Today is Thursday, March, 29th, 2018 which is the last trading day of the quarter for U.S. stocks. Today is an up day for the S&P 500, but it is down about three percent for the quarter. Crypto currency are down much more than that in the same time frame. There was a time in February in which stocks and cryptos looked to be trading with a high correlation. That correlation has been lost over the past several weeks. Hopefully this breaks any correlation there was, and allows cryptos to trade as a separate risk asset class.
The current charts of the biggest crypto currencies do NOT look good at all. Since early January they have made a series of lower highs and lower lows. In Ethereum (ETH) this $400 level has not been seen since November of last year. We feel that if ETH holds this $400 level for the next several days, then you can put new money to work here with a stop just below $400.
This drop in Ethereum from $1,400 to $400 has created many great trading opportunities. These opportunities will remain as long as the volatility remains at this extremely high level. We recommend actively trading and using these ten-to-twenty percent swings to add to your total coin count. even is you believe, like we do, that ETH will trade back to $1,400 this year, that is no reason to stop trading.
If you had purchased two coins when ETH was at $900, it could take you months to get back to even. However, if you actively traded ETH you could have easily turned those two coins into 5 coins. Making your break even point much lower, and realizing a sizable profit when ETH regains that $900 level.
For tips and tricks on trading feel free to contact us.