The Best Trade Is Sometimes No Trade

This week we've been clarifying our multi-time-frame view of the market.

The point is there isn't much edge in being involved in this messy action, which will likely involve a high concentration of whipsaws in the coming weeks while Bitcoin builds out a base following its liquidity crunch.

Indeed, sometimes the best trade is no trade at all.

We're currently on the sidelines in elevated cash positions, waiting for a higher-conviction entry to move back into more aggressive positions.

We can either wait for Bitcoin to contract and buy the break with some level of conviction or just blindly BTFD like the El Salvador guy. I know what I'd rather be doing right now.

But, in keeping with our multi-time-frame approach, the long-term bull case still stands moving into 2022. And, for long-term spot holders, there doesn't seem much to be concerned about in this low time frame price action.

For now, we're avoiding what's likely to be a messy end to the year.

In the meantime, we're simply waiting on more data to give us a better read on when we can re-enter the market with some level of conviction. And we're closely monitoring the names showing relative strength.

We published this graphic in Tuesday's note, and we're still eyeing up the names that haven't fallen back into their respective ranges. Those are likely to be the next winners in the asset class.

The video games/metaverse theme has been the latest sector to experience a parabolic move, showing some pretty impressive relative strength prior to the crash last week. While most aren't immediately actionable, keep a close eye on these names as well as Roblox in the legacy markets.

Further outperformance out of this group would be incredibly impressive.