BTC - Indicators- the SEC CFTC G20 - Regulations & Opportunity
Updated
Talk about a triple witching Friday! Stocks Down, Metals & Oil Down, and another Down day for Cryptos. So what do we do, and how do we handle days and weeks like what we are going through?
Quite simple, I Look for bargains. Yesterday I posted a list of alt coins I was looking to buy though not quite yet. I also spent the better part of last night going over stocks that I want to buy making that list for next week.
Indicators:
I get a lot of comments on why I do not use indicators like the MA' or MACD'. Quite simply indicators lag the market over any longer period of time. They tell you where we have been and NOT where we are going. Above is a chart of BTC', and as you can see if you sold BTC' when the 50 day EMA crossed the 100 day MA' you almost sold the bottom twice, right before the rally. "Bravo"!! and there are still those that sell this signal. Below I use the standard MA's on the same chart and you can see you did not sell at the bottom twice but three times. Show me the cross on the daily and I'm a buyer! Secondly the MACD' is about the most useless tool, in my opinion, for longer term charts. If your day or scalp trading that is different, but for longer term charts totally useless. Look below at the MACD and tell me what insight you can get from that chart? The PPO' is a better indicator but only if used correctly. And quite frankly most do not use correctly. There is a use for them, but predicting future price action is not one of them. The RSI I do use often and interesting enough we touched the 30 level. This is one reason I am a buyer here. If you bought since 2015 every time BTC' hit the 30 on the RSI' you made money going forward. If you bought when it bounced off the 40 you made money all but once (currently). In addition many longer term robo traders trade the RSI' signal along with other MA's and indicators, but not how most use them.
SEC - CFTC
There is a bunch of hype about the SEC CFTC and G20 meetings coming up. First and foremost there is a huge misunderstanding of what is happening here. This is not about trading Bitcoin' or Ethereum' or a basket of other coins. This is about ICO's and regulations. The U.S along with other countries have already moved to regulate BTC' as best they can, which is at the point of entry and exit through exchanges where people turn bitcoin into cash, with the KYC' rules. So what is all the hype then? Simple, new ICO's and regulation of securities. Bitcoin is not a security because it already exists. Your simply trading a "commodity" (I won't go into the currency/commodity issue here due to space) in the form of a digital asset. So what is the difference?
The orange test.
If I own 100 acres of orange groves, and I sell oranges to you, this is simply me selling a commodity/product. The SEC & CFTC do not care how much I sell the oranges to you for, so there is no need to regulate. Simple free market economy.
If I own 100 acres of orange groves and I sell you a stake in my orange grove with the intent that you will get profits from the oranges, I'm selling an investment or security. Securities are regulated to insure the public is not duped by unscrupulous schemes. This is exactly what the SEC' CFTC' and other countries are looking to regulate. ICO's that make promises on future gains. Like I said months ago. This is good for the space.
This SEC' and CFTC' will not consider BTC' a security because its just like oranges, I'm selling something I own.
The G20
Simply about regulating ICO's, KYC' and how to crack down on money laundering. End of Story!
Bottom Line: The current correction provides opportunity to buy quality coins. I have my list and am going over the charts all day and tomorrow. I'm in no rush. Long term these are simply buying opportunities and long term these markets are headed up. If not why are you here? I believe after the SEC CFTC meeting and the G20 summit we move higher as large asset managers gain clarity into how regulators view BTC'.
Quite simple, I Look for bargains. Yesterday I posted a list of alt coins I was looking to buy though not quite yet. I also spent the better part of last night going over stocks that I want to buy making that list for next week.
Indicators:
I get a lot of comments on why I do not use indicators like the MA' or MACD'. Quite simply indicators lag the market over any longer period of time. They tell you where we have been and NOT where we are going. Above is a chart of BTC', and as you can see if you sold BTC' when the 50 day EMA crossed the 100 day MA' you almost sold the bottom twice, right before the rally. "Bravo"!! and there are still those that sell this signal. Below I use the standard MA's on the same chart and you can see you did not sell at the bottom twice but three times. Show me the cross on the daily and I'm a buyer! Secondly the MACD' is about the most useless tool, in my opinion, for longer term charts. If your day or scalp trading that is different, but for longer term charts totally useless. Look below at the MACD and tell me what insight you can get from that chart? The PPO' is a better indicator but only if used correctly. And quite frankly most do not use correctly. There is a use for them, but predicting future price action is not one of them. The RSI I do use often and interesting enough we touched the 30 level. This is one reason I am a buyer here. If you bought since 2015 every time BTC' hit the 30 on the RSI' you made money going forward. If you bought when it bounced off the 40 you made money all but once (currently). In addition many longer term robo traders trade the RSI' signal along with other MA's and indicators, but not how most use them.
SEC - CFTC
There is a bunch of hype about the SEC CFTC and G20 meetings coming up. First and foremost there is a huge misunderstanding of what is happening here. This is not about trading Bitcoin' or Ethereum' or a basket of other coins. This is about ICO's and regulations. The U.S along with other countries have already moved to regulate BTC' as best they can, which is at the point of entry and exit through exchanges where people turn bitcoin into cash, with the KYC' rules. So what is all the hype then? Simple, new ICO's and regulation of securities. Bitcoin is not a security because it already exists. Your simply trading a "commodity" (I won't go into the currency/commodity issue here due to space) in the form of a digital asset. So what is the difference?
The orange test.
If I own 100 acres of orange groves, and I sell oranges to you, this is simply me selling a commodity/product. The SEC & CFTC do not care how much I sell the oranges to you for, so there is no need to regulate. Simple free market economy.
If I own 100 acres of orange groves and I sell you a stake in my orange grove with the intent that you will get profits from the oranges, I'm selling an investment or security. Securities are regulated to insure the public is not duped by unscrupulous schemes. This is exactly what the SEC' CFTC' and other countries are looking to regulate. ICO's that make promises on future gains. Like I said months ago. This is good for the space.
This SEC' and CFTC' will not consider BTC' a security because its just like oranges, I'm selling something I own.
The G20
Simply about regulating ICO's, KYC' and how to crack down on money laundering. End of Story!
Bottom Line: The current correction provides opportunity to buy quality coins. I have my list and am going over the charts all day and tomorrow. I'm in no rush. Long term these are simply buying opportunities and long term these markets are headed up. If not why are you here? I believe after the SEC CFTC meeting and the G20 summit we move higher as large asset managers gain clarity into how regulators view BTC'.
Note
"In the short term, the market is a popularity contest. In the long term, the market is a weighing machine." Warren Buffet.Note
Note
For a complete breakdown of the SEC-CFTC meeting and what to expect seekingcryptos.com/2018/02/04/expect-sec-cftc-head-senate-testify-concerning-bitcoin-cryptocurrencies-tuesday-february-6th/
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