STEEM: a clear Double Bottom Pattern…

….and it would indicate something good for the price if STEEM wouldn’t have so much selling pressure from the wales and from @steemit in particular.

A double Bottom pattern is a Bullish Pattern that usually describes a change in trend and a momentum reversal from prior leading price action. It is normally accompanied for a divergence in some of the technical indicators and this is what we see at RSI indicator on the daily chart:

RSI Indicator:


MACD Indicator:

… as I said, if it was any other ALTCOIN I would not have any doubt to claim BULLISH Action on it but we are talking about STEEM which is being really controlled from those that state that STEEM is a decentralized blockchain….

Will see what happens next…in the meantime, I would try to accumulate as much as possible.


@toofasteddie

Intermarket Relative Strength Analysis Report For The Week Starting 7/22/19

Instead of looking at financial markets or asset classes on an individual basis, intermarket analysis looks at several strongly correlated markets or asset classes, such as stocks, bonds and commodities. This type of analysis expands on simply looking at each individual market or asset in isolation by also looking at other markets or assets that have a strong relationship to the market or asset being considered.

The US economy is still the largest in the world and the US dollar is still the most powerful currency in the world.  Over half of all foreign currency reserves in the world are in US dollars.  Thus, the asset classes relative strength will be compared to the US Dollar.

Bitcoin

30 Yr Bond

Copper

Euro Dollar

Gold

Oil

Soybeans

S&P 500

Based on the moving averages and the last daily closing price, relative to the moving averages,

the asset classes’ relative strength, relative to the US Dollar are the following:

This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.

World Stock Market Relative Strength Analysis Report For Week Starting 7/21/19

The Standard & Poor’s 500 Index (known commonly as the S&P 500) is an index with 500 of the top companies in the U.S. Stocks. Because the S&P 500 Index represents approximately 80% of the total value of the U.S. stock market, it’s the bellwether index for the U.S. stock market. In addition, the U.S. stock market is the largest stock market in the world, it’s also the bellweather for equity markets around the world. The S&P 500 is arguably the most important stock market index on the planet.

Source Image

Because we live in a global economy, the global equity markets interconnected and highly correlated.  However, some will outperformance other in the short term and long term. When constructing an equity portfolio, for the best returns one needs to have the ability and the capacity to assess all the major equity markets around to asset allocation purposes.  However, the first step is to determine the relative strength of the major equity markets, relative to the bellweather, the S&P 500.

DAX (Germany)

Dow Jones (US)

FTSE 100 (England)

Nasdaq (US)

Nifty 50 (India)

Nikkei 225 (Japan)

Shanghai (China)

Russell 2000 (US)

Based on the moving averages and the last daily closing price, relative to the moving averages,

the world equity markets’ relative strength, relative to the S&P 500 are the following:

This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.

SPDR Sector Relative Strength Analysis Report For Week Starting 7/22/19

Sector rotation is the action of shifting investment assets from one sector to another to take advantage of cyclical trends in the overall economy in an attempt to beat the market.  Sector rotation seeks to capitalize on the theory that not all sectors of the economy perform well at the same time because sectors of the stock market perform differently during the phases of the economic and market cycle.

For example, defensive sectors such as consumer staples, utility and health care stocks tend to outperform during a recessionary phase, while consumer discretionary and tech stocks tend to fare well during early expansions.

When you trade, you want the strongest stocks in the strongest sectors, which is why you should monitor sector performance carefully.  With that said, lets determine the relative strength of the sectors relative to the S&P 500 ETF, SPY for the upcoming week.

Communication Services (XLC)

Consumer Discretionary (XLY)       

Consumer Staples (XLP)   

Energy (XLE)                

Financials (XLF)           

Health Care (XLV)                           

Industrials (XLI)  

Materials (XLB)                      

Real Estate (XLRE)          

Technology (XLK)                  

Utilities (XLU)

Based on the moving averages and the last daily closing price, relative to the moving averages,

the SPDR sectors’ relative strength, relative to the SPY are the following:

This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.

BITCOIN: a decisive moment

And here we are again trying to define the market destiny!

Bulls seems to gain terrain in front of the Bears but we can not say who will win until we see what happens in front of the 11000 USD resistance level.

I personally expect for a sudden acceleration of the price upwards as soon as BTC breaks that level. If so, I am pretty sure we can bet for another higher high of BITCOIN and thus for the whole Crypto Market…

By the way, the “balance” between TETHER and BITCOIN is not met so, ALTCOINS are also getting feed here in a strongly manner:

In particular, have a look to BCH , ADA, TRON, EOS and BITCOIN SV, all of them rising higher than 10% while BITCOIN 4%…

Enjoy!

@toofasteddie


Disclaimer: This is just my personal point of view, please, do your own assessment and act consequently. Neither this post nor myself is responsible of any of your profit/losses obtained as a result of this information.

Are You Paying Attention To What’s Going On In The World???

When you look around the world in the financial markets what do you see?  What I see is the punch bowl is almost empty, party goers are demanding more punch and the party promoters have no choice, but to oblige because they have been drinking the punch too.

The Federal Reserve and other leading central banks are declaring the peak in global interest rates has been reached and are readying to start the march down.

As the world economy weakens amid the U.S.-China trade war and inflation continues to undershoot the target of most policymakers, Fed Chairman Jerome Powell is set to oversee the first cut to the U.S. benchmark in a decade.

European Central Bank President Mario Draghi has also flagged action, though he may wait until September, and even Bank of Japan Governor Haruhiko Kuroda may come under pressure to join in. The People’s Bank of China has eased lending conditions but so far held fire on rates, but Australia, India, New Zealand and Russia are among those to have already injected fresh stimulus into their economies.

Source

This is a big deal.  Because I trade currencies, I’m seeing this all around the world…the big central banks of the world are cutting rates.  Now is the time to put on position type trades…trades that last months/years.  What comes to mind is buying cryptocurrencies, gold and bonds.   I will repeat, now is the time to buy cryptocurrencies, gold and bonds.  However, please don’ take my word for it…a picture is worth a 1000 words.

NOTE: the charts I’m about to show you are relative to the US Dollar.

Bitcoin

Gold

Bonds

This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.

BITCOIN: now, be careful…

…because in order to know if the bottom of the correction was IN, we have to see first BITCOIN over-passing clearly the 11000 USD level:

…and to do so, we need VOLUME!!!!

Essentially I would like to see a “balance” in the 24 Hour Volumen between TETHER and BITCOIN:

…as you can see, still there is a difference of almost 3Billion there…

The GOOD NEWS is that ALTCOINS are probably being feed also by TETHER since 87 out of the top 100 coins are in GREEN, by the way, also STEEM which is really a new NEW since we used to be stagnant while BITCOIN rises!

STEEM is 12% up from the Year’s BOTTOM, reached yesterday!

Enjoy and take care!

@toofasteddie


Disclaimer: This is just my personal point of view, please, do your own assessment and act consequently. Neither this post nor myself is responsible of any of your profit/losses obtained as a result of this information.

Bitcoin Price Drop – Prime Example that Higher Time Frames Dominate

We talked about it in my post a couple days ago, looking at the weekly chart and basically saying “who would buy that?”

There is a reason we look at larger time frames and not just the daily and hourly charts.  Looking at something like the weekly gives us a broad view of what is going on day to day and even cleans it up a bit for us.

This is why I always say “Higher Time Frames Dominate.”

You best case scenario is when the weekly, daily and even hourly chart are all indicating the same direction.

For instance, the weekly is in an uptrend and the daily just did a bullish u-turn pattern after a pullback in what is otherwise an uptrend.

That is a solid entry signal and a position you can hold for some extension, not just a quick trade.

However, when the weekly is looking ugly after reversing hard and being extended to the upside (hint: how it ended last week) then you need to be quick and nimble with your trades to the upside on the daily chart.

I sometimes forget this myself, which is what happened when I decided not to book profits at 11k on a trade I entered at 10.1K.

Had I’d looked back at the weekly the sell trigger gets pulled in no time flat.

Let’s look at the weekly chart again…

As I mentioned in the post a couple days back, price failed to break higher after ignoring the reversal candle from a few weeks ago.  The odds were price coming back to at least 9800 and meeting the 10 period average.

We have seen a bit more than that on today’s sell off, but either way odds were for price to pullback based on this longer time frame.

If you are not looking at the weekly chart to gain reference of the overall price action it is advisable to do so in my opinion.  It’s another tool in the tool belt.

To learn about how I use multiple time frame analysis and spot support and resistance points check out the ScaredyCatGuide to Investing in Cryptocurrency videos on my website.  They are free to watch!

Marijuana…There’s An ETF For That

Although the marijuana
industry has seen many ups and downs, with volatility resembling the crypto
space, just like the crypto space, it’s representing investors, particular
young investor with an opportunity to create generational wealth.

Cannabis industry
cheerleader Cowen Group, which has arguably been covering pot stocks longer
than any Wall Street investment firm, believes that the industry could hit $75
billion in global sales by 2030, which would represent a more than sixfold
increase in global sales from 2018, according to data from Arcview Market
Research and BDS Analytics.

Meanwhile, Christopher Carey at Bank of America believes that the cannabis industry has the potential to one day hit $166 billion in annual sales.

Source

But just like the crypto space, there will be many losers.  Thus, Electronic Traded Funds (ETFs) give exposure to a group of stocks, thus lowering the investment risk through diversification.  And in the marijuana space, there are three that come to mind:

ETFMG Alternative Harvest ETF (NYSEArca:MJ) is the largest fund to cover the sector.  MJ tracks the Prime Alternative Harvest Index, which tracks the entire cannabis ecosystem across both medicinal and recreational uses. MJ tracks 36 stocks with leaders like GW Pharmaceuticals (NASDAQ:GWPH) and Canopy Growth (NYSE:CGC) as top holdings.

AdvisorShares Pure Cannabis ETF (NYSEARCA:YOLO) takes on a more active approach as it’s run by portfolio manager Dan Ahrens. YOLO currently owns just 26 different marijuana stocks, including Innovative Industrial Properties (NASDAQ:IIPR), CannTrust Holdings (NASDAQ:CTST) and OrganiGram Holdings (NYSE:OGI).

Despite it being the sin ETF, probably the safest of the bunch is the AdvisorShares Vice ETF (NYSEARCA:ACT)  because it invest in alcohol, gambling, tobacco as well as cannabis.   The ETF only has 26% exposure to pot stocks.

This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.

BITCOIN: Still having doubts about the count?

well…. I confess I had a moment of “panic” yessterday when I saw BITCOIN rising up a little but the doubt was obviously temporary because what we see now is a perfect “fit” of BITCOIN and my proposed EW Count.

You can read the calls I did here (3 days ago) , here (4 days ago) and here (almost a week ago)…

The formation is clear, 3-3-5 Flat correction.

There are at least two possibilities:

  • BTC has touched support already at 9400 USD
  • BTC will touch support at least at 8800 USD which is the projected target of the HS pattern

One of my buying orders have been filled already at 9400 USD… the second is waiting for a further oversold condition at the RSI indicator.

Just one comment more…I think the correction is done but, as usual, no one can be 100% sure… so, do your own research and proper assessment before taking any decision but… in my opinion we are going UP soon!!!!!

Enjoy!

@toofasteddie


Disclaimer: This is just my personal point of view, please, do your own assessment and act consequently. Neither this post nor myself is responsible of any of your profit/losses obtained as a result of this information.


Skip to toolbar