Futures were down last night, crypto is bouncing around pennants, and the British Pound is crashing.
As markets dip, I’m keeping an eye out for opportunities to dollar cost average into crypto coins and stocks on discount based on my time horizons for each asset.
First let’s look at fiat money:
The US Dollar has been on a rampage.
The British Pound tumbled recently and the DXY has continued its parabolic run:
- This is likely to continue until the Fed shifts gears to QE (quantitative easing).
- What goes up must come down – DXY has been overbought for months. Its bull run is likely to expire soon.
- $SPY hovering in dangerous territory – a break from the June lows could mean volatility to the downside.
- However, RSI is oversold – although pre-market is down, we could see a bounce here.
- This is the lowest AT&T price has been since 2008 – and before that, the dot-com bubble.
- RSI hovering around 30 but there could be more room to the downside. Pre-market is showing that now.
- This could be a massive buying opportunity or the beginning of a waterfall drop in price.
- I’ve been keeping an eye on commodities – specifically copper – and waiting for stock prices to come down to the shaded range shown the chart above
- Pre-market is down heavy and RSI shows plenty more room for price to tumble before it’s oversold.
- “Double Top” formation indicates a major move to the downside is incoming in the next few weeks.
- Downtrend for the last couple months might be coming to a head soon.
- Coins across the crypto market are forming symmetrical triangles (or pennants) and price is getting squeezed.
- Expecting high volatility, especially if the S&P 500 breaks support range.
- If there’s another major dip, I’m looking at a Bitcoin bottom between $14,000 to $16,000