You are viewing a single comment's thread from:
RE: TIB: Today I Bought (and Sold) - An Investors Journal #330 - Japan (Electronics, Industrials, Pharma), US Retail
What's the rationale for Home Depot (HD) on the Thursday before Thanksgiving and hold for 10 days after.
Also, why do you think Bitcoin is a buy at the moment.
One of Jim Cramer's mates did a technical analysis of HD. In every year for 33 years it was higher 10 days after Thanksgiving from the Thursday before. That said, I did not go back to the charts to check. I relied on someone else doing the research.
The Bitcoin trade is based on the way traders have been relying on short term levels to do their trading. With price dropping below the last support level ($4000 from September 2017) there are no levels to $3000 from June 2017. I have observed that short term levels carry more weight than we see in other markets. Price bounced between $3600 (a short term level) and $4000 (a longer term level) for about 10 days. When it broke above $4000, I expected it to pull back and retest, which it did twice.
So the trade is purely technical. My long term view is Bitcoin is not going away - so I only trade it long. Risk in the trade is when the big banks and the central banks and fiat governments decide to close it down or restrict access. The weekend action by Binance to close down access to customers residing in "sanctioned countries" is an example of the risk.