Premium Daily Crypto NewsletterSeptember 23, 2018
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Crypto Market Commentary
Mav's Daily Commentary
Week In Review
Markets Explode Higher; Will This Next Week Have Us Sustain Or Fall Back Down?
This week in crypto we saw the total market cap languish, trading around the 200 Billion mark for the majority of the time. Then on Thursday was saw an explosive jump to the upside, leaving us finding a new level at 225 Billion. This is also the first time we’ve seen the market break 24hr volume of 25 Billion since July.
The most obvious catalyst of this upswing was the U.S. Securities and Exchange Commission (SEC) request for further comments regarding its decision on the listing and trading of VanEck and SolidX’s Bitcoin (BTC) exchange-traded fund (ETF), which is expected to list on the CBOE BZX Equities Exchange (BZX). In their notice, the SEC asks for additional comments from interested parties addressing the proposal. The SEC is seeking comments on eighteen key question, among which are commenters’ views on BZX’s assertions that BTC “is arguably less susceptible to manipulation than other commodities that underlie exchange-traded products (ETPs).” Of course, taking the stance that the BTC market, and the overall crypto market, is not manipulated is borderline absurdity. It’s true that there are very different metrics by which to move Bitcoin and the crypto market, as the application states, “there is no inside information about revenue, earnings, corporate activities, or sources of supply; that it is generally not possible to disseminate false or misleading information about bitcoin in order to manipulate; that manipulation of the price on any single venue would require manipulation of the global bitcoin price in order to be effective.” Even still, as manipulation is often perceived as only negative, you could very well argue that the SEC’s notice positively manipulated the market. I do think it’s worth repeating the comments of the dissenting SEC commissioner, Hester Pierce. She argued that it was wrong for the agency to focus on manipulation in the spot market for Bitcoin and that the risks in question were taken into consideration when these agencies made their pitch to the SEC. “I think the exchange, in making a decision to list this particular product, had looked into whether it thought investors were interested in it, and if investors are interested in it, I don’t see why we should stop them from having access to it.” Peirce contended that “approval of this order would demonstrate our commitment to acting within the scope of our limited role in regulating the securities markets.” “If someone is trying to raise money for a legitimate project, as long as the person explains what he’s trying to do and what he’s going to do with the money that reveals everything material that investors need to know – I don’t think we should stand in the way.” Ultimately the SEC exists to protect investors, and it is a very difficult position to hold. I do think that, even if this application is not approved, we have already moved the ball enough that the common rhetoric places emphasis on an exchange-traded product. What we will see is that even if the SEC decides not to move forward with this application, by this time next year there will be more applications and the market will be more mature. Essentially, it’s not a question of “if”, but “when” regarding the overall market maturity in combination with products like a Bitcoin ETF. Still, there is much progress to be made. A new report published by the New York Attorney General’s office states that cryptocurrency exchanges are vulnerable to manipulation, conflicts of interest, and other consumer risks. The findings, part of the “Virtual Markets Integrity Initiative” that consisted in surveying 13 cryptocurrency exchanges, found that an absence of standard methods for auditing virtual assets results in the lack of a consistent and transparent approach to independently auditing digital currency traded on exchanges. This is why we will be moving slowly, but deliberately, forward on these issues. The new normal is a market which gravitates towards solutions regarding manipulation and scalability. Only by tackling these can progress be made. Ultilatemly a more transparent and faster market will be what helps us find acceptance around the world. It’s exciting, isn’t it? The winds of change are coming. Doc has started to do a frequent live “Trade School” video; watch for announcements and links in the “Premium Chat” room of our Discord site. If you missed Mav’s webinar “Top Ten Ways to Create Passive Income With Crypto” then you can watch the webinar at this link. 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. (6% more to add)
- XMR/BTC 2% added 9/21/2018 @ .018BTC
RSC Altcoin-Exclusive Crypto Fund
Technical Analysis Research
Friday’s entry into the ETP swing looks good so far, especially if the price is able to CLOSE above the breakout level today (Sunday). Everyone wants to get into XLM at this point but we have to wait for the next base to set up. A new higher high is a very good thing for XLM and for the rest of the crypto market, wherever it comes from.
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.