The Red List is a list of threatened and endangered species. That’s not the list we’re talking about today. We’re talking about this one:
That’s the little tab which I click on first thing every morning when I open TradingView. The Red List is the list of highlighted stocks, cryptos, commodities etc which I consider most important to me and which I like to keep a close eye on.
Unlike most of my posts, this one does not come from my pre-planned and dynamic list of “topics I must blog about when I get a chance”. This post was conceived last night when I noticed my Red List starting to get interesting. Today my list is even more interesting.
There is a lot happening in the world of finance/crypto/markets/business at the moment – at least that is what my list tells me. Of course this may just be coincidence, but experience teaches us that markets are linked and that movements in one affect movements in others. At the very least such markets must be susceptible to the Butterfly Effect – which is pretty much inescapable and even governs weather systems and quantum mechanics. For those unfamiliar with the Butterfly Effect:
In chaos theory, the butterfly effect is the sensitive dependence on initial conditions in which a small change in one state of a deterministic nonlinear system can result in large differences in a later state. The term… …is derived from the metaphorical example of the details of a tornado (the exact time of formation, the exact path taken) being influenced by minor perturbations such as the flapping of the wings of a distant butterfly several weeks earlier.~ Wikipedia
So whether there is some relation here or not I can’t say, but it does seem to me as if the markets are “unusually active” – for want of a better term. Let’s see what looks interesting:
Possibly the lest exciting of the lot, it’s still significant that BTC is holding strong above $5000. As my regular readers will know, I believe BTC to be moving between diagonal Fib levels as of February this year (probably far longer if you look at it in hindsight). BTC is consolidating between the 0.786 and 1.0 diagonal Fib levels. The next break upwards could be the one to intermediate resistance at around $5650 or even major resistance at around $6250.
With several support levels beneath it and volume increasing, if BTC drops now there are many safety nets to slow its fall. I’m still expecting to see $6200 soon with a drop back to around $5000 shortly thereafter, as described in this post: https://mentormarket.io/cryptocurrencies/bit-brain/bitcoin-10-april/
My favourite altcoin had a torrid 2018. 2019 has been far kinder, though NEO has been in decline since 6 April. This seems to have just turned around with NEO breaking out of the fall and making good gains on BTC in the past 24 hours. Possibly a good time to trade a little BTC for NEO for those who may be interested in such a trade.
The metallic version of BTC has been in a small local consolidating triangle, testing the support level four times in 2019. I was expecting another possible upwards bounce (as the arrows on my chart indicate), but it looks like Gold may have chosen to drop in price instead.
Local resistance is broken and Gold could now plunge towards long-term support at around $1215. If this is confirmed then I would consider it an excellent buy opportunity of an asset which I am very bullish on.
I wrote about Silver in detail on Monday in “Silver – breaking local support”. Silver is still walking the tightrope between breaking through the support level and bouncing up off it. If Gold confirms the break of its support level, which does look likely, then I expect Silver to follow suit. This would make this undervalued metal even more undervalued and another fantastic buy. On the other hand this may be a chance for Silver to avoid breaking downwards and to start correcting the unsustainable Gold bias of the Gold/Silver ratio.
Speaking of correcting unsustainable ratios, it looks as if Platinum may be preparing to make its move on arch-rival Palladium. Palladium usurped Platinum’s position some years back and replaced it in many applications, most notably as a catalyst in exhaust systems. I believe that this situation may be about to flip due to:
- The unusually high price of Palladium
- The unusually low price of Platinum
- The relative ease of switching between using Palladium and Platinum
- The Gold/Platinum ratio
- Platinum breaking long-term resistance on the chart
Platinum has successfully poked its head above resistance. In order to consolidate, it now needs to either rise further or at least to maintain that level while the converging triangle tapers away beneath it. Yet another good investment, as most recently written about here: https://mentormarket.io/cryptocurrencies/bit-brain/platinum-crossing-the-bar/
S&P 500 and DJI
Since the Dow is behaving similarly to the S&P, I’m only showing the one chart (S&P). For a long time I expected that these indices may stall as they encountered resistance. They paused, but the markets have pushed on through. International markets have generally followed in their wake, with most major indices having similar looking charts. The S&P is now at a 2019 ATH and is already drawing very near to its all time ATH (why does “all time all time high” sound wrong?) set last year, this despite the massive market drop in Q4 of 2018. I don’t know whether to be impressed or whether to be afraid – so I’ll go with a little of both. With such a bullish fight back to the top, these indices have the ability to smash their way to new record highs this year. Just how sustainable that will be in the long-term remains to be seen, and is a major factor in me shifting my (puny) wealth into crypto and precious metals.
The NASDAQ remains the black sheep of major US market indices in 2019. It crashed downwards and has struggled to recover. I still have a possible inverted head-and-shoulders pattern forming on the NASDAQ chart, which is interesting as that is a reversal pattern. What that may mean to the markets in general could prove to be significant. Could this mean that we should’t be bullish about major stock markets in 2019? That would certainly validate my position on moving into precious metals and crypto.
BNBUSD is not a trading pair from my Red List, as you know I always track altcoin value in BTC. BUT $20 is an important psychological level and can’t be ignored. This is especially true since Binance is now so supportive of fiat buying: first by launching Binance Jersey and even more recently by enabling credit card transactions on their main platform.
Binance Coin has broken $20 before, but only during the height of the previous bull market and not by a large margin. Of course back then its value in BTC was significantly smaller, so I see this as a new BNB ATH.
No doubt this push over $20 was facilitated by this news:
That can only be the official launch of the Binance Chain!
If you’re a BNB holder – rejoice! (What did I say about BNB yesterday?)
That’s all I wanted to show you – a bit of interesting activity across my Red List. Make of it what you will.
Remember to cross reference my articles and to revisit older ones, I normally leave link-backs, but you should look around at what I may have missed and at what else is available. Also keep a close eye on My Twitter Feed: if you followed that carefully then you would have know much of this in advance. for example:
Yours in crypto
All charts made by Bit Brain with TradingView
“The secret to success: find out where people are going and get there first”
~ Mark Twain
“By this means (fractional reserve banking) government may secretly and unobserved, confiscate the wealth of the people, and not one man in a million will detect the theft.”
~ John Maynard Keynes