This newsletter is sponsored by PHEMEX, the world's best crypto exchange for both spot and leverage. Sign up with the link above and get some free Bitcoin. I really encourage you to check them out.IF YOU HAVE ANY ISSUE WITH THE NEWSLETTER OR YOUR SUBSCRIPTION, PLEASE CONTACT: PREMIUMSUPPORT@GETREVUE.COBuy the rumor, sell the news."Buy the rumor, sell the news is a market adage based on the belief that stock prices move in anticipation of rumors and rebound when profit taking occurs after the actual news is released. It’s a risky tactic of stock trading based on just rumors or moving events. The investor, who stands to make a nice profit on their stocks, then dumps positions as the news is announced. Kenny Polcari explains. (from CNBC).I do not think we have had a clearer example of this phenomenon than Doge and Saturday Night Live.People were buying Doge for weeks in anticipation of Elon Musk's appearance on SNL, expecting massive gains on the mere mention of the beloved meme coin. My family members and friends who are not interested in crypto (and even my barber) were all asking me about Doge, and telling me they wanted to buy because of Musk.This was arguably the most crowded trade that I have seen in my life. Price continued to rise because people were "buying the rumor." It is a self fulfilling prophecy - everybody wants in before the event, which drives price further than the hype of the event itself is probably worth. This is what we mean when we say that the news is "priced in." If everyone already knows the news, then there should be no expectation of the actual event driving price further.I had no idea if price would actually drop, but I laid out a case in multiple places, including on TV. I absolutely love Doge, but rationally when a trade is overcrowded, the crowd does not get what they want. It's like everyone buying a lottery ticket for the largest prize in history and expecting to all win together.And, as anticipated, price crashed immediately during Musk's monologue.This was easy liquidity for the whales that control the majority of the Doge supply, or for any savvy trader with the ability to sell or short the coin. There was so much buying interest that someone could fill as many sell orders as their heart desired. A dream for a trader with a massive wallet.I have little idea where Doge will go next - it could moon once again. I just want to impart the idea that FOMOing into an asset and following the crowd is generally a recipe for losing money. Those who bought the top before the show were down 45% in a matter of hours.Livestream today at 2 PM. This should be fun - the market is going wild!https://www.youtube.com/watch?v=8SVqqmfi8IwIn This Issue:Bitcoin Thoughts And AnalysisAltcoin ChartsLegacy MarketsEthereum’s 50K Strike PriceDogecoin Is Literally Going To The MoonThe Push For Satoshis Instead Of BitcoinMy Recommended Platforms And Tools
The Wolf Den #238 - Buy The Rumor, Sell The News
The Wolf Den #238 - Buy The Rumor, Sell The…
The Wolf Den #238 - Buy The Rumor, Sell The News
This newsletter is sponsored by PHEMEX, the world's best crypto exchange for both spot and leverage. Sign up with the link above and get some free Bitcoin. I really encourage you to check them out.IF YOU HAVE ANY ISSUE WITH THE NEWSLETTER OR YOUR SUBSCRIPTION, PLEASE CONTACT: PREMIUMSUPPORT@GETREVUE.COBuy the rumor, sell the news."Buy the rumor, sell the news is a market adage based on the belief that stock prices move in anticipation of rumors and rebound when profit taking occurs after the actual news is released. It’s a risky tactic of stock trading based on just rumors or moving events. The investor, who stands to make a nice profit on their stocks, then dumps positions as the news is announced. Kenny Polcari explains. (from CNBC).I do not think we have had a clearer example of this phenomenon than Doge and Saturday Night Live.People were buying Doge for weeks in anticipation of Elon Musk's appearance on SNL, expecting massive gains on the mere mention of the beloved meme coin. My family members and friends who are not interested in crypto (and even my barber) were all asking me about Doge, and telling me they wanted to buy because of Musk.This was arguably the most crowded trade that I have seen in my life. Price continued to rise because people were "buying the rumor." It is a self fulfilling prophecy - everybody wants in before the event, which drives price further than the hype of the event itself is probably worth. This is what we mean when we say that the news is "priced in." If everyone already knows the news, then there should be no expectation of the actual event driving price further.I had no idea if price would actually drop, but I laid out a case in multiple places, including on TV. I absolutely love Doge, but rationally when a trade is overcrowded, the crowd does not get what they want. It's like everyone buying a lottery ticket for the largest prize in history and expecting to all win together.And, as anticipated, price crashed immediately during Musk's monologue.This was easy liquidity for the whales that control the majority of the Doge supply, or for any savvy trader with the ability to sell or short the coin. There was so much buying interest that someone could fill as many sell orders as their heart desired. A dream for a trader with a massive wallet.I have little idea where Doge will go next - it could moon once again. I just want to impart the idea that FOMOing into an asset and following the crowd is generally a recipe for losing money. Those who bought the top before the show were down 45% in a matter of hours.Livestream today at 2 PM. This should be fun - the market is going wild!https://www.youtube.com/watch?v=8SVqqmfi8IwIn This Issue:Bitcoin Thoughts And AnalysisAltcoin ChartsLegacy MarketsEthereum’s 50K Strike PriceDogecoin Is Literally Going To The MoonThe Push For Satoshis Instead Of BitcoinMy Recommended Platforms And Tools