BTI

Setups are sparse

excited about. Overall though, we expect the week ahead to be ‘risk on’. At least for the developed world. South African markets might be facing its own headwinds and continued currency fallout as a result of the cabinet reshuffle last week. Setups are sparse, so play defense and don’t try to force trades that are not there.

Buy the dip

The second half of last week got really wild, really fast. Given the fact that hardly anything has changed – in the sense that there are no interest rate hikes on the table for at least another year and a half, and that the FED will continue to buy $120bn worth of bonds every month – we think that the market might have had a bit of a strong ‘knee-jerk’ reaction to the FOMC minutes. Thus, we say buy the dip. As long as the free money keeps flowing, it will be difficult for the market to sustain downside.

The trend is your friend

It’s an age old saying in the market, and for good reason. The trend is your friend. Often we try to fight it and mostly, it wins the day. Markets are currently trending higher, and thus our plan is to find opportunities to get onboard with the trend and allow it to make the returns for us.

Can’t stop a good thing

Well then, that’ll teach us to think that markets can actually come down from time time! Jokes aside, the bearish setups from last week have all be nullified and a fresh set of breakouts have taken place. Guess when it comes to equity market rallies, you really can’t stop a good thing. We’re not entirely convinced from a long-term perspective, but for the short-term traders… well, the job is to follow the market. So if you can’t stop a good thing, you might as well join in the fun.

Sell in May and go away

The age old adage of “Sell in May and go away”… Well, it’s May. What now?

Ironically, the bullish breakouts that took place last week, for the most part, seem to be failing. Perhaps “Sell in May and go away” is rooted in more than just seasonality and superstition? Either way, charts are looking a lot less bullish than they did over the last three or so weeks.

Time for a pullback?

Over the last few weeks, markets have remained rather strong in the face of many challenges. Last week we finally got confirmation that more stimulus cheques are in the mail for Americans, although it seems that $1.9 trillion was not enough to help equity indices end the week in the green. Risks remain elevated and volatility is stubbornly not abating, thus we are starting to think that it is time for a pullback. There are a few long indeas in precious metals and commodities, but for the most part, caution is advised.

The blue wave lifts all ships

Very often it’s better to not listen to the news, or the hype of all the mad things happening in the world around us. Most of the time, it’s better to just sit down and focus on the things that we can measure. So to a large extend we try to do that this week, although we must admit the the blue wave in the U.S. is probably the primary driver behind the strength we saw last week. It’s very likely going to be the source of a whole lot more strength in the week ahead.

2021 roadmap for Bitcoin

The week that lies ahead though is usually the ‘Santa rally’ week, so perhaps our caution and maybe even slight bearishness might again be off the mark. Nonetheless there are some good trading setups out there. Furthermore, we thought that this week we would share our 2021 roadmap for Bitcoin. Next year, we think, is going to be wild!

Scroll to Top

Need some help?

Please provide your contact details so that we can be in touch.

Your message is on its way to us!

We will be in touch with you shortly.

In the meantime, check out our other pages with the drop down below:

We really appreciate you reaching out. We will be in touch with you within two business days.