EOS: A Prime Example of Buy the Rumor Sell the News!
Now that we are a few month past the B1 announcement that turned out not to be anything crazy, let's take a look at the price action of EOS since it has become a poster child of the statement...
"Buy the Rumor, Sell the News!"
I have been actively investing almost twenty years now and that mantra is something I learned long ago (just need to remember to act on it).
It really does hold true in many many cases, whether it stocks, currencies or cryptos. In the end markets are driven alot by expectations and when a large event or news item looms people tend to fomo a bit which runs up the price.
At that point anyone who is in and up some money is likely to get out of dodge once the news comes out because either; A.) it was a disappointment or B.) they know it likely will see some kind of pullback as others book profit.
On occasion things will continue to pop higher, but the further out the anticipated news the less likely it is being all that time of anticipation to see price run up.
Clearly that was the case with EOS. Look at the chart, that top a few months ago was on June 1st, the date of the announcement of Voice, etc. - it doesn't get any clearer than that.
I'm playing the same game with the Canadian Marijuana Market.
Canada will be legalizing the production/sale of edibles for recreational purposes in October of 2019. So ... hopefully, the stocks of WEED, ACB, TGOD etc etc will climb with the anticipation of a new revenue stream.
But ... like your graph clearly demonstrates, I currently plan to sell shortly before the release date. (With the hope of buying back in after the dip).
Fingers crossed.
http://theconversation.com/canadas-legalization-of-weed-edibles-is-another-global-social-experiment-116919
I like it. I really need to get some exposure to the weed stocks. Any overall favorites to hold for the longer-term???
Hexo is a solid play since it has relatively less hype than major players and is backed by Molson/Coors. Horizons Marijuana ETF is a good way to play the market as a whole. Has a solid dividend.
Definitely agree
In no particular order, do some research on TGOD, Namaste, Aurora, HEXO, WEED and Horizons
There are many out there, but I’ve been keeping a closer eye on these ones. For long term, Horizons is a “safe” bet, but I think WEED will be around for a long time.
But this is obviously all speculation.
Based on this, TGOD is a "bargain" today as it dropped $0.5 base on a large number of warrants being executed.
Block one announcement was a real let down, but I was already more or less expecting it, everyone was creating too much hype on it. From what I got, Dan didn't announce everything he wanted to because someone told him not to (at least this is what the rumors say)... That b1 announcement was such a let down that it made me sell my EOS, not sure if I'll buy it back at a later date, I've been keeping up with the news and EOS has a huge dapp development team, but the whole sister chains and chinese block collusion is troublesome.
However, there are two sister chains that I actually like, Worbli and WAX, WAX for ingameitems, and Worbli seems to be a compliant chain that is trying to work with regulation to make the whole thing more institutions friendly (they might have a STO soon on their chain). Still need to research Worbli more though.
The EOS price might start to pick up since inflation is going to be decreased to 1% (less sell pressure?)
Sadly I didn't sell any as I was traveling at the time and kinda lost track of things. A tick up would be welcomed.
VOICE was clearly a commercial trap, that’s for sure
Posted using Partiko iOS
Was a letdown for sure.
No news since either which will just make it drag lower! I am surprised that they went ahead with the announcement just to make the community wait for months before deploying.
I've been watching the value of EOS declined over the past few months, but I've never taken the time and put two and two together.
I've just always heard, especially when investing, that reality is never as good as expectations so that's why it always dips, but people selling because of the impending "dip" makes since as well.
I know a lot of people that bought litecoin after it had already run up recently due to the halving not considering that the run-up to the litecoin halving was the price already getting built-in.