This is the video recording of our June 4, 2021 All Star Charts Crypto Weekly Charting Session.
Heroes And Zeros
There is now more than enough evidence to say with certainty that digital currencies are here to stay.
In the last few quarters, the market has spoken. The size of some of these coins is mind-blowing.
What was once peanuts, the total market cap of the asset class achieved the $2T milestone at its peak last month.
There are literally several thousands of options or individual coins/tokens to express our opinions, and the list is growing every day.
So the number of options and ease of access is only accelerating the interest and activity in the space. We don’t see this changing. [Read more…]
The Tactical Trend And How We’re Trading It
We can highlight as many charts and Altcoins as we like to demonstrate where things could be leaning, but with most things in markets, less is often more.
In this case, it’s straightforward.
If 60% of the asset class, namely Bitcoin and Ethereum, can breakout from their current consolidations, the short-term trend is likely up, and it’d be wise to put some risk back onto the table.
Alternatively, if they cannot, and these patterns resolve lower – we should anticipate messier action for longer.
Polkadot’s Canary In The Coal Mine
To gauge any market trend, we must look under the surface at the components themselves.
This is true for Stocks, Commodities, Bonds, and even Cryptocurrencies. It’s Universal.
For instance, when discussing Smart Contract Platforms like Polkadot or Ethereum, we evaluate whether the bulls are diving deep into the projects of the other offerings in the ecosystem.
This is Technical Analysis 101, and it goes back to Charles Dow in the 1800s looking for confirmation of the major averages.
Over 130 years later, in entirely new assets, the same principles govern markets.
In this case, we’re looking at Polkadot’s first project release and Canary Network, Kusama $KSM.
Similar to how Litecoin is seen as the experimental little brother to Bitcoin, any new additions to be implemented on Polkadot go through Kusama first.
For this reason, the two trade very much in tandem.
So how about this divergence?
What Monthly Candles Are Telling Crypto Investors
Shifts are taking place for the first time in over a year.
Bitcoin just printed its second consecutive negative monthly candle, which hasn’t happened since the Covid crash. Meanwhile, Ethereum was down on the month for the first time since September of last year.
Riding along in the Cryptocurrency space has been the ultimate momentum strategy. As a result, gains have far exceeded any risk asset by a country-mile.
But the same applies to the downside.
In the case where volatility’s ramped up as it has, there’s nothing wrong at all with sitting on heavy cash positions until a more definitive trend forms. If the history of these digital assets have taught us anything, it’s that knowing when NOT to be in the trade puts us in an incredibly advantageous position.
Just take a look at Ethereum’s monthly candle:
Look For Risers In Crypto’s Mess
It’s messy out there.
Breakouts are failing all over the place.
In recent weeks, it’s been a tough time for any type of trend following strategy. That’s because most are not trending, but rather in ranges.
When this sort of action unfolds as it has done, we play an exercise.
That is, we zoom out.
In all this gut-wrenching volatility, let’s not forget the extraordinary gains this asset class has achieved over the last few years are astonishing, even after a violent 50% crash.
Consolidation is painful, but it’s necessary.
Let’s jump into it with a quick look at how the top digital assets performed yesterday: [Read more…]
[Premium India] Monthly Conference Call Video Recording May 2021
This is the recording from the live May 2021 Conference Call for Members of the Allstarcharts India! Before getting into individual stock ideas in India, we’re going to first start with the global macro perspective. Once we identify the direction of the underlying trends from a structural and broader view, then we’ll dive into the NIFTY Indexes on both longer-term and short-term timeframe. We want to look at Large-caps, Small-caps and everything in between before getting into the Sector and Industries themselves like Energy, Banks and Pharma.
This is when we finally break things down to the individual stock scenario with identified risk vs reward opportunities. That is what this is all about – aligning ourselves in the direction of the underlying trend while at the same time identifying where the risk is to make sure the potential reward is skewed exponentially in our favor. You will find that throughout this process we discuss Momentum, Fibonacci and Relative Strength. I encourage you to check out the Education Section so you know exactly where I’m coming from when you hear me mention these tools.
Here is the video in full:
[Video] “Banks Are Walking Dead” | My Conversation w/ Howard Lindzon
It’s always nice to sit down and talk about what the future is going to look like.
Currently, the largest hotel chain in the world doesn’t own any hotels (Airbnb). The largest taxi cab company in the world doesn’t own any taxi cabs (Uber).
Will the largest bank in the world not own any banks? Howard Lindzon says yes, “Banks aren’t dead, they’re walking dead”.
This was fun. I learned a lot.
It gives me more reason to keep an eye on opportunities in the Crypto Markets.
I’m a chart guy, as you’re all well aware. Price drives all of my decision making. But if you’re interested in what’s happening behind the scenes (I am), then this one is for you! [Read more…]