I hope everyone enjoyed the extended weekend because now it’s back to work, you slackers! It’s going to be a turbulent week, so let’s get to it. Over the past week crypto currencies have been enjoying a continued stream of bids (not bits) which has of course benefitted our ongoing Bitcoin campaign.
Like equities the crypto sector has been enjoying a steady stream of buying interest over the past week. Bitcoin HODLers in particular may begin to relax a little again after having been on a roller coaster of losses and frustrations since the beginning of this year. The $10k was won only 2 1/2 months ago after which BTC doubled to almost $20k a mere two weeks later. Not taking profits at this point IMNSHO was a crime against humanity and the ensuing extermination event was well deserved.
The swings of the past week serve as yet another healthy reminder that all markets work on a zero sum basis. After all Martin Scorsese called it the ‘Wolves of Wall Street’ for a reason – not the bears or the bulls of Wall Street. However the underpinnings of what may serve as sensationalistic backdrops for summer blockbusters are what we as traders need to deal with in real life on a recurring basis. And it is a reality (mostly) devoid of hookers, drugs, yachts, lambs, and entertainment slush accounts. Trading should be boring because as soon as things start to get exciting significant losses become a growing possibility.
I’m a bit pressed for time this morning due to social commitments, so let’s get right to it. Equities produced a pretty flat session yesterday with barely any signal on the Zero’s market participation signal. Now this is not unusual and we’ve seen days like this on a regular basis especially after snap backs to the upside. Early institutional dip buyers have done their part at this point and are now fishing for hobby bears they can rip to pieces in the following sessions.