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 mid-week snapshot of market trends.
- A DeFi tutorial on how to use Nest for RWA-backed yield.
Market Analysis
With regards to the macro economy, US stocks are in a slight correction, amidst concerns of a possible AI bubble, plus doubts on whether we’ll get a December Fed rate cut. Right now, the odds of a Dec. 10th 25 bps cut are 48.6%.
Concerning more immediate issues, the big news to watch today is Nvidia’s Q3 earnings, which will be released after US markets close today at 4:00 PM EST. Expect Bitcoin to move, based on what’s released, and that’s because Nvidia’s earnings are an indicator as to whether AI is in a bubble or not (i.e. has too much or too little money been invested into the sector).
Now, the consensus expectation for these earnings is $54.8B to $55.2B. If earnings come in above this range, that should pump Bitcoin. If earnings come in at $54B or below, that will probably send prices lower.
Ok, let’s get to the charts.
S&P 500 (Stock Index)
The US indices are a helpful guide to understanding where crypto might be headed. But right now, the indices have put in their first local lower low since they hit all time highs at the end of October.
Now the indices normally have pullbacks (i.e. three steps forward, one step back), but the key is not being trapped in long positions when these indices start major, months long corrections. Therefore, tracking whether the indices are printing higher or lower highs and lows can help traders avoid these traps.
SIGNAL: No trading signal here. Just understand that we’ve printed our first local lower low, which is a small red flag to watch. Also note that the RSI has broken south of the 40, and the MACD lines are headed below the zero line. Continue to observe how this price pattern develops. Nvidia’s earnings today will be a good signal of where the indices are headed over the short-term.
Gold (Metals)
We hypothesized last week that gold might be in the beginning stages of a longer, multi-month consolidation pattern. And thus far, the signs are indicating that this is correct, because price continues to tighten up, while volumes continue to fall.
Therefore, now is an opportunity to scalp gold within this consolidation range, given there’s a good chance it might stay here for months.
SIGNAL: On your chart, draw the support and resistance lines that gold appears to be within, and then you can start longing at support, and shorting at resistance. So long as volumes continue to fall, that’s a good sign that gold will stay within its consolidation range.
Silver (Metals)
Before you skip this section, understand that there’s a good chance that you can already trade silver right now. A lot of the crypto exchanges offer silver contracts for trade (e.g. see ticker XAG in Lighter).
OK, so we’ve got to talk about silver here on the daily. It’s a text-book, and I repeat, a text-book double top pattern. So we’ve got the double top at $54.40. Check. The volumes during the second top were lower than the first. Check. And our neckline is clear at $45.50.
SIGNAL: Go long if you see price break above $54.40; or, go short if you see…
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.
