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In This Issue:
FatFIRE
Iβm Joining Sniper School
Bitcoin Thoughts And Analysis
Altcoin Charts
Legacy Markets
Unleash The Google Ads
Eigen Layer Will Open For Restaking Soon
This is a First
You Should Trade These Altcoins (Massive Profit Potential) | Sheldon Sniper
Tesla Massive Dump, Stocks Rally, What's Next For Bitcoin? | Market Mavericks
FatFIRE
Let's cut to the chase - I openly identify as a crypto boomer. My pronouns are old and grumpy. No surprises there. But today, I'm mixing it up, taking a throwback leap of 20 years to delve into a fresh trend that's piqued my curiosity. Sure, I might be joining the bandwagon a tad late, not being a TikTok aficionado or a Reddit veteran, but I'm here to offer my unfiltered 'boomer' perspective.
Enter the world of FIRE and FatFIRE.
FIRE stands for Financial Independence/Early Retirement. 'Fat'FIRE is essentially FIRE with a twist, signifying an even more affluent lifestyle or financial cushion. It seems FIRE doesn't come with rigid rules or prerequisites. It's a community for anyone committed to or has already attained financial freedom and early retirement.
FatFIRE, on the other hand, represents a more opulent, comfortable spending style than the conventional FIRE approach. In my days, we simply called it saving for early retirement. However, today's generation has revamped the concept. And if you're thinking of telling me this trend has been around since 2010 or earlier, save your breath. I choose to believe it's a recent phenomenon.
At first glance, FIRE and FatFIRE radiate positivity. The movement's growth is largely attributed to the internet's role in democratizing access to FIRE-related knowledge and fostering connections among like-minded folks. The anonymity of the web has also made discussing personal finances more accessible and less intimidating. Moreover, the community prides itself on self-improvement and generous knowledge sharing, setting a more authentic tone compared to some other spaces.
Now, onto the critiquesβhow can one criticize a community centered on self-improvement? Well, I shit on crypto all the time; I earned a free pass to be honest here.
To understand where this movement was going, I put on my FatFIRE hat and took a peek at r/fatFIRE on Reddit - it has 391K members. What I witnessed was beyond belief. Dare I say, it made crypto look... normal?
In just a few minutes of scrolling, here were some of my highlights: βFat Fire Meetups, Fat Dating Non-Fat, Fat in-laws, Fat Minimalists, Fat Travel, and Fat Solutions for Knee Issues.β
I'm not implying that this Reddit group encapsulates the entire movement, but it's certainly at the heart of its evolution. Most of the posts I encountered were either displays of net worth, requests for complex advice better suited for professionals, or promotions for social gatherings.
This feels oddly familiar yet distinct from the crypto world's challenges.
Platforms like Reddit, TikTok, Twitter, YouTube, and Substack shouldn't be your go-to for professional advice. They're great for learning but crossing into advice-seeking territory is fraught with risks. Stepping into this realm reminds me of someone navigating Crypto Twitter for the first time, bewildered by the eccentric discussions ranging from farm animals debating Wall Street to the murky world of DeFi schemes.
Don't misunderstand; I'm all for financial betterment. My newsletter, backed by genuine passion and occasional sponsorships, is a testament to that. But remember, social media is just that - social. Keeping this perspective ensures you won't be let down.
Engaging in discussions about retirement and the quirks of aging can be enlightening, but taking these conversations as gospel is where the danger lies. Misinformation can lead to exploitation or worse.
The last thing I want is to stumble upon threads filled with regrets or worse, stemming from misadventures in FatFIRE. As I often caution in the crypto realm, be vigilant about what you share online.
It might seem ironic coming from someone with nearly 900 crypto newsletters, but stepping away from financial obsessions can be a breath of fresh air. Fixating on FIRE contradicts its foundational principles. Remember, professionals exist for a reason. If you're financially able, consult them before seeking advice from your FatFIRE circle.
And if professional advice is out of reach, save until it's not.
Wishing everyone a splendid weekend, Wolf out.
Iβm Joining Sniper School
I want everyone in my community to learn how to invest and trade the right way - but I donβt have time to create a course. To that end, I am partnering with the Crypto Banter team to help educate you on crypto for FREE. There are no strings attached, which is exactly why I agreed to be a part of this.
Since this cohort has just started, the only way in is to use my link. There will be future cohorts as well, so make sure to sign up if you are not free now.
Mark your calendars because this coming Tuesday, I'll be teaming up with Sheldon The Sniper for an epic workshop. The scheduled time is Tuesday, January 23, 1 pm ET, but this is just the beginning of my participation which will potentially continue indefinitely. This masterclass will be a collaborative session where we bounce ideas off each other, sharing everything we know. I just had Sheldon on my show yesterday, and it was epic, so I know this collab is going to be good.
The only way to join is to click on my link and join Sniper School - it is COMPLETELY free .
Bitcoin Thoughts And Analysis
I want to see the weekly candle close as high as possible, giving us a nice hammer, with a long wick down and small body. It would be amazing to see the body turn grey.
As you know, price bounced almost to the penny at the most key support level on the chart - which was the most key resistance on the way up. $38,600 is an area I was screaming about on the way up - it makes sense for it to remain important on the way down.
I do not know if the bottom is in, but this is looking increasingly likely, at least for the moment.
The daily chart printed a bullish hammer on Tuesday that has remained a clear reversal signal. Price also bounced off of the lesser used 100 MA, right out of the support zone.
The thing that gives me pause is that RSI has NOT made it down to oversold yet after being overbought with bearish divergence. It always makes it down to oversold eventually, but hard to know when. Could be on the next major dip far down the road. But statistically, you would expect it to hit when we are this close.
Clear buy signal from Trading Alpha. If you have been following my streams and read my newsletter, you know that this has become my go to indicator for scanning the market and identifying opportunities.
Green arrow after squeeze shading, breaking track line. Doesn't get much clearer.
If you are trading, these indicators are a must - you can access them RIGHT HERE.
Just a reminder that my favorite indicator on the planet is bullish divergence with oversold RSI.
Altcoin Charts
For those who are new here, I share SETUPS and not SIGNALS. These are ideas that I am watching - if a certain thing happens, then the trade triggers. I am not telling you what to buy or when. I am showing you how I am watching certain charts and what has to happen for me to take a trade.
Total3 is the market cap of crypto, excluding Bitcoin and Ethereum. Looking at this can give us an idea of how much interest there is in the rest of the market, outside of the two titans.
While charting assets like this can be a bit nonsensical because they are not traded, charts still tend to give us clues as to what is going on.
In this case, Total3 has clearly retested a key support multiple times with success - 453B. As long as that area holds, altcoins look generally healthy and risk on. You can see the potential if they head up to resistance levels. This keep me bullish on the altcoin market for now, although I think Bitcoin will dominate in the short term if it heads up.
Legacy Markets
European stocks experienced a rise, fueled by impressive earnings and the anticipation of declining euro-area interest rates from April. The Stoxx 600 index saw a 0.9% increase, notably driven by a 10% surge in LVMH shares after the luxury brand reported robust sales in the fourth quarter. This uptick also influenced other luxury companies like Moncler SpA and Richemont, further buoyed by a favorable rating from Barclays Plc strategists.
Contrastingly, US futures indicated a pause in Wall Street's recent record-setting rally, primarily due to a gloomy outlook from Intel Corp that led to over an 11% drop in its premarket trading and affected other tech stocks like Advanced Micro Devices Inc. and Nvidia Corp.
Despite this, overall sentiment in equities remains optimistic, evidenced by a significant $17.6 billion investment into global equity funds in the recent week. This bullish trend is supported by strong earnings and the belief that both the Federal Reserve and European Central Bank are preparing for rate cuts.
Market confidence is further bolstered by the perspective of a 'soft landing' for the US economy, a notion reinforced by recent GDP data and the upcoming release of the core personal consumption expenditures index.
In other news, European markets reacted positively to ECB President Christine Lagardeβs remarks, hinting at potential rate cuts from mid-2024. Meanwhile, Asian markets, particularly Chinese and Hong Kong shares, experienced a drop after an impressive rally, despite fresh stimulus signals from Beijing and a record inflow into Chinese equity funds.
In the corporate sector, Visa Inc. reported a profit surpassing Wall Street estimates, Volvo AB is adjusting its production to align with normal demand, and Remy Cointreau enjoyed its largest intraday gain since March 2020 after announcing third-quarter results. Apple Inc. is set to undertake significant changes to its iOS, Safari, and App Store services in the EU to meet new antitrust regulations.
Key events this week:
US personal income/spending, PCE deflator, pending home sales, Friday
Some of the main moves in markets:
Stocks
S&P 500 futures were little changed as of 5:22 a.m. New York time
Nasdaq 100 futures fell 0.2%
Futures on the Dow Jones Industrial Average were little changed
The Stoxx Europe 600 rose 0.9%
The MSCI World index was little changed
Currencies
The Bloomberg Dollar Spot Index fell 0.1%
The euro rose 0.1% to $1.0857
The British pound rose 0.1% to $1.2727
The Japanese yen was little changed at 147.75 per dollar
Cryptocurrencies
Bitcoin rose 0.6% to $40,162.84
Ether fell 0.2% to $2,213.51
Bonds
The yield on 10-year Treasuries declined two basis points to 4.10%
Germanyβs 10-year yield declined three basis points to 2.26%
Britainβs 10-year yield declined three basis points to 3.95%
Commodities
West Texas Intermediate crude fell 0.8% to $76.45 a barrel
Spot gold was little changed
Unleash The Google Ads
Google's advertising strategy seems as indecisive as a bewildered ex-partner, constantly wavering and hard to pin down. On a different note, the dynamics of GBTC outflows are showing signs of stabilizing, though we're not at a point where total inflows consistently outweigh the outflows. Presently, GBTC's outflows are still more pronounced than net inflows into other funds. Despite this, the broader context reveals a positive trend, with rolling net flows exceeding $800 million last I checked. While the immediate impact of Google ads might be negligible, their cumulative effect over time shouldn't be underestimated.
On the Bitcoin front, ETFs are soaking up the supply from miners, a situation set to intensify with the approaching halving. There's a prevailing sentiment that everyone is poised to buy on 'the next dip,' yet these dips have a knack for catching the market off guard. It's a reminder that timing the market is an unpredictable game, often defying the crowd's expectations.
Eigen Layer Will Open For Restaking Soon
Eigen Layer, a prominent staking protocol on Ethereum, is set to briefly reopen its restaking window for deposits, starting from February 5 at 12 PM PT until February 9 at 12 PM PT. For those who stick to traditional investment strategies or are Ethereum purists, you might want to skip this part. However, for the adventurers among you who don't mind a bit of risk, Eigen Layer offers an early and potentially exciting opportunity for an airdrop.
While the team hasn't made any official announcements about an airdrop, participating in staking and restaking on the platform could earn you points, which may play a role in a potential airdrop later in the year. It's important to underline that this is speculative, so thorough research is advised (DYOR). I might offer a detailed breakdown of Eigen Layer in the future, but for those keen on getting a head start, take note of the restaking window mentioned.
This is a First
Crypto never fails to make its mark, even in the realm of ETFs, adding a touch of its unique flair. The community's penchant for playful antics was on full display when, less than a day after Bitwise disclosed its public Bitcoin address, someone cheekily sent 6,969 Satoshis just for kicks. It's tough to picture a parallel in the traditional ETF space, where someone would donate the underlying asset directly to the fund. But in the crypto universe, expect the unexpected. If this trend catches on, who knows? Bitwise might just start contributing overcollateralized Bitcoin themselves.
You Should Trade These Altcoins (Massive Profit Potential) | Sheldon Sniper
Join Sheldon Sniper and Dan from The Chart Guys in a massive trading live stream!
Tesla Massive Dump, Stocks Rally, What's Next For Bitcoin? | Market Mavericks
Welcome to the 'Market Mavericks' Show, where action-packed analysis meets profitable trade setups, led by three of the world's foremost chart technicians. This is your front-row seat to the fast-paced world of trading and investing, stocks, crypto, commodities, and more.
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TheΒ 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.