U. K. REGULATOR WARNING — ‘LOSE ALL THEIR MONEY’ DAMPENS MOMO SENTIMENT

‘Lose All Their Money’

Please click here for a  chart of Bitcoin futures (BRR_F).

Note the following:

  • We were sharing with you late last week that sentiment had reached the beginning of the extreme zone.  Our long time subscribers already know that when sentiment reaches extreme positive it is a sell signal.  However, as a note of caution, the signal is not precise in its timing and sentiment can move farther into the extreme zone.
  • The other important point about sentiment is that it is a sell signal only if it stays in the extreme zone for a while.  Historically, often the sentiment moves back from extreme to very positive zone. Such a move gives a new life to the momo crowd.
  • A common reason for the sentiment to move back from the extreme zone is that a regulator expresses concern.
  • Bitcoin has been emblematic of the speculative fever that has gripped the momo crowd.
  • The U. K. Financial Conduct Authority has issued a warning regarding Bitcoin, “If consumers invest in these types of products, they should be prepared to lose all of their money.”
  • The chart shows the impact of the statement.
  • The chart shows that Bitcoin lost as much as 21% of its value in a very short time.
  • The chart shows that the VUD indicator has been mostly orange indicating net supply of Bitcoin. The VUD indicator is the most sensitive measure of net supply demand in real time. The orange represents net supply and the green represents net demand.
  • The negative sentiment from Bitcoin has crossed over to several momo stocks.  The reason is that a large number of investors who have lately been buying Bitcoin are the same ones who are buying frothy momo stocks.
  • The best way to understand the move in Bitcoin today is to think of a doctor giving Tylenol to reduce a fever.  A short time afterward, Tylenol wears off and the fever may spike back if there is no other treatment for fever.
  • Here we have the Congress, the President-Elect and the Fed doing everything they can to spike the fever.

Momo Crowd And Smart Money In Stocks

The momo crowd is 🔒 (To see the locked content, please take a 30 day free trial) stocks in the early trade. Smart money is 🔒.

Gold

The momo crowd is 🔒 gold in the early trade. Smart money is 🔒.

For longer-term, please see gold and silver ratings.

Oil

The momo crowd is 🔒 oil in the early trade. Smart money is 🔒.

For longer-term, please see oil ratings.

Markets

Our very, very short-term early stock market indicator is 🔒.  This indicator, with a great track record, is popular among long term investors to stay in tune with the market and among short term traders to independently undertake quick trades.

Interest rates are ticking up and bonds are ticking down.

The dollar is stronger.

Trading futures is not recommended for most investors. The purpose of providing this information is to give an indication of the premarket activity that usually guides the activity when the market opens.

Gold futures are at $1835, silver futures are at $24.87, and oil futures are $51.60.

S&P 500 futures resistance levels are 3800, 3860 and 4000: support levels are 3630, 3600 and 3520.

DJIA futures are down 310 points.

Protection Bands and What To Do Now?

It is important for investors to look ahead and not in the rearview mirror.

Consider continuing to hold existing positions. Based on individual risk preference, on dips, consider holding 🔒 in cash or treasury bills or short-term bond funds or allocated to short-term tactical trades and short to medium-term hedges of 🔒 and short term hedges of 🔒. This is a good way to protect yourself and participate in the upside at the same time.

You can determine your protection bands by adding cash to hedges.  The high band of the protection is appropriate for those who are older or conservative. The low band of the protection is appropriate for those who are younger or aggressive.  If you do not hedge, total cash level should be more than stated above but significantly less than cash plus hedges.

It is worth reminding that you cannot take advantage of new upcoming opportunities if you are not holding enough cash.  When adjusting hedge levels, consider adjusting partial stop quantities for stock positions (non ETF); consider using wider stops on remaining quantities and also allowing more room for high beta stocks.  High beta stocks are the ones that move more than the market.

This post was just published on ZYX Buy Change Alert.

 

New Year Sale

Join your fellow investors who are taking advantage of the New Year sale in large numbers. Please click on the link below for more details.

CAPTURE IMMENSE GAINS SUCH AS 2865% — NEW YEAR SALE — DOUBLE BONUS: ACT NOW TO GET FREE TRIALS

 

Markets can generate substantial wealth for knowledgeable investors. NOW YOU TOO CAN ALSO SPECTACULARLY SUCCEED AT MEETING YOUR GOALS WITH THE HELP OF THE ARORA REPORT. You are receiving less than 2% of the content from our paid services. …TO RECEIVE REMAINING 98% INCLUDING MANY ATTRACTIVE INVESTMENT OPPORTUNITIES, TAKE A FREE
TRIAL TO PAID SERVICES.

Please click here to take advantage of a FREE 30 day trial.

FREE: SUBSCRIBE TO ‘GENERATE WEALTH’ NEWSLETTER

Related Posts

THIS SIMPLE STRATEGY MADE 4117% PROFIT IN 2021 – TIME TO BECOME VERY CAUTIOUS

To gain an edge, this is what you need to know today. 4117% Return Please click here for a chart of S&P ...

DON’T BE MISLED BY FALSE REASONS FOR BITCOIN CRASH

  Money Laundering Crackdown Please click here for a chart of bitcoin crash (BTC). Note the following: Going into the weekend, sentiment on ...

WEEKLY STOCK MARKET DIGEST: JAPANESE BUYING MAY BE BEHIND THE MYSTERY THAT DROVE TECH STOCKS HIGHER

Weekly Digest from The Arora Report is popular among serious investors and money managers because they have found studying insights ...

NEW BUY ZONES ON 44 STOCKS — SEMICONDUCTORS, ELECTRIC CARS, 5G, SOLAR, SPORTS BETTING AND MORE

Buy zones are very powerful.  This powerful technique is used by billionaires and hedge funds.  When a stock dips into ...

A SLIGHT HESITATION AS NASDAQ AT RESISTANCE

To gain an edge, this is what you need to know today. Hesitation At Resistance Please click here for a chart of Nasdaq 100 ...

BUY ZONES ON 25 ETFS THAT ALL STOCK MARKET INVESTORS SHOULD CONSIDER

Did you make 133% return with one simple ETF – internet ETF? Have you been profiting from the power of buy ...

WEEKLY STOCK MARKET DIGEST: THE MOST IMPORTANT KEY TO THE STOCK MARKET DIRECTION

Weekly Digest from The Arora Report is popular among serious investors and money managers because they have found studying insights ...

BLOWOUT ISM ADDS AIR TO THE STOCK MARKET BUBBLE

To gain an edge, this is what you need to know now. Prudent investors and money managers who want to gain an ...

HIRING GOES GANGBUSTERS – STOCK MARKET BREAKS OUT

To gain an edge, this is what you need to know today. Stock Market Breaks Out Please click here for a chart ...

WEEKLY STOCK MARKET DIGEST: LESSONS FROM ONE OF THE WORLD’S BIGGEST HIDDEN FORTUNES LOST IN FIVE DAYS

Weekly Digest from The Arora Report is popular among serious investors and money managers because they have found studying insights ...

WEEKLY STOCK MARKET DIGEST: INVESTORS GET READY FOR $3 TRILLION INFRASTRUCTURE PLAN

Weekly Digest from The Arora Report is popular among serious investors and money managers because they have found studying insights ...

BIDEN PLAN TO BORROW AND SPEND MORE LIFTS THE MARKET

To gain an edge, this is what you need to know now. Biden wants to borrow over $3 trillion to spend ...

WEEKLY STOCK MARKET DIGEST: POWELL HAS A PROBLEM – SMART MONEY IN THE STOCK MARKET DOES NOT BELIEVE HIM

  Weekly Digest from The Arora Report is popular among serious investors and money managers because they have found studying insights ...

INVESTORS PAY ATTENTION: FED INTRANSIGENT TO INFLATE THE STOCK MARKET BUBBLE FURTHER

To gain an edge, this is what you need to know now. Fed Intransigent Please click here for a chart of  Nasdaq 100 ...

WEEKLY STOCK MARKET DIGEST: PAY ATTENTION TO CLASSIC HEAD AND SHOULDERS PATTERN IN PROGRESS

Weekly Digest from The Arora Report is popular among serious investors and money managers because they have found studying insights ...

REDUCE CASH – PRUDENT INVESTORS PAY ATTENTION TO THE BIGGEST DIVERGENCE IN 28 YEARS

To gain an edge, this is what you need to know today. Reduce Cash The Arora Report gave a sell signal one ...

KEY TO THE STOCK MARKET IS BONDS – BETS AGAINST BONDS RISE

Key To The Stock Market Please click here for a chart of 7-10 year Treasury Bond ETF (IEF). Note the following: The chart is ...

WEEKLY STOCK MARKET DIGEST: HEAD AND SHOULDERS PATTERN FORMED – BIDEN AND POWELL GONE TOO FAR

Weekly Digest from The Arora Report is popular among serious investors and money managers because they have found studying insights ...

WOULD YOU HAVE LIKED A SELL SIGNAL ONE DAY BEFORE THE STOCK MARKET TOPPED?

Would you have liked a sell signal one day before the market topped?  Those with portfolios heavy in momentum stocks ...

PAY ATTENTION: TOP REGULATOR ‘VERY WORRIED’ ABOUT THE STOCK MARKET BUBBLE

To gain an edge, this is what you need to know today. Very Worried Please click here for a chart of  S&P ...

Follow

Get every new post delivered to your Inbox

Join other followers