#trends 0003 : Bitcoin


Hi All,

First off, Precious Metals rallied big time this week. If you read last week’s newsletter on precious metals, I pretty much explained this without even anticipating this would be the week they would actually rally. My Silver position was up 30% and my Gold positions were up as much as 15%. Not bad!

Now let’s talk Bitcoin. This was probably the highlight of the past week. It broke through the $20K barrier and even went as high as $24K. As I write this, it is trading around $23.5K. This has been a historic milestone for Bitcoin. Anyone who has ever bought Bitcoin is pretty much in a profit. Even if you only bought 1 BTC just last week at $20K, you would have been +$4K in profit. In fact, I did just that just for the heck of it. I opened a BlockFi account 2 weeks prior and bought a small amount of BTC, which has now yielded a 20% return + accrued interest. I’ll talk about BlockFi another time, but it allows you to earn up to 6% interest payments on your crypto, accrued monthly.

I tweeted a few weeks ago about Bitcoin and how I have finally come to the understanding of why it matters. That realization forced me to start planning some type of allocation towards Bitcoin. In order to get to that level of understanding, you have to be able to correlate 3 key points, which are:

  1. What is Money?

  2. How the economy works

  3. Financial literacy

Now don’t get it twisted, I’m not saying that Bitcoin is the ultimate answer to fix it all. But what I am saying is that I finally understand WHY Bitcoin could be that answer to fix it all. Understanding the WHY is just as important for us to make those critical life decisions and take the appropriate steps towards protecting personal wealth. I plan to share more resources as time goes on to educate folks around Bitcoin, more to come.

In other related news, Coinbase, which is the largest crypo exchange has filed for an IPO. No date has been announced yet, but this goes to show how important crypto will become now, and in the future as we approach yet another milestone.

🔥 IPO Hotlist

Nothing in the pipeline this week due to the holidays.

⚖️ Watchlist

Here are the stocks I’m monitoring this week for swing trade opportunities:

  • Nio Inc. (NIO) - This seems to be forming an uptrend bullish pattern.

  • Draftkings (DKNG) - Draftkings may be setup for some upside as more expansion around online sports betting continues to grow.

  • Zoom Video Communications Inc. (ZM) - Zoom has been a little battered since October and may be at a reversal to trend up, especially as Europe goes on a full lockdown.

  • Precious Metals - Keep watching the Precious Metals space for more upside especially if the Stimulus Package passes and the U.S. continues to print more and more money.

  • Virgin Galactic Holdings Inc. (SPCE) - This got decimated this week after an abort of the test flight as well as large insider selling. Possibly more downside to come in the week.

🗺 One More Thing…

The UK just went into a full emergency lockdown due to a new mutation of the virus spreading, according to news reports. This is a major development only because this could rattle the markets this week depending on how bad it is. So be very careful trading. Definitely something to keep an eye on. In addition to that, the outcome of it could determine what we may or not be in for come 2021.

🔗 Links

  1. Coinbase announces IPO in a milestone for the crypto industry - Fortune

  2. Original Bitcoin Whitepaper by Satoshi Nakamoto - Bitcoin.org

  3. Free eBook: Inventing Bitcoin - Swan Bitcoin

  4. 7 Misconceptions About Bitcoin - Lyn Alden

  5. London Begins Emergency Lockdown as U.K. Fights New Virus Strain - Bloomberg

As always, this is not financial advice. I use this as a way to journal my thoughts and share with anyone else interested enough to want to read this, as well as for educational purposes only.