The Wolf Den #27 - Markets, Bitcoin, Chart Requests, $FUN
thewolfden.substack.com
It is remarkable watching the stock market over the past two weeks. It is a perfect visualization of human emotion - absolute fear and greed swinging back and forth based on irrelevant narratives on an hourly basis. Stocks were up yesterday because of Biden, right? Then why are they down today? Did he die? No matter how much the market goes up or down on a given day, it is unhealthy. We want stability to trust the market.Turn on CNBC if you want entertainment that is better than any reality show. They flip narrative constantly, nobody agrees on why things are happening, and everyone is running around in the background like a chicken with their head cut off.I guess now they know what it's like to trade Bitcoin!As I have said before, I do not believe that the stock market bottom is in. The disease will get worse, people will consume less. Any rational person knows what that should mean, fed rate cuts and QE aside. The CME shows that the market expects another rate cut at the March meeting (100% chance), another at the April meeting (80% chance) and another in May (80% chance).If this happens, even a 25 basis point cut at each meeting will bring rates down to .25 or 0. Think about that for a moment. The market is currently trading with the expectation of 0% interest rates! It is already priced in, which means that the Fed is completely backed into a corner. Unlikely to end well.This has been a GREAT trading week. MATIC, HBAR, POWR and THETA all moved up nicely - I shared all of these on Tuesday. I have also had somewhat great trades on CHZ and COTI since we last spoke. FTM has also been rising, as well as DUSK. Some of these I shared on Twitter, because we were between newsletters. Get it while it's hot, the alt markets still looks good to me for now. We all know that can change based on Bitcoin at any moment.A general note - whenever I draw a line on a chart, it should be viewed as elastic and not static. It is more of a zone. So the areas around those lines are usually more accurate. Further, I try to use multiple techniques and indicators on various charts, so if you are learning TA, you should read through all of these to see how I blindly look at a chart. A lot of these charts look great. If you are a new member, please refer to Issue 10 (you can click on it here - https://www.getrevue.co/profile/TheWolfDen and have it sent to you) for instructions on how to make my charts your own.IMPORTANT NOTE - I will only accept requests on Wednesdays, between 8 AM and 1 PM EST. That will make sure that they are your most pressing requests. Please mark it in your calendar and email me by responding to this email!
The Wolf Den #27 - Markets, Bitcoin, Chart Requests, $FUN
The Wolf Den #27 - Markets, Bitcoin, Chart…
The Wolf Den #27 - Markets, Bitcoin, Chart Requests, $FUN
It is remarkable watching the stock market over the past two weeks. It is a perfect visualization of human emotion - absolute fear and greed swinging back and forth based on irrelevant narratives on an hourly basis. Stocks were up yesterday because of Biden, right? Then why are they down today? Did he die? No matter how much the market goes up or down on a given day, it is unhealthy. We want stability to trust the market.Turn on CNBC if you want entertainment that is better than any reality show. They flip narrative constantly, nobody agrees on why things are happening, and everyone is running around in the background like a chicken with their head cut off.I guess now they know what it's like to trade Bitcoin!As I have said before, I do not believe that the stock market bottom is in. The disease will get worse, people will consume less. Any rational person knows what that should mean, fed rate cuts and QE aside. The CME shows that the market expects another rate cut at the March meeting (100% chance), another at the April meeting (80% chance) and another in May (80% chance).If this happens, even a 25 basis point cut at each meeting will bring rates down to .25 or 0. Think about that for a moment. The market is currently trading with the expectation of 0% interest rates! It is already priced in, which means that the Fed is completely backed into a corner. Unlikely to end well.This has been a GREAT trading week. MATIC, HBAR, POWR and THETA all moved up nicely - I shared all of these on Tuesday. I have also had somewhat great trades on CHZ and COTI since we last spoke. FTM has also been rising, as well as DUSK. Some of these I shared on Twitter, because we were between newsletters. Get it while it's hot, the alt markets still looks good to me for now. We all know that can change based on Bitcoin at any moment.A general note - whenever I draw a line on a chart, it should be viewed as elastic and not static. It is more of a zone. So the areas around those lines are usually more accurate. Further, I try to use multiple techniques and indicators on various charts, so if you are learning TA, you should read through all of these to see how I blindly look at a chart. A lot of these charts look great. If you are a new member, please refer to Issue 10 (you can click on it here - https://www.getrevue.co/profile/TheWolfDen and have it sent to you) for instructions on how to make my charts your own.IMPORTANT NOTE - I will only accept requests on Wednesdays, between 8 AM and 1 PM EST. That will make sure that they are your most pressing requests. Please mark it in your calendar and email me by responding to this email!