Trading Follow Up #3 - Cryptos
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Hello Friend,
Since our zoom meeting a couple of weeks ago (it's been that long already?) I've been trying to shed light on a number of things to respond to and follow up on themes that were discussed or brought up so that we can all see things through the same lens. There's a lot of information to convey so let's break it up into segments. After this one, my next update will be a straight Q & A in response to various questions I've received via email but let's do this first. Time is fleeting. Let's talk about cryptocurrencies. |
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Bitcoin
About a week ago we caught a nice dip and added to the BTC holdings. We entered twice with 10 BTC on each position. This raises our total BTC to 45 right now. The average entry price of all 4 positions is $47,078. Current price at this moment Sunday night Feb. 21 is $56,569. |
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Ethereum
We originally came in with 2000 ETH but had to dump that position with a swift and steep drop on Feb. 15th. We got back in with 1000 ETH at $1761 as it was coming back up . This was a good entry. That position was not at all affected by this weekends steep 'stop hunt' and is sitting nicely right now. There was another 'stop hunt' in both ETH and BTC over the weekend but we used it to our advantage and took the 'VIP entrance' with a new position of 100 ETH as you see below. Total ETH holdings now stand at 1100. |
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Comparing the Two
Below is a weekly chart showing both ETH and BTC side by side. Look at the charts to see how similar they are. ETH (left) seems to be following in the footsteps of BTC in terms of the chart pattern. The BTC chart shows the previous all time high (ATH) on the left and this is a weekly chart so you see the numbers, which are the number of weeks (4) it took BTC to double again from the previous ATH. Is ETH following the same pattern? If so, it could also double again in a matter of a few weeks. It is currently around $1900. If we have 1100 ETH gaining a total of $1900 or thereabouts (a doubling in price again), you can do the math to see the potential value of our ETH position in the near term. |
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Last week
So last week XAUUSD (Gold) hit a new low and it taking its sweet time to do anything. Many financial analysts are expecting a serious correction in the stock markets and that could have an impact on gold if or when that happens. We have a short in the Dow for just such an event. We took profits out of wheat, sugar and several Fx pairs. We've taken some profits out of oil here and there and just last week I entered with a position in Brent crude with a strong looking uptrend only to have the news come out that inventories were far above expectations indicating weak demand and the price dropped on us. It'll be back up again next week.
We are making progress on our goals but so far it's requiring some serious patience. Again, simply breaking even on the gold positions would give us enough fresh equity (recovering the negative floating positions) to reach our goals for distribution (and it WILL happen!). Failing that the alternative is to make it up in other areas. The ETH scenario and our strong BTC positions are strong possibilities to help us.
In the meantime, I'm day trading short term positions to get in, make some profits and get out and chip away at it on a daily basis.
Please keep our account activity in your prayers that we will be led to make the best decisions at the right times so that the resulting prosperity can be sprinkled throughout God's kingdom for HIS glory!
Amen?
Mark |
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