DIXIE 50?!?(Check out my previous accurate calls on the dollar from the past year below these comments)
Has anyone else noticed the massive bearish symmetrical triangle on the 3M DXY chart?
Everyone believes the dollar will strengthen in the short term, but I think we have formed a head-and-shoulders pattern and are in for another significant leg lower!
The 1.618 continuation on this decade-long bear market rally is almost exactly at 50 on the dot, and I believe we are heading there fast!
Federalreserve
VIX to 0?!?In terms of long term allocation, I wouldn't touch equities with a ten-foot pole!
That being said, with the amount of currency being created every second, all prices will continue to rise exponentially, and the proximity of financial assets to the source of this inflation (the Federal Reserve) will continue to favor their valuations!
Would a uncontrolled rise in treasury yields lead to a sizeable correction in equities and a rising VIX? Absolutely.
Is it likely that the Federal Reserve would intervene to an even greater extent than the 2008 and 2019 Global Financial Crises? Absolutely.
Therefore, I believe the long term trend of volatility in all prices is much, much lower...
Cycle is up for treasuries and down for the yield.One picture is better than a thousand words, everything is seen on the chart. We should see weakness soon and a weekly close below 0.9 could lead to a retest of the lows at 0.36. Cycle is down till mid February. In April when the triangle ends we might see a total smoke show, possibly on the upside - looking at cycles but that's for another time...
Buy silver.
Buy gold.
Calling Tops is Virtually Impossible, but Here Goes!After nearly a decade, I believe the outright manic outperformance of tech stocks over commodities came to an end this past week!
Does this mean that the prices of shares in tech companies will fall or even crash? No. It simply means that commodities and the shares of commodity producing companies will outperform them over the coming years...
The cost of hedging inflation is about to skyrocket, make sure you are positioned accordingly...
Imperative you read what the Federal Reserve Published on EthHey all you brilliant fellow trading degenerates, have I got some news for you!
On February 5th 2021 Fabian Schär published an academic paper right on the federal reserves website that is imperative to read. This has to be one of the top academic papers I have read on ETH/DeFi yet hitting on opportunities and weaknesses that are fleshed out remarkably well. I know there is a narrative going around that the Fed and the FOMC are evil - this is wrong. Frankly I feel we are all very blessed they helped keep the entire planet from plunging into a depression at the onset of COVID. Yes it is fun to hate on bankers, but these guys are brilliant and this paper does a great job on breaking down many important concepts that I know from talking to people that are even long ETH, they do not seem to grasp, such as:
DeFi
Blockchain
Smart Contracts
Protocol Layers
Asset Tokenization, ERC-20 Tokens
Market Caps by Blockchain - Highlighting growth opportunities
Collateral (Off/On chain)
StableCoins - US Dollar pegged
The later is the most important and imperative to get a grasp on. I have encountered many brilliant people, whom when I mention stable coins and their utility they accuse me of being a "moon boy", "shrill" and "conspiracy theorist". Guys, I am citing the Federal Reserves own website. This is remarkable as the Fed itself in this paper is giving credibility to USDC & Dai and even offers an explanation of the Dapps Maker Protocol, which as many of you know is my favorite project of all!
"Whenever anyone wants to issue new Dai tokens, they first need to lock enough ETH as underlying collateral in a smart contract provided by the Maker Protocol. Since the USD/ETH exchange rate is not fixed, there is a need for over-collateralization. If the value of the underlying ETH collateral at any point falls below the minimum threshold of 150 percent of the outstanding Dai value, the smart contract will auction off the collateral to cancel the debt in Dai. "
"The most popular ones are USDT and USDC, both USD-backed stablecoins. They are both available as ERC-20 tokens on the Ethereum blockchain. DGX is an ERC-20 based stablecoin backed by gold, and WBTC is a tokenized version of Bitcoin, making Bitcoin available on the Ethereum blockchain. Off-chain collateralized tokens can mitigate exchange rate risk, as the collateral may be equivalent to the tokenized claim (e.g., USD claim, backed by real USD). However, off-chain collateralized tokens introduce counterparty risk and external dependencies. Tokens that use off-chain collateral require regular audits and precautionary measures to ensure that the underlying collateral is available at all times. This process is costly and, in many cases, not entirely transparent for the token holders."
I know many love bitcoin & eth - and I certainly do and have the majority of my network wrapped up invested in them, but the reality if you look at what consumers want in Turkey and other countries plagued with crippling inflation is not access to speculative assets, but rather access to stable coins. And you can clearly see here how the fed is understanding having access to these stable coins gives consumers through the entire planet access to real world assets. Through Synthetic tokens they can have access to real world bonds and shares. From the Fed themselves:
"Although stablecoins serve a vital role in the DeFi ecosystem, it would not do justice to the subject of tokenization to limit the discussion to these assets. There are all kinds of tokens that serve a variety of purposes, including governance tokens for decentralized autonomous organizations (DAO), tokens that allow the holder to perform specific actions in a smart contract, tokens that resemble shares or bonds, and even synthetic tokens that can track the price of any real-world asset. "
One can not separate bonds/stocks from defi and cryptocurrency anymore. Markets will be moving into this arena just like GME shares were available to trade in DeFi. Think about just Gold gentleman!!
Years ago I traded GLD & PHYS, along with physical gold. I then eventually saved up enough money to open an account with a brokerage to trade /GC CME gold futures. However, when can we as consumers trade gold and oil? Even with futures we are restricted one hour daily, and we lose access for the entire day on Saturdays. Not so with DeFi. In fact you can trade gold 24/7 365 using PAXG now. You can see the only problem as far as I can tell is that the price just seems to occasionally run up higher for no reason presenting an arbitrage opportunity I have no idea why one of you geniuses have not built a bot yet to arbitrage this yet:
Markets will be moving into this aside from just as the Fed states such as commodities, bonds and stocks. I can imagine real estate taking advantage of smart contracts, and maybe not for the settlement of the home itself, but at the very least to displace escrow accounts.
The future is bright friends and I highly recommend we all take a few moments and acquant ourselves with what the Fed is reading regarding DeFi & Eth: research.stlouisfed.org
If you enjoyed this content and my research please give it a like, and a share! And if you think there is something important that community can benefit from, please be sure to share it with us all so we can learn together!
Good fortunes to you dear trader!
Negative Rates will come!1) Inflationary pressures will continue to push yields on the 10-year treasury note higher as treasuries are sold
2) This will overwhelm the debt-burdened economy and financial system, leading to a sovereign debt/financial crisis (a credit freeze)
3) The Federal Reserve will intervene to ease lending (even more so than in the repo market right now, where they are injecting more than a trillion dollars every night!) , unleashing a torrent of currency into the financial system and the economy and ultimately pushing yields into negative territory
4) This will undermine any remaining faith in the Federal Reserve Note and all central bank fiat currencies, as money velocity, consumer price inflation and the cost of inflation hedges all soar much higher, leading to a currency crisis
5) Governments will obtain a previously unseen amount of power as the entire western savings base is inflated away and standards of living in the west fall to the levels of developing nations
TUNE INTO MY LIVE STREAM ON THURSDAY THE 11th AT 6pm TO DISCUSS FURTHER! ALL QUESTIONS AND OPINIONS WILL BE ANSWERED! :)
www.tradingview.com
Buy the Banks!Banks should be defaulting left and right!
Derivatives exposure is massive, the economy is broken and lending conditions are awful!
Therefore: BUY, BUY, BUY!
Volatility, volume and price divergence indicate share prices will continue to rise, likely because of central bank intervention!
How Can You Protect Yourself?Are you seeking to protect yourself financially in the long term while earning returns in the short term?
Tune into my live stream this Friday the 5th of February at 4pm EST to find out how you can!
POST QUESTIONS AND OPINIONS IN THE CHAT! I will answer all of them! :)
www.tradingview.com
I Hate to Say I Told You So!Marked in green are the 3 days in this correction period where I reaccumulated and added to my PHYSICAL holdings of silver!
I saw many "expert" traders and technical analysts claiming that new lows, another crash, 1700$ gold, etc. were guaranteed...
99.9% of people, including these "experts", don't understand how the prices of silver and gold are suppressed, and just how much higher they should be!
Every second silver remains at prices under ~1000 $USD is a gift from the heavens and you should be buying every dip!