Daily Archives: January 12, 2018

Dogecoin, Not Again!

Dogecoin (DOGE) $0.012558 (3.04%) | CoinMarketCap

The wild speculation in Kryptocurrencies continues, and this issue of a Dogecoin is just a remake or parody of pets.com, from the 2000 tech bubble days. The names may change, but crazy names in manias are pretty common.  People are buying into this mania by taking on debt on their credit cards. They don’t realize that it doubles their risk exposure to capital loss when they buy anything with borrowed money.

As of this morning there are 1419 Cryptos on my list with a total capitalization close to  $705 billion dollars. Not bad for creating something out of thin air. With ICOs exploding in the new year, this mania is far from over. They say Crypto mining can use as much electricity as all the electric cars combined. Electric cars, Internet of Things, and the growing electrical demand from Hemp farming, will put a huge demand on the electrical grid, and failures are bound to happen.

No way should you treat anything I talk about as investment advice, as any Crypto is about pure speculation and not investing.

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HMMJ, Hemp ETF Bull Market Update.

This chart is a bit old, but this morning’s action doesn’t change any of the wave counts. HMMJ is already at $20 this morning.

Talk about a wild ride with this Hemp related ETF. It peaked at $25.56 before it reversed in a dramatic fashion. Any move like this cannot be maintained and it must correct. To go vertical it does so under high speed until no more suckers are left chasing a bull market. As a herd they have to take a break form buying as well.

I counted the bottom as a truncated 4th bottom, but with a small degree. If there is more to this bullish phase, then we should get some type of a 3 wave declining wave structure, much bigger than any correction we have seen. We have gaps open well below present prices, but they can’t be trusted for potential reversals at this time. If we are in any type of a wave 1 top, then a 50-60% correction could happen.

The $13 price level is my previous 4th wave of one lesser degree, which also matches the bottom trend line. On Monday I sold my Hemp stock after going ballistic, but I will buy it back once a sufficient correction unfolds.

Finding a great bottom with this HMMJ ETF will not be a walk in the park, as we can be far off the mark when it happens. Now if the 6 o’clock news is full about crashing Hemp stocks, then chances are good any bearish phase has ended, and a reversal would be near. Of course we have no clue at what price level that can happen at.

Our entire planet runs on price and fundamental analysis, but everything I do is pattern related. The pattern has to show itself first, as it matters little if a wave 2 bottom is $5 or $50

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Gold Intraday Bull Market Review

Gold has had an amazing run, with a net move of about $100.  This great gold bullish phase could be coming to an end if  another wave 1 is getting close to completing.  Depending on the strength any wave 2 can dip back down with a net 60% retracement. This would make the 1270 price level a target. There is also no way of knowing how bullish the correction can be, especially if we get a flat of some kind. Running flats are a part of the wave landscape which can produce extreme moves to the upside.

The bottom trend line is just a guide as any correction bigger than expected, will slice right through this trend line.

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US Dollar Intraday Bear Market Update

The US dollar has made some violent moves lately. One minute it can be a calm decline and the next thing you know it wakes up and swings violently in both directions. Any asset class that is related to commodities has some serious leverage to it. I consider all currencies as a commodity as well. The majority could be just waking up to the fact that the US dollar is in a bear market, which is usually the time when downside consensus forecasts start coming out. This news is a little harder to find right now, but on major turnings, there will be no doubt in how the public will be feeling.

I dropped my degree level down by one degree, which makes the wave action seem more sensitive, which can also get us out of a trap. The degree level is so small that I’m scraping the very bottom of the list.

Any US dollar bear market is not over until more bears jump on this bandwagon going south. On the 10th a violent move up could also be part of a diagonal which contains mostly zigzags. We are presently on a very small move up, but could see more upside before it’s finished. It’s the US dollar decline which is the main driver of the gold price, but other times the inverse correlation is impossible to see for short periods of time.

We will have to wait until next week before we can find out how much more downside in the USD we’re still going to get. We can get a strong counter rally with the US dollar at any time, but it doesn’t mean the bear market is over.

Short term we could see some wild bullish moves, but in the bigger scope of things I’m still very bearish.

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