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 explore DeFi opportunities in the Monad ecosystem.
Market Analysis
Two big fundamental catalysts hit the wire for Bitcoin yesterday. Vanguard opened up crypto ETFs to their 50M clients, and Bank of America officially endorsed modest crypto exposure (1% to 4% allocations) to their wealth management clients.
And don’t think for a minute that Bitcoin’s move yesterday, in concert with this news, was a coincidence. It wasn’t. Understand that these catalysts serve as fresh capital inflows into Bitcoin and other blue-chip cryptos.
On the macro-economic front, things are looking pretty good across the board. More rate cuts and a dovish Fed Chair are coming. And QT has ended.
Ok, those are your macro updates. Now let’s get to the charts.
S&P 500 (Stock Index)
Last week, we thought that the S&P 500 might be in a falling wedge (bullish) pattern. And thus far, the price action we’ve seen over this past week confirms this.
Now look at the price action over these past three days. Prices broke above this wedge’s descending resistance, and now the bottoms of these daily wicks are resting on this resistance line. Falling wedge confirmed. Also note the MACD here on the daily. We’ve gotten a bullish crossover with both lines above the zero line (bullish).
SIGNAL: I like longs on S&P 500 leveraged products right now, given that prices are holding above this resistance line. But one note of caution are the volumes. We haven’t had elevated volumes on this breakout. So for a more conservative trade, wait for a high volume confirmation before going long.
Gold (Metals)
We’ve been talking about gold’s symmetrical triangle for a month now, and we got our breakout this past week.
Now let’s discuss these post-breakout candles and volumes. They’re actually signalling market indecision. Yes, we had high green volumes on the day following the breakout, but those volumes were accompanied by a shooting star candle (bearish). Then the day after that, we got low volumes on a hammer candle (bullish). Indecision.
But having said all that, prices are holding above the triangle’s resistance line, we confirmed a bullish MACD crossover, and the RSI keeps grinding higher.
SIGNAL: I like limit longs at $4,155. These will get filled if prices retest this triangle’s resistance as support one more time. But given the mixed signals we’re seeing, I would have a stop loss on this trade at $4,120.
Silver (Metals)
Silver is one of the most interesting long-term trades (i.e. months to years) in my opinion, and the ascending triangle we signalled last week broke out to the upside. Congratulations to anyone who caught this.
Now the technical take profit on this triangle breakout is $63, and maybe silver is going straight there. But we’re also seeing signs of buyer exhaustion right now on the chart. We’ve got bearish divergences on the RSI, CMF, and MACD.
SIGNAL: If you’ve got an open long on silver right now, this is a tough call, because I’m 50/50 as to whether silver goes higher or we get a mild pull-back here. But if you don’t have a…
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.
