The Wolf Den #595 - Shorting Jim Cramer
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In This Issue:
Shorting Jim Cramer
Legacy Markets
Grayscale Launches A Mining Investment Vehicle
California Fights Inflation With Inflation
MakerDAO Buys Short-Term Bonds
Should You Invest In Crypto During A Recession?
My Recommended Platforms And Tools
Shorting Jim Cramer
The crypto space is weird. And because we have refused to play Wall Street’s games and surrender to our political overlords, we often get slapped with the short end of the stick when it comes to getting what we want. Our quirks and absurdities add more fuel to the fire. That said, I think we are all glad to have seen Vitalik rap on stage and to have seen a DAO community attempt to buy the Constitution? Right? Nobody does it quite like us.
Our weirdness makes us unique.
Wall Street, on the other hand, does a great job of polishing their shoes and bowing their ties (I'm aware that's not really a phrase). But deep down, they are even weirder than us.
Unlike us, traditional finance can play stupid games and win stupid prizes and get away with it. Nobody bats an eye. Jim Cramer can go on air every day, give terrible advice, underperform the market, and still get paid to do it all over again. Other “expert traders” can then file an ETF with the SEC to do the opposite of whatever he says, earn approval, list publicly, and collect investors' money.
Don't believe me? Tuttle Capital just submitted a preliminary prospectus to the SEC on Oct. 5th, which included a Short Inverse Cramer ETF (SJIM) and Long Cramer ETF (LJIM).
Now I can’t say for sure whether this will or will not get approved, but considering products like this already exists, I would not be surprised. Tuttle Capital has already launched an Inverse ETF betting against Cathie Wood’s ARK Invest, called SARK.
SARK, SJIM, and LJIM just scratch the surface of some of the ETFs that are publicly available. There’s also YOLO, UFO, and IPO if you want to get really creative with your investing.
Is there a spot Bitcoin ETF? No. Why? Because it is "too risky" for investors.
See what happens when you don't play their game?
You can short Jim Cramer, but your average American cannot gain spot exposure to Bitcoin through an ETF.
We pay the price for being weird and making our own rules, but no real crypto investor would have it any other way. If things turn out the way we suspect, soon everyone will be forced to play our game and we can have the last laugh.
Until then, we can short Jim Cramer to the floor.
*There is basically nothing worth sharing on the Bitcoin or altcoin charts. More exciting days are ahead. For now, we wait.
Legacy Markets
"US equity-index futures wobbled between gains and losses as investors awaited the latest payrolls report for clues on the monetary-policy path after a raft of Federal Reserve officials doused expectations for a quick halt to rate hikes."
Key events this week:
US unemployment, wholesale inventories, nonfarm payrolls, Friday
BOE Deputy Governor Dave Ramsden speaks at event, Friday
Fed’s John Williams speaks at event, Friday
Some of the main moves in markets:
Stocks
Futures on the S&P 500 were unchanged as of 7:49 a.m. New York time
Futures on the Nasdaq 100 fell 0.3%
Futures on the Dow Jones Industrial Average rose 0.2%
The Stoxx Europe 600 was little changed
The MSCI World index fell 0.2%
Currencies
The Bloomberg Dollar Spot Index was little changed
The euro was little changed at $0.9798
The British pound rose 0.3% to $1.1199
The Japanese yen rose 0.1% to 144.93 per dollar
Cryptocurrencies
Bitcoin fell 0.3% to $19,999.79
Ether fell 0.6% to $1,355.41
Bonds
The yield on 10-year Treasuries advanced two basis points to 3.84%
Germany’s 10-year yield advanced eight basis points to 2.16%
Britain’s 10-year yield advanced four basis points to 4.21%
Commodities
West Texas Intermediate crude rose 1.2% to $89.54 a barrel
Gold futures fell 0.3% to $1,715.60 an ounce
Grayscale Launches A Mining Investment Vehicle
One of Grayscale’s honorable traits is that the asset manager is on a quest to satisfy a broad range of investor desires. Their newest product, GDIO (Grayscale Digital Infrastructure Opportunities), is a “private, co-investment opportunity in mining hardware that powers the Bitcoin ecosystem.” As for the day-to-day operations, Grayscale’s affiliate Foundry plans to leverage its expertise in the mining sector. The fund is already available for eligible investors. Considering mining has not been profitable for a while now, this is either a genius opportunity to capitalize on a struggling industry or an irresponsible stunt. Time will tell.
California Fights Inflation With Inflation
In an attempt to mitigate the damage of inflation, California has decided to give away free money and potentially contribute to inflation. 23 million state residents are eligible for a tax refund of up to $1,050 as part of the state's Middle-Class Tax Refund program. To be fair, the money was not printed out of thin air - the refunds are part of a $308 billion state budget. Either way, the urge to give away free money inevitably contributes to the problem of rising costs. It’s a vicious cycle. Inflation has hit Californians hard, but fighting fire with fire is not a solution. Inflation is not looking so transitory.
MakerDAO Buys Short-Term Bonds
MakerDAO said it has initiated $500 million investment in traditional assets using its reserves.
The issuer of DAI has selected to allocate 80% of its stablecoin reserves into short-term US treasuries. Following a successful pilot transaction, the full investment is said to be ready and should happen in the next few days. The remaining 20% of the reserves, will be allocated to corporate bonds. This was decided by a community vote.
Having the community openly vote on how the reserves are distributed is definitely a step in the right direction for stablecoin transparency and adoption, especially when the final selection is low-risk traditional assets.
Should You Invest In Crypto During A Recession?
Thursday's live panel is back! Special guests:
1. Jeff Booth, author, entrepreneur, and technology leader: https://twitter.com/JeffBooth
2. Tom Dunleavy, senior research analyst at Messari: https://mobile.twitter.com/dunleavy89
3. Steven McClurg, CIO and co-founder at Valkyrie: https://twitter.com/stevenmcclurg
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The views and opinions expressed here are solely my own and should in no way be interpreted as financial advice. Every investment and trading move involves risk. You should conduct your own research when making a decision. I am not a financial advisor. Nothing contained in this e-mail constitutes or shall be construed as an offering of financial instruments or as investment advice or recommendations of an investment strategy or whether or not to "Buy," "Sell," or "Hold" an investment.
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