BTC - ARKK Overlay

Here's what I mean when I say Bitcoin is tracking garbage stocks, the overlay is ARKK, Cathie Wood's garbage ETF.

This is an hourly chart, that's how close BTC has been tracking garbage.

BTW, Cathie Wood tends to chase after garbage, whatever you do don't buy her fund. You'd be better off randomly picking stocks yourself. Look at her portfolio before you buy that junk. ARKK is a sinking ship, lol.

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As much as I hate crypto, I'd buy BTC before I buy ARKK. That's how much i think her fund sucks.

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ARKK reversed today along with a bunch of garbage tech stocks, let's see if the correlation holds.

Trade active:

Bought some puts this morning and converted to a strangle on the dip there. As long as this garbage moves, I'll make money.

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I think the way to really play this is to run a strangle EOD every Friday and take advantage of the weekend movement, then direction doesn't matter

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LOL, dropping less than an hour after I convert to a strangle. Oh well, still making money. Just not as much since I'm losing money on the calls, but I'd rather have protection.

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Another thing to look at is ETH, it's recovered the entire drop from the last CPI report.

Funny thing is, I was more bullish on ETH than BTC from a technology standpoint, I guess I should have played it.

As far as cryptos, I think BTC is a dead play, ETH would have yielded 100% profit if you snagged it under $1k.

Trade closed manually:

Closed the strangle this morning for a small profit on the gap down. Figured BTC is gonna head up with the market gapping up. My theory that BTC will track garbage stocks appears to be correct.

Comment:

I think there's more money to be made playing with garbage stocks like FCEL than there is with BTC, not gonna play this for a while.