Premium Daily Crypto NewsletterSeptember 27, 2018
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Crypto Market Commentary
Mav's Daily Commentary
Markets Continue Upward March With Quick Spike
The Dips And Recoveries Are Becoming Faster As Market Sentiment Improves
The market climbed higher today, then shot up in the later hours.
We managed to hit 224 Billion, just shy of where we were earlier this week.
So, what’s causing this sudden rally?
The most likely culprit is the recent outcome of a fraud case, where a US Judge sided with the CFTC, ruling cryptos are commodities for the purpose of the case.
The defendants contended that “My Big Coin”, which the creators marketed as a cryptocurrency that can be mined and traded, did not deal with any “contracts for future delivery.” Therefore, it’s not a commodity under the Commodity Exchange Act (CEA), they argued.
But, the CFTC refuted that contention, stating:
“A ‘commodity’ for purposes of [the CEA definition] is broader than any particular type or brand of that commodity. Pointing to the existence of bitcoin futures contracts, [the CFTC] argues that contracts for future delivery of virtual currencies are ‘dealt in’ and that My Big Coin, as a virtual currency, is therefore a commodity,”
The Judge wrote, “The text of the statute supports plaintiff’s argument. The Act defines ‘commodity’ generally and categorically, ‘not by type, grade, quality, brand, producer, manufacturer, or form.'”
So the takeaway here is that this is not a mind-blowing decision, but it does mean that following her clarification on the commodity status of virtual currencies and bitcoin futures, the CFTC by extension can exercise its oversight function on other virtual currencies.
What’s also important to note is that this decision was already made in another case decided back in March, in which a Judge wrote, “Virtual currencies are ‘goods’ exchanged in a market for a uniform quality and value. … They fall well within the common definition of ‘commodity.’”
What was obvious from this is that the market took the news and ran, leading to a minor short squeeze.
There is also pressure on the market as the CME Bitcoin Futures expire tomorrow.
Additionally, you had permabulls jumping in on the move, such as Mike Novogratz calling for a “big move” in Q1 2019, and a crypto rally within a few weeks, saying:
“You’re seeing new institutions moving in. This building, ICE, their stock exchange is getting involved in a big way. We’re a partner there. That opens, I think, in November – their exchange…
There’s an institutional FOMO going on all of a sudden. You’re going to see big announcements. Goldman Sachs is already talked about how they’re announcing custody. And as you start getting custody and service providers in and around the system, it allows pension funds and endowments to get involved. There’s some big endowments that are already getting involved through the venture space.”
Finally, Coinbase announced and investor-friendly product with Coinbase Bundle. It allows users to buy all five of their available cryptocurrencies with just one purchase.
Those who choose to buy the Bundle will be buying a mixture of each currency in proportion to their USD market capitalization at purchase time. A Bundle is made up of Bitcoin, Bitcoin Cash, Ethereum, Litecoin, and Ethereum Classic.
Allowing people to invest in cryptocurrency by essentially giving them a mutual fund is a smart idea, and will continue to lower the barrier of entry for new investors.
Clearly, the market is in an interesting place right now. There’s a lot of hopeful sentiment returning to the scene, and we’ve certainly picked ourselves out of the depression we were in two weeks ago.
Importantly, we still have a long way to go before any “recovery” is in effect, but it is fascinating watching how this space continues to endure.
Doc will be doing a live class this Wednesday evening (and repeating it Thursday evening and Friday afternoon) on the topic “Chart Like a Pro: Four Powerful Rules for Crypto Trading.” He’ll boil down his advanced multi-timeframe Fractal analysis into four simple rules which can add structure to any system. Sign up for Wednesday’s session here.
We’ve started to produce episodes for The ReadySetCrypto Podcast; all of our episodes are posted on our blog (and on iTunes) and Episode Thirteen is now available. Episode Thirteen is our interview with the CEO of Internxt about his upcoming beta of distributed storage services using Xcloud. (like a Dropbox). Look for more episodes shortly as we comb the crypto space for valuable interviews, and create valuable content to keep you in the loop! See you tomorrow!
Doc's Daily Commentary
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Offense – Adding Trades
Offensive Actions for the next trading day:
- No entries showing at this point.
Defense – Managing Risk
Defensive Actions for the next trading day:
RSC Managed Crypto Fund
How to read this portfolio: Please read through the FAQ tab
- ETH/USD 2% added 8/10/2018 @ $363.14
- ETH/USD 2% added 9/9/2018 @ $200.50 (10% more to add)
- LTC/USD 2% added 8/10/2018 @ $62.56. (5% more to add)
- XMR/BTC 2% added 9/21/2018 @ .018BTC
RSC Altcoin-Exclusive Crypto Fund
Technical Analysis Research
In today’s video I discussed what it will take for some of the major coins to get up and move into uptrends. I’m pleased by the volume and overall activity that I’m seeing today.
In August we introduced a new “fund” project that we’ll be creating over the next few months, in piecemeal form. I will be slowly and methodically creating a “fund” with (currently) 23 assets that we will do “live” or at least very plainly indicate where we intend to enter portions of assets. As long as the market continues grinding down in a bear, we will use sentiment-based entries to hopefully secure a better entry. All that I saw were bear flags tonight; we are close to some good entries on coins showing positive divergence on the RSI. Going forward into the end of this year my plan is to do a LOT more swing trading; what would really help is a decent derivatives exchange. I am looking for big things from Digitex in this regard, which will be a commission-free futures platform however all trades must be made in DGTX as the base currency. Put yourself on the waitlist for this platform by clicking here. I have started to acquire DGTX tokens at Mercatox in anticipation of them turning up their platform, and this looks to be a good candidate for a pump prior to the production event. Here are the recent swings that we’re tracking in the portfolio below; :
- DGB/BTC – long @ .00000608 (7/23). My target exit is .000008BTC.
- WTC/BTC – Long @ .00155980BTC (4/23). My target exit is at .002BTC.
- ADA/BTC – Long @ .00003931BTC (5/1) My target exit is at .00005BTC.
- ONT/BTC – long @ .0008905 (5/20) My target is .0013BTC.
- ETP/BTC – long @ .000522BTC (9/21) My target is .00072BTC
Please keep in mind that if you want to follow these trades, I am using FIXED RISK POSITION SIZING. This means that I am using a fixed amount of risk capital that is based on my account size, like 2%. I am assuming that the trade will burn to the ground and that I will lose that entire capital position! Only in this manner can one effectively manage a position the way that you have to. If you’ve every checked your blockfolio nervously every 5 minutes when you’re underwater, this will prevent that. I will track these positions in this area and not in the main portfolio section. I will use a public portfolio tool to do so, which you can access by clicking below:
I hope you all got a chance to catch my webinar class from earlier this year; if not, the replay is available here. If you missed my earlier webinar, “More Profits in 2018; Ten Ways to Chart Like a Pro.” then you can catch the replay here. My new class “Introduction to Technical Analysis” is now available via our online store.
If you go to buy any of our courses at our online “store” you can receive $10 off the street price with your member’s “coupon code” of member18crypto..
Coinigy is a great tool for determining prices on each exchange, however I may not have access to the full suite of tools on TradingView charts. I am currently not using it as a front-end GUI for my exchanges, which it supports.I also use Blockfolio and/or Delta to give me a quick snapshot of my holdings, and find that it does an excellent job to aggregate all of my holdings into one easy-to-read snapshot of my cryptocurrencies, which are typically located in many different places.
I am also trialing the Profit Trailer and CryptoHopper trading apps which are working well in this choppy market.
Fundamental Currency Research
For flipping Good.
For long-term holding Neutral.
What is it?
What is our verdict?
What we like: Supernodes are very interesting. No trading commissions for users.
What we don’t like: There are many exchanges already on the market. Transaction mining isn’t currently solvent.
- Project name: Bgogo Exchange
- Token symbol: BGG
- Website: https://bgogo.com
- White paper: https://bgogo.com/assets/white-paper/BGG-Token-Whitepaper-v1.8EN.pdf
- Hard cap: 17,000 ETH (15,000 ETH during private sale and to supernodes, 2,000 ETH during public sale) for 10% of total tokens
- Conversion rate: Private sale: 1 ETH = 66,666 BGG; public sale: 1 ETH = 69,999.3 BGG.
- Maximum market cap at ICO on a fully diluted basis: $51 million based on current ETH price of $300
- Bonus structure: Whitelisted public sale participants have a 5% bonus over the private sale price, with no lockup period.
- Private sale: The private sale has already been completed with 10,500 ETH raised from 21 supernodes and 4,500 ETH from strategic investors.
- White list: Bgogo’s public sale will be a Genesis Mining event (exact date to be confirmed) that will start 24 hours before mining is officially opened to the public. Only whitelisted users can participate. Details on the Genesis Mining event can be found here: https://bgogo.com/announcement?link=mining.
- ERC20 token: Yes (will be switched to native tokens when the mainnet is launched)
- Countries excluded: TBA
- Timeline: TBA
- Token distribution date: TBA
2017- 2018Q2 Portfolio (Discontinued)
How to read this portfolio: Please click on the Chart Key tab above for definitions and color codes. The colors correspond to our 7 categories in the graphic below.