Relentless

I decided to do another update this week for ya’ll – the markets have gone according to plan, and both the expected correction, (and subsequent rebound) happened VERY quickly, bolstered by the FED late last week.

Looking at my bigger picture total cap chart here, the major calls I’ve made at inflection points in the newsletters have been stellar. Trading is never easy but it certainly helps to have this level of conviction:

In my last update I emphasized the risk of a correction, and emphasized “RISK TO THE DOWNSIDE” and recommended raising cash in my TLDR summary. Within 48 hours we dropped 110 points on the S&P, and 8k on the price of Bitcoin. I outlined buy levels on ETH (around 4k), and BTC around 113k, both of those hit almost perfectly, and rallied fast out of the Jerome Powell FED speech. However they faded back over the weekend and have now settled in what I think are good R/R buy zones (at least for the short term).

While I called the correction extremely precisely, it was a pretty shallow dip relative to the potential I saw. In short, a bigger correction is still coming… but I think it will have to wait for mid September. For now, odds favor a few squiggles higher across the risk spectrum.

Looking at BTC I am comfortable buying in this zone, and down to the 105k~ area. I think we can setup another push higher. That said, this is not a slam dunk setup from a TA perspective, so some chop should be expected. Bias is BULL with a potential target of 127k.. one thing at a time.

ETH has responded extremely well. I emphasized 4k as a buy zone in the last letter. We hit around $4050 then put in a staggering 15% move on the FED news, tagging once again the prior ATH area. I am looking for $5500~ as a next target, although I think ETH is generally losing steam here.

S&P 500… I think we can put in another marginal higher high here, the 6520-6550~ range looks like a good target.

Nasdaq darling TSLA looks coiled for a move higher here…

Precious metals actually BULLISH on the short term here. I’ve been waiting to short the sector bigger picture, but for right now $35xx gold and $40 Silver look likely.

KWEB (China Tech) from the last newsletter is up around 5%, and I believe more capital will rotate into this sector. Might be a good spot to shop for individual names that are hype prone (Think AI/Robotics/Chip makers).

I emphasized buying a dip on Sol Strategies (TSX: HODL) in a previous newsletter… they did a stock split but the price zone is the same, and I am buying here.

TLDR;

1. Bigger picture market is running on fumes, but a few squiggles higher in the short term are likely.

2. Chinese equity is an opportunity for an aggressive trade (KWEB, BABA)

3. BTC can continue higher with strong support down to 105k. Targeting 127k

Trades:

Added SOL Strategies (TSX: HODL) – Canadian Listed microcap