This is to inform our subscribers that we have opted to close out 1/2 the position we added at $5100 at these levels.  

Sell to close 1/4 Bitcoin at 6328

This still leaves us with our original inventory, the position we added at 3550, and 1/2 the position we added at 5100 reducing our average cost.  In discussing the current situation, as Marc and I do twice a day, the fact the alt-coin market has not participated in the rally, implies potential risk is to the downside.  There is also some changes from a technical standpoint as well.

This email has only gone out to our premium and expert subscribers, but since we did announce the trade on our podcast we feel an obligation to inform all of our followers of the change so the article is available to all subscribers. 


BTCUSD

The 6400 level was rejected after a 6 days of moving higher.  The formation of a pinbar would signal a bearish reversal in an area where a pullback is elevated.    As you can see the 12 hour bars up to this point have all closed very strong, and this is the first candle that is showing the initial signs of forming a bearish reversal pattern.

We will be looking to re-enter in the 4900 to 5400 area, and we will likely add an additional 1/4 Bitcoin as well.

Had this candle closed strong we would have waited for the next candle to form, but if a pinbar does form, the selloff can come swiftly.   Closing out 1/4 of our position provides an opportunity to lock in some profits, yet if the market does decide to move higher we still have some exposure.

Summary

In all markets you have to adapt to the current conditions of the market.  It is not our intent to time perfectly the top or bottom, but to buy into weakness and sell into strength, WHEN there is evidence that the market is turning.

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8 Responses
  1. jlhequities

    Alts will begin participating in several weeks. Go back to January 2017. Look at each alt when they they took off then. They were all diffrent timeframes. We are at the top on DXY. The same as Jan 2017. Look for the 2017 bull market to repeat in a similar fashion with alts joining in their own time.

  2. jlhequities

    They are no longer tied all together for the bull market. Only the bear market. Alts tanked 3rd quarter 2017 while BTC took off. Alts not participating is not risk to downside IMO

  3. jlhequities

    Stay long on Euro and BTC for next 18 months. The market is trading alts against BTC and not USD like the bear market. When each individual alt is ready the market will go from BTC into that alt and back into BTC.

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