Hedge
Where we sunk in quicksand on 12/4, we found bedrock on 12/21.Granted, there was nearly a 3x difference in the amount of volume between these candles' volume ($6.5M vs $2.5M), the price fluctuation is an order of magnitude less volatile. What this suggests to me is that the market has determined this sell off was either premature or dramatically oversold.
Zooming out, it appears XRP has just been primed for a strong rally, back to around $1.25-$1.32 by Friday. I'm skeptical that we will break into/above the $1.38-$1.44 region on this leg up. It seems far more likely that we'll reject off the 10 year fib channel's .382 range. We will likely remain rangebound between $0.90-$0.98 & $1.32 going into the New Year.
There's a strong case to be made that we should see continuation to the upside, after the end of Fiscal year 2022, as wash traders will no longer have an incentive to suppress prices, to exploit tax loopholes regarding wash trading, which rules still do not apply to the crypto industry at large. This is both why I am skeptical that we will break bullish (above $1.38) before the EoY, but also why I am skeptical that crypto's current bull cycle will be seen as having ended in 2021.
Like many reputable investors/long term speculators I'm of the volition that the crypto bull cycle will see renewed fervor in Q1 2022, which will likely extend deep into Q3 before peak euphoria becomes blatantly visible. There's entirely too many variables which are providing tailwinds for the market to see continued growth, even in the face of a potential FED tightening. This is largely due to the inevitable flow of funds from (propped up) markets, into main street, which will drive wage growth, price inflation & pro-crypto/hard asset sentiment among the general population.
This is not a time to be short sighted and fearful, but a time to be forward thinking & pro-active in preserving what wealth we have from the ever-more-apparent inflationary pressures which are bursting from every orifice of economies around the world.
Bullish technicals and Fundamentals Being In an inflationary environment a screen energy driven narrative Platinum is important to help create hydrogen/renewables battery technology and take over the high prices of palladium.. Over here we have a nice bonus structure with Falling Broadening wedge or a megaphone pattern (whichever you prefer).. Plus a great dividend Stuck with a low PE ratio. In My opinion it doesn’t get much better than this.
F/TSLA Beta Hedge , Just took a small starter in this trade .I think that there is a good possibility that , with Farley at the helm at Ford , which has also recently broken out of a 20 year base and just on Friday ( Dec 10th, 2021) broke out of a smaller base too, that we will likely begin to see F outperform TSLA . I am not saying that TSLA is going to capitulate or anything like that , but I am betting that Ford is going to become a pretty notable challenger for EV dominance and give TSLA a run for its leader status in the industry .
I think that TSLA is going to have some difficulties keeping the same levels of growth up we have seen in its former years and whereas Ford is just getting started in the EV sector really and that is currently not priced in well to it's share price. So, I personally believe that the market is very inefficient in pricing Fords true value but that it eventually will correct this inefficiency .
I could be wrong but even if I am , this trade probably has a pretty low probability of loss overall .
I like the market caps vs share price of the two .
TSLA - $ 966.55 per share with a cap of 979 billion .
F - $ 20.68 per share with a cap of 89 billion .
Ford is a sleeping giant here . Also , I really like Farley too and that's a big part of why I have high hopes for Fords future .
Nothing against Musk either :) This is about making money though and I think it's a trade that has potential for profit greater than loss .
If this goes the way I am hoping I will add when it shows us some more strength in the highlighted area on the chart .
RIOT/BTCUSD Beta Hedge In regards to my last posting, which explains this idea and the logic grounding it , I just wanted to publish this spread chart for RIOT/BTCUSD as I think it's important .
The idea is that a short on bitcoin can be hedged by buying an equivalent dollar amount of RIOT , which acts as a beta hedge here .
Please give the initial publication titled "BTCUSD How to reduce risk while shorting using beta hedging" a read if you have not and are interested in this idea. It is much more detailed and it is linked . This is meant to supplement it only . I have attached the prior posting mentioned to this publication .
$LODE sniper edition #5*This is not financial advice, so trade at your own risks*
*My team digs deep and finds stocks that are expected to perform well based off multiple confluences*
*Experienced traders understand the uphill battle in timing the market, so instead my team focuses mainly on risk management*
Recap: My team entered $LODE on November 8, 2921 at $2.25 per share and plan to take profit at $3.00
My team averaged down on our position today at $1.60 per share bringing our share average down to $1.92.
!!This is a high-risk trade. Proceed with caution!!
OUR FIRST ENTRY: $2.25
OUR 2ND ENTRY: $1.60
TAKE PROFIT 1: $3.00
TAKE PROFIT 2: $4.50
If you would like to see more, please like and follow us @SimplyShowMeTheMoney
GBP CAD Long idea GBPCAD has been in a steady uptrend for about a month now. In that time the price has respected the upwards trend and hasn't broken through it yet. On the 4hr chart, the Stoch-RSI indicators have just crossed in oversold territories (21), it looks like the price will increase. A scenario that might play out is that the price will fall down a little bit towards the trend line before its continuation forward. The one issue with this trade is that the price has failed to break through the 1.70 regions with any conviction, this indicates caution to me as another attempt is likely but failure to break past the resistance zone could lead to a drop in price towards the 1.684 level.
EURUSDIt has retraced from a strong TL and a Fib (1) making higher highs on Hourly time frame. The daily closing was bullish. However there might be some short term pull back as there is some bearish divergence witnessed.
As always i am sharing you the most safest entry and exit. Trade with discipline..
CHCI Easy 20% Gain and Hedge Against InflationCompany Profile
Sector: Real Estate
Industry: Real Estate Management & Development
Company Location: Reston, VA
Comstock Holding Companies, Inc. develops, operates, and manages properties in the greater Washington, D.C. metropolitan area. The company operates through two segments, Asset Management and Real Estate Services. The Asset Management segment provides management services to a range of real estate owners and businesses that include various commercial real estate uses, including apartments, hotels, office buildings, commercial garages, leased lands, retail stores, mixed-use developments, and urban transit-oriented developments. The Real Estate Services segment provides a range of real estate services in the areas of strategic corporate planning, capital markets, brokerage services, and environmental and design-based services in the Mid-Atlantic Region. Its environmental services group offers consulting and engineering services, environmental studies, remediation services and site-specific solutions for projects. The company was formerly known as Comstock Homebuilding Companies, Inc. and changed its name to Comstock Holding Companies, Inc. in June 2012. Comstock Holding Companies, Inc. was founded in 1985 and is headquartered in Reston, Virginia.
First Target: $5.42
Second Target: $5.67
Third Target: $6.03
Fourth Target: $6.48
Stop Loss: $5.13
USDJPY LONG TO 117After consolidating for the past month and a half, USDJPY has presented a bullish structure which looks like it is about to break out to the upside now and target $117. We have completed a correctional phase inside its current wedge. Possible we might see one more leg down as part of a micro correction (Wave E) before price shoots up again.
I will be catching this move on behalf of myself and my Account Management investors.
Physical Gold Ready to Break Out! With inflation no longer appearing to be "transitory" as the FED would like everyone to believe, now is a good time to consider diversifying your portfolio with some physical gold. Yes, physical gold! You might ask, why invest in gold? It has hardly performed over the past 10 years. Well that time is now as we are right on the precipice of the FEDs transitory narrative undoubtedly falling apart. Physical gold such as a gold eagle 1 oz coin acts as a physical store of wealth for your money and is considered legal tender in many states. It's a great diversifier like bitcoin and acts as a hedge against inflation. At the current moment, the charts look exceptionally bullish for the long term. We need to see sustained movement above $1,835 to confirm, which would give us the potential of the price of gold to easily break above the most recent high of around $2,000 and end 10 years of sideways performance. At this point we would be in a price exploration phase and the heights at which the price could reach is unlimited unless proven otherwise by a confirmed change in trend.
Gold cannot simply be created digitally or out of thin air and must be extracted from the earth which requires immense amounts of energy, expertise, heavy equipment, cash and most importantly, time, to extract physical ore from the ground to be refined. There is also a limited supply of gold within the earth that can be mined economically/possibly. This is why gold has been the best performing asset in the past 5,000 years as it is the basis of the supply and demand model and has outlived many of the failed currencies of past civilizations. Once demand peaks during inflationary times when people are looking for the exit into safety, price is sure to explode with growth.
When it comes to investing in gold, it is recommended by many wealth advisors to have at a minimum of 5% of your total wealth in physical gold with a max allocation of 20%. While one of the downsides of physical gold is storing the gold there are solutions to safely house your gold, which can be kept at home in a safe or within a vault at a bank. Another play would be to purchase gold miner stocks like Barrick Gold Corporation. With the increased price of gold, these miners profits would explode, resulting in huge price increases for the extremely undervalued gold miner stocks. The added benefit of high dividends is also a huge plus when investing in miners as you can use this to generate an income while still playing the physical gold “play.”
In short, if you are looking for ways to diversify and already have an interest in assets such as bitcoin as a hedge against the impending inflation then definitely consider visiting a local jeweler and coin dealer and speaking with an expert that can guide you in your first gold purchase.
DXY H4 - Long SetupDXY H4
Expecting a larger correction here, we haven't exhausted from last weeks data point antics. Really want to pullback towards that 93.800 price (range box retest). From here, we know we will have seen healthy corrections, which removes the doubt of expecting them further down the line if we are to jump into USD bull trades.
Good Time To Hedge With Vix?It could be a good time to hedge current holdings with ITM VIX calls at least 80 days out.
Historically these past two years when RSI levels on vix are this low we tend to see some sort of spike within 30-50 days.
However, do note, past "normal" market years (pre-2020) have sometimes not had a VIX spike during the end of Q4 and early Q1 of the following year.
Correlated assets, Great impact. Here ladies and gentleman we have the US dollar and GLD futures.
In DXY we are currently in a nice little wedge and already breaking to the downside.
Below are 2 highlighted supports that I'm seeing that could potentially be reversal points since the dollar has been in the upside since May.
We all know what this means for equities:)
In gold we are looking at a bearish descending triangle with a little bit more push to the upside of about 3% or so before resuming to the downside.
Personally I think for the dollar to reverse to support 2 that gold would go higher and push out to the upside of the triangle.
time will tell,
That's all folks
The beginning has already startedThis isn't financial advice because i'm not a licensed financial advisor.
I think we can all feel the fishiness thats been in the air like a sewage spill into the ocean.
I'm confident that we've seen the top of 4945.50 and for now theres no turning back.
Nothing is transitory in the world that we have the pleasure of inhabiting in the era that we are at.
US CPI is still charging forward, shortages still a thing, so many people quit their jobs in the month of August and there is no reporting on it because everyone is focused on what been gained.. which is far below estimates.
World wide economy is in shambles, China is making it seem like they have everything contained, The US is making it seem like everything is contained when in actuality nothing is contained and it's all spewing out.
Take this post with a bearish take if you will because I think things through with logic and I don't know how anyone can look at conditions as they are (world wide) with logic and think that things will get better.
Maybe we rally into ATH and I'm completely wrong. In a world of "investing" theres no one thats 100% right every time. In reality to be a good "investor" it's knowing how to cut your losses and being right at least 50% of the time and letting your gainers run for the hills.
The gamma skew in the call VS puts is exactly where it needs to be to see a major downside, when everything is going up and theres nothing to support that but an endless piggybank, sooner or later the pretending ends and theres a mass of disappointment.
Monthly RSI just popped back above 75, weekly RSI is ~55 range so there is massive potential for further downside, the question in my mind is what will be the "narrative" to get the pyramid to crumble.
Remember, the hedgehog knows one big thing and the fox knows many different things.
Are you a fox or a hedgehog?
That's all folks
CXO/BTC HedgeHedging against BTC as it is approaching a resistance. We can LADDER ONLY entries here and at lower supports. This is not an overnight play. This will take several trades to accumulate and achieve. Patience will be rewarded in this. Look in group for BTC plan of action as well. Enjoy my friends