If you think equities are looking droopy then feast your eyes on the train wreck that’s unfolding across crypto right now. Bitcoin dropped below $35k and Ether crashed 40% – the same guys who were cruising to buy new lambos last week are running in circles with their hair on fire. Cue the usual muppets smugly telling us they ‘were right all along’. Just like in 2019 when BTC dropped from $14k to $6k.
Great time to start buying again I say.
And I suspect Baron Rothschild would agree. Plus the coins we are trading this week are holding up just fine:
MANA
BCH
DOGE
XRP
ETC
All look not just “not too bad” but legitimately bloody excellent. Which is weird because they all suck as coins.
BITCOIN is taking it in the ass, but we aren’t holding that. This is because investors are taking their excellent BTC investments and FOMO’ing into egregious shitcoins like XRP.
Bitcoin looks like a capitulation bottom to me, but I was wrong about that before, like I’ll be wrong about many things. This is the first major reset of this bull market. 2017 bull market had 6 OF THEM! If you don’t like the way this feels, you shouldn’t be playing.
This WILL happen again, probably several times before it’s all over. I’m seeing several of the perma-bull bitcoiners start to hedge their bets, which is usually a sign the bottom is very close.
The corrections in 2017 (in BTC) were 37.5%, 34.6%, 41.4%, 39.9% and 30.2%. This right here is about right, nothing to see here, nothing unusual.
So let’s talk equities – the place where bears’ dreams to go die.
I’m looking at the SPY and it’s starting to look like me when I was 8 year old. Up to no good and a stupid grin with gaps all over.
Yes it’s absolutely looking droopy but thus far nothing dramatic has happened yet.
And that VIX sure is looking sc-aaaryyy at this point. Incidentally – who was it again that predicted we would be seeing a much higher VIX very soon just a few weeks ago?
Let me think…. oh right – it was ME!!!
Meanwhile monsters of finance are still inside their EM range after kissing the upper expected move threshold on Monday. Funny how that happens, innit?
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Before I forget it: I moved my stop on gold up to the 2.8 mark. It’s starting to look interesting?
Steady as she goes – that’s the way I like my charts.