Mike
12-07-2017, 09:41 AM
I hope that the market will return to normal trading soon. I suspect that the FEDs plan to both reduce their balance sheet and raise interest rates will allow the market to correct soon. I won't offer an opinion whether their timing is good, it has to happen sometime.
In the meantime, I lately have been laughing about all of the bitcoin mentions on financial news. It seems that every news article has to mention bitcoin in some way. We are living in the largest asset bubble in four hundred years since the crazy tulip bubble of 1619-1622. The chart below shows bitcoin in the context of some other asset bubbles. The chart is from last week.
42973
I owned GBTC (bitcoin ETF) until last Wednesday, selling at $1770. Looking at the chart above bitcoin could double and still not beat tulips. It is just impossible to know when the mania will stop. I sold using my sell rules. In the chart below you can see that the bitcoin index has broken an upper channel like on a weekly chart (log scale). In my trading plan, I sell all stocks that definitively break upper channel lines.
42974
Still, bitcoin could go on a double from here.
In the meantime, I lately have been laughing about all of the bitcoin mentions on financial news. It seems that every news article has to mention bitcoin in some way. We are living in the largest asset bubble in four hundred years since the crazy tulip bubble of 1619-1622. The chart below shows bitcoin in the context of some other asset bubbles. The chart is from last week.
42973
I owned GBTC (bitcoin ETF) until last Wednesday, selling at $1770. Looking at the chart above bitcoin could double and still not beat tulips. It is just impossible to know when the mania will stop. I sold using my sell rules. In the chart below you can see that the bitcoin index has broken an upper channel like on a weekly chart (log scale). In my trading plan, I sell all stocks that definitively break upper channel lines.
42974
Still, bitcoin could go on a double from here.