Talk about a crushing day! Stock market down, crypto market down! These times are trying and un-nerving to many that are new to investing and trading, and understandably. These are the times that separate the weak from the strong. If you are nervous and can not hold through these types of corrections in a speculative market then bottom line you put too much money in the market! You have to be able to hold tight through down markets and look for opportunity when most feel its the end.
I am not going to candy coat it. We have pulled back farther than I thought we would. One item of note on the chart is the huge volume spike. Now normally I do not rely on volume as an indicator but when you see a spike like this or like the spike we saw close to the stock market close today, you have to wonder if this was not a large investor pushing through margins to create the sellers they need to buy up at a discount. This has been happening for as long as markets have existed. Large investors use their buying or selling power to move the market the direction they want for their benefit, especially if they can do this around some FUD news. See below for a comment from the written testimony of J. Christopher Giancarlo, Chairman of the CFTC. Hardly the doom and gloom report, its quite the opposite. Odd this spike happen shortly after the report was released. But lets look at the charts.
We hit an odd 0.786 retracement level that has me even wondering if we go lower. Maybe we do, but selling here is as risky as buying at 18k in my opinion. We can surely pullback into the 4th wave of the recent midterm cycle. A break of 6427 tonight MAY put this into play sooner rather than later. If you have been following for more than a month, we are still sitting on a nice cash pile, and cash is king in corrections. Now I am not saying we will hit 5000, but the odds have increased that we may. The next Fibb levels are between 4431 and 4688. But lets first see if 6247 holds and see how the market reacts to the hearing tomorrow before jumping to conclusions as markets can turn on a dime. I would not be surprised on the other hand to see a rebound over night especially with the testimonies released today.
Please stop with the FUD about China banning bitcoin. Its simply regulating unscrupulous ICO's, exchanges, and insuring money is not being illegally transferred out of country. This is simply scare tactics. I was actually reading the Chinese Securities Regulatory Commissions (CSRC) regulations today to dig deeper and get the facts.
Unless you are in a 100% cash your portfolio is down over the past few weeks period, so please spare me the I called the paper short with no skin in the game comments. I can not guarantee I will always be right, and I have never claimed to time the top or bottom of a market, but one thing I can guarantee you is that I have skin in the game, and my trades are real, unlike many "paper traders". I'm right here with you and I am not even thinking of selling.
I'm taking a nap, getting up in a few hours, putting on my big boy pants, making some coffee and doing some research. I will be going over the testimonies of both the CFTC and SEC chairman before the hearing! I'm looking for an edge. I am also going to finish researching the CSRC regulations and see if I can garner any factual information that provides an edge as well and I will provide an update on my findings. Not misquotes or statements out of context, but factual research.
Bottom Line: If you want to make money like the Buffets and Rothschilds, you have to think like them! You have to dig where nobody else is digging. You have to have nerves of steel and willing to buy when everyone else is scared and selling. Bottom line you have to act contrarian to the herd. That's where the big money is made in markets. Not being with the status quo!
"The time to buy is when there's blood in the streets, even if the blood is your own" Baron Rothschild
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Legal Disclaimer: This is only my opinion, make of it what you wish. What does this mean? It means it's not advice nor recommendation to either buy or sell anything! It's only meant for use as informative or entertainment purposes.**
Is this you?
https://www.tradingview.com/chart/BTCUSD/LCDPxmdo-BTC-Skin-in-the-Game-with-the-SEC-and-CFTC-on-Deck/
I'm with you, @vonbuelo. Agree with everything you've said. Pretty tough times but I am not selling. Once I see a sign of a reverse trend I may buy a bit more, although I am running out of cash.