The Wolf Den #84 - The Weekly Howl
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CODX (CO DIAGNOSTICS INC.)
This setup was shared almost a month ago in the newsletter on 7/14.
As it has continued to trend up, I have provided weekly updates. My main target was hit at the open of Monday at $29.72 and it continued to push slightly further, temporarily making a new all time high. This was over a 60% gain. For those that held the stock over the weekend, they woke up to a 30% gain early Monday (8/3/20) morning. It is currently searching for support below the previous all time high.
ALGO/BTC
This setup was shared on Thursday in my most recent newsletter, as seen above. Price did in fact break through the neckline of the double bottom and head to the target, surpassing it slightly and hitting the upper resistance. This amounted to roughly a 26% gain in 2 days.
It was another incredible week on The Wolf Of All Streets Podcast, brought to you by Blockworks Group. Host Scott Melker talked to Anthony “Pomp” Pompliano and Andrew Elliott. In case you missed either conversation, below are the key takeaways from each. Tune in next week, as Scott hosts Zuby and Ryan Radloff on the show.
The Wolf Of All Streets Podcast – Ft. Anthony Pompliano
Anthony “Pomp” Pompliano, founder of Morgan Creek Digital is arguably the most well-known figure in the Bitcoin community. In our episode, we discussed why he joined the army, an imminent great financial education awakening, and Bitcoin’s multi-decade plan.
Key Takeaways:
It has always been about building a community rather than an audience
The smartest people strive for truth over consensus, opposite of the masses
Bitcoin and digital currencies only get one shot at being right
If you aren't financially educated, the deck of life is stacked against you
It isn’t a secret that WallStreet has begun their exploration into Bitcoin
Watch on YouTube: https://www.youtube.com/watch?v=pNtQc8Ot91A&t=1723s
Listen on Spotify: https://open.spotify.com/episode/5wXaAORozsAQ2ekF38bbFQ
Listen on Apple: https://podcasts.apple.com/us/podcast/death-paper-money-anthony-pomp-pompliano-founder-morgan/id1500066831?i=1000487069248
The Wolf Of All Streets Podcast – Ft. Andrew Elliott
Andrew Elliot is the CEO of RoundlyX, a company revolutionizing the way people buy and invest in Bitcoin. In this episode, we spoke about his unlikely introduction to Bitcoin in between military intelligence patrols in Iraq and Afghanistan.
Key Takeaways:
“Bitcoin is still very small, it's market cap is similar to that of Comcast” - Andrew
Some of Bitcoin’s best use cases exist in destroyed countries
Poverty is one of the strongest factors leading to terrorism and crime” - Andrew
If you are a terrible trader like Andrew, use tools that do it for you like RoundlyX
“There is always a coin pumping harder, be happy with the bag you have” – Andrew
Watch on YouTube: https://www.youtube.com/watch?v=S5CYXxkWpsg
Listen on Spotify: https://open.spotify.com/episode/6xw2asnu4gEOZU9RM7c3T3
NK Using Altcoins To Convert $1.5B In Stolen Funds
The headline says it all here. We have always known that North Korea had a sophisticated cyber and hacking apparatus, but the use of altcoins to convert stolen funds into cash is a new development here. It will be interesting to track this story as it continues to unfold.
"Crypto Mom" Hester Pierce Voted In Until 2025
Hester Pierce, also known as “Crypto Mom” within the crypto community, was officially confirmed for a second term lasting through 2025. Her positive disposition towards the world of cryptocurrencies bodes well for the future of the industry. This is definitely bullish!
The most impressive people in the world all share one thing in common: they are constant learners. We should all strive to for the same. With that in mind, here is your quick financial education lesson of the week.
Futures 101
Written by Sahil Bloom:
Over the last several weeks, I've hit on the basics of some common forms of derivatives, including call options and put options. But there is more work to be done. So, let's go Back to the Futures. Sorry, I'll show myself out. Here's Futures 101!
Futures are a common form of derivatives. A futures contract is an agreement to buy or sell a specific amount of an asset at a specific price on a specific future date. Whereas an option gives the holder the right to buy or sell an asset, futures are an obligation.
A few key terms in futures: Tick Size: Minimum price fluctuation of contract; Contract Size: Quantity of asset in one contract; Notional Value: Contract Size * Underlying Asset Price; Delivery: Either financially settled (with cash) or physically settled (goods delivered)
When and why are they used? Futures have two key use cases: Hedging, Speculation. Let's use simple examples to look at each of them.
First, hedging. Imagine you are a rice farmer. You sell your rice to Happy Fish Sushi, a chain of sushi restaurants. If rice prices rise, that is good for you, but bad for Happy Fish. If prices fall, the opposite is true.
Both you and Happy Fish want to plan your business and limit your exposure to movements in the price of rice. So you make an agreement. You will sell (and they will buy) a set amount of rice at a fixed price on the 1st day of the month. This is a futures contract!
Now, whether the price of rice rises or falls, you know how much you will be selling your rice for and Happy Fish knows how much they will be buying their rice for. This is a simple example of how futures may be used to allow businesses to hedge - i.e. limit - risk.
Next, speculation. Another very simple example. Say I am bullish on gold prices. I think the price should be $2,000+ per ounce, but see the September futures contract is at $1,500. I buy one contract. September arrives and the price of gold is $2,500, just as I predicted.
My futures contract obliges me to buy at $1,500 per ounce, but I can sell at $2,500 per ounce. I can either (a) take delivery of the gold and sell it or (b) sell the futures contract to someone who will. I used futures to speculate on a price movement (and profited from it).
Highly-traded futures markets include commodities, stock indexes, currencies, interest rates, and precious metals. Trading in futures typically requires a margin account, which entails real risks.
So those are the basics on futures – Futures 101. Stay tuned for more as we dive deeper on this and other topics.
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Bitcoin Thoughts And Analysis
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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.