Gm friends,
Welcome back to another Premium Investor Report.
Let’s jump in!
Here’s what’s in today’s issue:
- Technical analysis on the current market.
- A DeFi tutorial on exploring yield and points opportunities in the Hyperliquid ecosystem.
For any crypto related questions please comment on the website.
Market Analysis
We’ve got some house-keeping to discuss today, before we get to the charts.
The TA content is changing. Moving forward, each week’s technical analysis will include one stock index, one metal, five blue-chip cryptos, and three stocks, likely in that order.
So what’s the reason for the change? Well, quite frankly, we feel like we’re leaving money on the table, by focusing so heavily on altcoins, and not pursuing opportunities across the stock, stock indices, and metals markets. Thus, we’re trying to find a better balance, because we think it will help us become better investors and traders.
Now why this order? Well, conceptually, I think it’s good to look at what’s happening with the stock indices, and then major metals, and then look at how Bitcoin is reacting to all of that (and obviously, alts will react to whatever Bitcoin is doing). Or to put it another way, getting a feel of the patterns and correlations between the indices and metals to Bitcoin will really help us with our Bitcoin and crypto bags.
Discord crew, feel free to ask any questions about the hows and whys above.
Ok, let’s get to the charts.
S&P 500 (Stock Index)
If you keep an eye on the S&P, then you’ll know that it generally likes to slowly grind upwards, unless we’re in a market contraction or recession phase. But basically, since 2022, the S&P has just been grinding up.
Now, we’re on the four hour chart below, and you can see that on Thursday of last week, the S&P had a 3% pullback, which almost led to a touch of the 100D EMA (i.e. yellow line). However, the index has since recovered, and currently it’s just 0.4% away from its all time high at 6,763.
Moreover, notice the MACD. The MACD line has crossed above the signal line, and both have crossed above the zero line. Bullish.
SIGNAL: No sense in getting chopped up in the middle. Either (1) go market long with a breakout into new all time highs above 6,763, or (2) set limit longs at the 50-4H EMA (i.e. blue line) at 6,650, for a cheaper fill.
Gold (Metals)
I can’t stop thinking about what happened to gold yesterday. Gold is the world’s largest asset by market cap (i.e. $28T), so for it to drop 6.6% in one day is a big deal.
It appears that some sellers decided to unload at $4,400. Gold bumped against this price for three days, but couldn’t break it. Prices dropped to $4,000 and that’s when buyers stepped back in, which makes sense.
Now the MACD line appears to be breaking under the signal line now, so let’s see if this bearish crossover plays out. And the RSI has been flushed out of over-bought territory.
SIGNAL: No trading signal this week. I think we mostly want to watch gold for now, and use it to help us forecast moves with Bitcoin.
Bitcoin (BTC, Crypto)
We’re zoomed in on the daily chart, and I do think we’re at a relatively important point to watch.
So the region between $107K to $110K is key. This region has served as an active support / resistance line…
Hi! My name is Lark Davis!
I’m a cryptocurrency investor with years of experience and I’ve been making consistent profits in the crypto space.
I’m passionate about helping others do the same, so I run multiple educational channels on crypto investing.
