As an investor and trader, it’s all about keeping your finger on the pulse, assessing the markets, taking into account the indicators, the signs, and trends, and being aware of probabilities.
Sometimes it’s about not doing anything, not acting on emotion, waiting…
And other times it’s about GETTING IN QUICK!
As Dennis and Keith explain in this week’s brilliantly insightful edition of Trades Of The Week!
It’s also about taking profits when the markets are bottoming out, which they appear to be doing…
Or are they?
It’s almost as if the Investing & Trading Gods are toying with us!
MARKETS
Investors are asking themselves every second of the day – have we now seen the bottoming out of the market? All we can say is – there are signs it is… but we can’t say for sure, yet!
For instance…
The Fear & Greed Index may be showing us the way as it has gone from Extreme Fear to plain old Fear.
The Dow Jones Industrial Average Index is perhaps giving us a little clue as to that bottomed out at 29,665.00 and has been rallying up a little.
But with Quarter 2 coming to a close… is there a lot of bluffs?
Investors and the investment funds need to rebalance their equity books so they need to be buying into equities to balance it up. This is called “window dressing” – it makes their balance sheets look good at the end of quarter two and then in quarter three they can sell back off.
On the other hand, the end of Quarter 2 will bring GDP news. If it’s in negative GDP for the second quarter in a row, that could indicate a recession looming.
What does this mean for us?
The main thing we need to be looking at is our current investments, we’re not accumulating right now. Why? Because the markets are just not falling at the minute.
AND YET…
Despite this little limbo-land we are still enjoying making good profits and discovering new entries, positions, and great buying opportunities in a wide range of asset classes!
Again… it’s the beauty of DIVERSIFICATION! Cryptos… Bitcoin… stocks… even commodities.
BUFFALO
PHYSICIANS REALTY TRUST (DOC) – we made a healthy 1.7% profit this week.
INTERACTIVE BROKER’S GROUP (IBKR) – closed at 0.5% profit. Is that anything to write home about? YES… because it’s important to lock that in, we never want to turn a profitable trade into a losing one!
ODP CORPORATION (ODP) – no trade, but we put a stop order on, in case it pushes up.
ALBERTSONS COMPANIES (ACI) – 0.5% profit here too… again, we like that.
NV5 GLOBAL (NVEE) – upward trending buffalo, looking at 4 to 1 risk-reward.
CRYPTO
BITCOIN has been on a roll – well not really, it was a roll downward. It really collapsed. It hit 17,600 (depending on what exchange you were looking at) and then recovered quite quickly to 21,000 – but we shall see what happens next.
Question is – what do you do now? That’s down to whether you believe in the Bitcoin/Crypto/Blockchain narrative. If you do – then 20,000 is a relative snip!
We are buyers, we don’t believe bitcoin will go to zero.
There are a lot of interesting updates concerning COINBASE, MATIC, SOLANA and POLKADOT which prove to us that the crypto ecosystem is not going to suddenly disintegrate overnight… or even ever!
COINBASE – has been operating two platforms, but they are now merging Coinbase Pro with its general Coinbase. That should involve automatic transference of their funds, but it is good to keep an eye on in case you need to act.
MATIC – firstly, it has fallen to -82%! A great entry point.
There’s also other good news as Coinbase has added support for Matic as well as SOLANA, which means you can now send coins out of Coinbase may be to Binance and other exchanges, and do it a lot cheaper than ETHEREUM.
POLKADOT – is a Layer 1 competitor to Ethereum and has had the most amounts of accumulations by bigger funds – 28 out of 50 funds have invested in Polkadot.
We are investing with our CCA strategy, we’re in at -80%, and we have gotten in at -50, and -70, so we are well-prepared for the next move up.
It’s a GREAT time to invest.
Coinbase is also expanding the number of coins they are able to list and that in turn helps Coinbase as a company. It means there’s a lot more adoption – people are more willing to buy than sell.
VCA
NEW ADDITIONS/POSITIONS
WALT DISNEY COMPANY (DIS) – added new entry at -54%, very exciting this, to get in lower and add more money to it because Disney will not go to zero, right, which remember, is one of the rules.
BARRICK GOLD (GOLD) – went down -30%, we’re noticing some recovery in gold which is good to see.
iSHARES SILVER TRUST (SLV) – this is a sliver ETF, an ETF over silver really tracks the price to some extent, there’s a basket of silver miners – we’re down -20% from the high which allows us a first entry point and silver is definitely an asset, it can’t go to zero and who knows it might even thrive if the market goes down a lot more.
So, remember – the importance of DIVERSIFYING is crucial for your success long term.
RESULTS
STOCK MARKET
Buffalo: +64.2% on total portfolio (+2.2%)
VCA: +1025% on money invested
CRYPTO
CCA: +1,510% on money invested
Small Cap: 4,320% on money invested
