ETH - $1350 Target Hit - Korea News vs Market Sentiment
We appear to have topped out at $1350 and are starting to correct, but we have to be aware of the "short crushing" extended top which often happens in Euphoric markets. The epic Bull Trap.
I have revised my targets for adding and have labeled the levels I will be looking to add after reviewing the chart and looking at my position costs. These are the levels I'm looking at and will decide when we get there if I do and how much. This is NOT a buy here sell here chart. These are levels I want to see how the market reacts and position accordingly. I am still being patient. Yes it is boring I know! But boring is good!
For the 30 or so that have followed me since my original posts I have mentioned time and time again "NEWS DOES NOT MATTER", its all about MARKET SENTIMENT! When CNBC starts using "cryptocompare" for a "reliable news source", I wonder what happen to the news in general. I mean seriously Cryptocompare? NBC you have reached a low in journalism! Second, its all about click bait. News is more about views then it is about giving you the facts. Remember the "China Syndrome"? Looks like it spread North! News in general is 80% entertainment 20% fact.
But this is old news dating back in Novemeber, where evidently it had a positive affect on the market. But those genius TA perma bulls that seem to post no matter what 100% trades will soon be blaming Korea for the selloff? The rocket men & Perma Bulls of Cryptos now have their excuse. It was Korea, not my horrid triangles and cup patterns!
When China proposed its "ban" on cryptos, I was clear that this was GOOD for the market, and that a ban would never evolve yet regulations would. It is NO different here! Too much money is involved and money drives government, and more importantly government officials. For those new to how businesses and Govt's work, you will soon hear these words. "Watered down regulation". In other words, the exchanges have not paid the ferry man. That ferry man is those needing to run for re-election and build their "money coffers". This will happen and the news will be "S. Korea to "soften" their stance on cryptos and will implemented KYC!" You will see both sides jockeying, on the news for or against, depending on whether they are conservative or liberal, and while they act tough, there will be dinners, and back room "negotiations". In the end we will get a "DEAL" which means everyone is now paid off which will be announced as a "compromise" under the guise of "watered down regulation".
Market sentiment is what drives markets. When sentiment is high things go up, when its low the market goes down. Its that simple! What is the gauge? The market itself. When "everyone" is bullish we must tighten it up, take profits building our cash position and be PATIENT! News may often be a catalyst for a change in sentiment, but is seldom the driving force of markets. The higher the sentiment, the more reaction you get to anything. Heck sometimes markets selloff for no reason!
Bottom line we have been prepared for weeks due to the market Euphoria. The longer the Euphoria, the harder the dip. Once you realize sentiment drives markets, you will recognize, prepare and embrace corrections. You will no longer buy highs, sell lows. You will no longer be a casualty but an opportunist. Long term the market is bullish and corrections are healthy. At least for those prepared to take advantage of them!
With 70% of our assets always in the market, we do not care if it corrects or not! Continues to go up so does our account. BUT when those dips happen we are ready to buy when the herd is selling. I know its boring watching the ticker, seeing real time price action, your buddy is bragging and you want to play. But this leads to portfolio erosion. Pick your spots wisely, and stay away from tickers. The goal of every trader is to have money to trade tomorrow!
I have revised my targets for adding and have labeled the levels I will be looking to add after reviewing the chart and looking at my position costs. These are the levels I'm looking at and will decide when we get there if I do and how much. This is NOT a buy here sell here chart. These are levels I want to see how the market reacts and position accordingly. I am still being patient. Yes it is boring I know! But boring is good!
For the 30 or so that have followed me since my original posts I have mentioned time and time again "NEWS DOES NOT MATTER", its all about MARKET SENTIMENT! When CNBC starts using "cryptocompare" for a "reliable news source", I wonder what happen to the news in general. I mean seriously Cryptocompare? NBC you have reached a low in journalism! Second, its all about click bait. News is more about views then it is about giving you the facts. Remember the "China Syndrome"? Looks like it spread North! News in general is 80% entertainment 20% fact.
But this is old news dating back in Novemeber, where evidently it had a positive affect on the market. But those genius TA perma bulls that seem to post no matter what 100% trades will soon be blaming Korea for the selloff? The rocket men & Perma Bulls of Cryptos now have their excuse. It was Korea, not my horrid triangles and cup patterns!
When China proposed its "ban" on cryptos, I was clear that this was GOOD for the market, and that a ban would never evolve yet regulations would. It is NO different here! Too much money is involved and money drives government, and more importantly government officials. For those new to how businesses and Govt's work, you will soon hear these words. "Watered down regulation". In other words, the exchanges have not paid the ferry man. That ferry man is those needing to run for re-election and build their "money coffers". This will happen and the news will be "S. Korea to "soften" their stance on cryptos and will implemented KYC!" You will see both sides jockeying, on the news for or against, depending on whether they are conservative or liberal, and while they act tough, there will be dinners, and back room "negotiations". In the end we will get a "DEAL" which means everyone is now paid off which will be announced as a "compromise" under the guise of "watered down regulation".
Market sentiment is what drives markets. When sentiment is high things go up, when its low the market goes down. Its that simple! What is the gauge? The market itself. When "everyone" is bullish we must tighten it up, take profits building our cash position and be PATIENT! News may often be a catalyst for a change in sentiment, but is seldom the driving force of markets. The higher the sentiment, the more reaction you get to anything. Heck sometimes markets selloff for no reason!
Bottom line we have been prepared for weeks due to the market Euphoria. The longer the Euphoria, the harder the dip. Once you realize sentiment drives markets, you will recognize, prepare and embrace corrections. You will no longer buy highs, sell lows. You will no longer be a casualty but an opportunist. Long term the market is bullish and corrections are healthy. At least for those prepared to take advantage of them!
With 70% of our assets always in the market, we do not care if it corrects or not! Continues to go up so does our account. BUT when those dips happen we are ready to buy when the herd is selling. I know its boring watching the ticker, seeing real time price action, your buddy is bragging and you want to play. But this leads to portfolio erosion. Pick your spots wisely, and stay away from tickers. The goal of every trader is to have money to trade tomorrow!
Thank you!