“Crypto Winter?” More like a crypto Ice Age.
Coinbase (COIN) continued to plummet and Robinhood (HOOD), with talks of a takeover fading, once again ended in the red.
BTC is struggling to hold $20,000 and ETH is below $1,200.
What’s the right move in this situation? What should we do immediately? What is the correct action to take now, NOW, NOW!?!
Well, the answer may simply be to do nothing.
All disclaimers taken as read – there’s always a bull market somewhere and options provide a way to profit in any kind of market, even if it is just going “sideways.”
But with all that out of the way, there’s an important point that I feel we don’t pay enough attention to.
When the market is in turmoil, the best way to win the game might be not to play.
There’s no obligation that you must make a trade now. With conflicting reports about the likelihood of a recession and the situation in Ukraine literally changing hour by hour, flexibility is arguably more important now than anything else.
Cash is king, and this is a time to prepare.
More than that, this can be a time to train – to become more familiar with the trading tools and data analysis that will allow you to make gains in any market.
You can’t just jump into this. It’s something that you need to learn step by step, trade by trade – even if you are just using “paper trading” without real money as you begin.
As I’ve said before, we’re approaching another opportunity where fortunes are going to be made. When the market hits bottom, it will be a time for those who have the capital and the knowledge to begin a legacy that will last forever.
Make sure you are ready. Think of this as your time to train.
Put your favorite montage music on in the background (anything from “Rocky” is an acceptable choice) and let’s get to work.
Don’t miss Chris Hood’s column today on how you can do it.
Keep Moving,
In this week’s Hood Talk, Chris looks at the market through three time frames – the daily, monthly, and weekly charts.
This isn’t just guesswork, but an analysis using tools that hedge funds are willing to pay millions of dollars to use.
WORD ON THE STREET
Crypto Winter, Cathie’s Recession, No Right To Party
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The Night King Comes For Crypto – “Crypto Winter” is well underway. Coinbase lost about 9%, Robinhood was down about 3%, and cryptocurrency exchange CoinFlex has been reduced to issuing a new coin to pay off a deficit. CoinFlex said a major investor couldn’t repay a debt and because of a certain legal clause, could not have his position liquidated. Last week, withdrawals had been halted because of “extreme market conditions.” There’s no guarantee those will be ending anytime soon.
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The Fun Police Have Arrived – Early in the COVID-19 pandemic, Airbnb [ABNB] imposed a ban on parties. Now, that ban is permanent, and it’s not about “stopping the spread.” The company has permanently banned “disruptive parties and events.” “The temporary ban has proved effective, and today we are officially codifying the ban as our policy,” it announced.
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Recession? Well, Ark Innovation Certainly Is In One – Cathie Wood of Ark Invest said that the United States is already in a recession. “We were wrong on one thing and that was inflation being as sustained as it was,” she said in an interview. Some investors might think she was wrong about some other things too. Ark Innovation ETF is down more than 50% so far in 2022.
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Disney Backs Its CEO – Disney CEO Bob Chapek’s tenure has not been quiet. Not only has he had to deal with COVID-19, but Disney has made an enemy out of the current governor of Florida as it tries to navigate the culture wars. Nontheless, the board still backs Chapek, as he received an extension to keep his job until at least 2025.
HOT SPOTS: What’s Going on in Geopolitics
- NATO Reaches Deal With Turkey For Finland, Sweden – According to NATO Secretary-General Jens Stoltenberg, the Atlantic alliance has reached a deal with member state Turkey that will allow Sweden and Finland to join. Turkey has previously expressed opposition to NATO’s expansion into the Nordic countries because it charged Finland and Sweden weren’t doing enough to combat Kurdish terrorist organizations. Now, Turkey is receiving a huge amount of concessions, including intelligence sharing from other NATO members.
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China Censors COVID Plan – A Communist Party official was quoted in state media as saying China’s “zero COVID” policy – which most experts regard as utterly unworkable – will be in place for “the next five years.” Beijing Communist Party head Cai Qi had said the city would “resolutely” uphold pandemic control measures. However, following a furious backlash on already controlled Chinese social media, the quotation vanished. Beijing Daily has removed the reference to “the next five years,” blaming poor “editing.” Whatever they say.
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Macron: Russia Can’t Win – President Emmanuel Macron of France blasted Russia’s strike against a mall as a “new war crime.” He went on to say that Russia “cannot and should not win” the war, a departure from his previous rhetoric. In the past, Macron has tried to strike a middle ground, arguing against any attempt to “humiliate” Russia because a hardline policy would simply make the war last longer.
CUTTING EDGE: What‘s Happening In Tech
- Tesla Lays Off 200 – Tesla has let go hundreds of workers from its “Autopilot” team. Elon Musk has said that his new factories are “money furnaces” as the company struggles from supply chain disruptions and the general economic decline. TSLA was down 5% during the trading day.
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Pinterest Up After CEO Gone – Quite a contrast to Disney. Pinterest CEO Ben Silbermann is stepping down from his role and investors were jubilant. Pinterest (PINS) was up over 4.3% during after-hours trading. Silbermann will remain involved with the company but the new CEO is Bill Ready, a seasoned executive with past tenures at PayPal and Google.
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FBI Warns Deep Fakes Are Interviewing For Jobs – The FBI warns that “deepfakes,” technologies that make artificial images indistinguishable from a real recording, are being used in a new way. Deepfakes are being used to apply for jobs. “The remote work or work-from-home positions identified in these reports include information technology and computer programming, database, and software-related job functions,” said an FBI statement warning of the danger. Jobs offering access to the private information of customers are especially lucrative.
FOR YOUR CONSIDERATION
When you start riding motorcycles, it changes everything, including the way you drive cars. You start noticing motorcycles on the road, learn how to anticipate threats and plan responses, and internalize patterns you weren’t even aware of before.The same holds true for trading. Learn the terminology, formulate a plan, paper trade, and use only small positions on trade types you can manage properly.
Your Options Coach Chris Hood is here to get you started. It may seem like a slow beginning, but you’ll be roaring down the highway in no time.
The information in this email is intended for informational purposes only and does not guarantee specific results as there is a high degree of risk involved with trading. Also, our traders are real traders and may have financial interests in the companies discussed. Please see our Terms and Conditions for more information