Trade Updates
Traders,
TBH, I am batting oh fer three in my short endeavors thus far. Not cool. Quite frankly, I am pretty annoyed. News came out yesterday that the SEC would be opening a brief window for BTC ETF evaluation. This was just enough of a news item that I knew it would liquidate quite a few shorts, including myself. And that it did. Will any of these ETFs actually be approved today? Doubtful. Probably not until Jan 10th at the earliest. However, the market movers will do their thing and use this news to shake out shorts.
I was knocked out of both my BTC and SOL short. But I went right back in. Hopefully, I have been able to set most of my emotions aside and analyze the charts logically. Let me show you what I am seeing and explain my rationale here:
Ok. So, on the BTC chart above, several things that caused me to re-enter:
#1 - No confirmation above that RED TL until tomorrow’s close. As of now, I see this as a news-driven manipulative pump which could be followed by a big dump if those ETF approvals are delayed once again. I’m obviously betting on the latter with my short entry here.
#2 - I do NOT like liquidating any of my short positions when the daily RSI is still in overbought territory. That remains the case with BTC. It just never dropped below 70. Had it done that, I would have not re-entered short here.
#3 - In addition to reaching our inverse H&S target, you all know I have been predicting a $37-40k price target by the close of the year. Well, we have that now. Though, I must admit, I never thought it would come like this and that is why there is some validity to the HODLer arguments to buy and hold. This is also why I have much of my crypto being held and not used for trading.
But, if you’re like me, you like this game of trading. Trading is fun. And I like playing the game of trades. It always lures me back. Even when I am annoyed at losing a few.
Now onto Solana:
Solana has also reached its inverse H&S target. It also is following this news-driven pump along with FTX related items. And it also never dropped below over-bought territory on the daily RSI.
I do not think it unreasonable for me to expect a drop here on both BTC and Solana soon.
Obvi this is all for your entertainment. Not fin advice.
Best,
Stewdamus
