Market Update The Dow is catching up with the Russell (IWM) and Nasdaq (QQQ) indexes in downward momentum. This morning's headlines (Saturday) are infected with Covid, with the major symptom being that the new Omicron variant is now out-of-control around the world. Science or not, the psychology is beginning to mirror that of Feb-Mar 2020 that ushered in a 35% market decline in just six weeks. TSLA fell from a split adjusted $194 to $70 during this market decline. Less than a year later it hit $900. Hold index puts and be ready should another 13X opportunity in TSLA come our way. BITO - Trading Options On Bitcoin BITO is the symbol for the ProShares Bitcoin Strategy ETF. It started trading on October 19th @ $40.88, when Bitcoin was at about $65,000. With Bitcoin now trading at around $47,000, BITO is at $29. The usefulness of BITO for us is that BITO trades options, something we could not do with either Bitcoin or GBTC. That opens the door for our trend models with both short and intermediate term price trends in Bitcoin. As is evident in the six-month chart of Bitcoin below, our Buy/Sell Bitcoin Trend Model has been catching the larger price trends in both directions. Not shown are two Buy Signals that took Bitcoin from $11,000 to $30,000 (Oct 2020) and $39,000 to $65,000 (Feb 2021), respectively. Bitcoin looks custom made for this kind of trading strategy, i.e., elongated alternating trends both higher and lower. I'm adding Bitcoin/BITO as an active trading vehicle in both short and intermediate term trends. Trends for both time frames are currently Short. Let's wait for a friendlier risk:reward opportunity for our first BITO option trade, either a Reversal Buy Signal, or a Repeat Sell Signal, whichever comes first. Bitcoin (Daily) Intermediate Term Trend Model
