural Gas - A Maniac Market MakerI find the market makers of the Natural Gas Futures market to be particularly wild savages. The recent dump from $9.5~ to $5.3~ is a fine example of how difficult they make getting long.
They're like a world class bull at the rodeo. You get a lot of points if you can ride one, but their Buck Off % is like 90%+.
Natural Gas is going to $13-$15 and it will very likely do it before 2022 is out The reason is to make it so that North Americans can't afford to heat their homes, especially amid all the other inflation and losing money crushing the middle class.
But you should also know that this recent pump to $8.5 was both too direct and too easy. The shake out is coming, and it's not going to be very pleasant. Look for numbers in the low 6s and high 5s and look for these figures to come painfully fast and with little warning.
"Fundamentals" don't matter. You keep listening to a propaganda network masquerading as a public intelligence organization that calls itself "the news" and wondering why your compass is broken and you can't figure out what is going to happen.
Life is hard and nobody wants you to be rich. Nobody wants you to survive the economic depression that lies ahead. The idea of the establishment is that they will do what they have planned to do, and if you're good enough, you will make it. If you aren't good enough, you will be weeded out.
This is fundamentally evil, and while there remains hope and the evil will ultimately fail in its plans, these are nonetheless the scenarios that will unfold, because all of humanity has abetted this for more than two decades.
So, you have to do your best and stop going with the flow. Stop adding fuel to the flame.
Long NG1 at high 5s and low 6s with a stop under $5.30. The real target is beyond $10, but $10 is coming.
Natural Gas is unrealistically cheap in North America compared to Europe and other parts of the world right now. This won't last. But getting there on a long trade will not be so easy.