Bitcoin is down about 5% today, GBTC about the same and MSTR a little more, down almost 10%. The lesson is not to panic out, but to panic in. Below is our TSLA trade from a year ago, where the stock ran up 194% from our initial entry, gave it all back, then went on to an 1100% gain over the next 9 months. Those that bought the initial 1 year TSLA calls still made 10,000% in the end, regardless of retracements along the way. Those trading TSLA shorter-term used that retracement to enter new Long positions that paid off almost immediately, than again on just about every major retracement along the way. We stuck with the trade because we (mostly me) did our homework and didn't let the vagaries of the trading marketplace get in our way. In fact, our whole trading system is based upon buying retracements after they end, and that applies to all time frames. This nosebleed dive in BTC will end and the longer term trend will then take over and start pushing prices higher, BTC, GBTC and MSTR. The old high of $43,000 will be taken out and knowing this, we can dig in and await the all clear pattern for new investment capital in one or all three of the above instruments. As for the stock market, let's keep our eyes on Zoom (ZM) as a close below $365 (currently $380) will generate a Sell Signal. ZM is one of the beneficiaries of the lockdowns over the past year when it ran from $70 to $588 in October. A return trip to under $100 may be in the cards. Sell Signal Pending.
