Since many of you follow the news, I want to show how I am looking to adjust my wallet going forward based on the China Syndrome. Now I don't trade on the news, but the news on China showed us something very interesting. Yes this should have hit your radar yesterday when we were tracking several coins like NEO, PAY and OMG. All three were in consolidation phases after the selloff, but then something interesting happened. The market spoke!!! Notice of all the coins above four out of the six have since recovered and are now trending bullish again. Why is this important? Well first we realize that selling our holdings on news can sometimes be painful. But secondly this wasn't just any news, it was huge news as most Countries are starting to look at how to regulate cryptos. As I stated before, I down played the news, and even wrote that China wants to be a LEADER of Technology not a follower. We hear often how countries are trying to handle this new change in technology with the SEC making statements, Russia, Europe and many others. But leaders do not talk they take action. China came out hard and swift which would be expected by, well, a leader! This sent shock waves through the market and many weak hands sold the news not understanding how this was just the first step in sorting out future winners. YES the thoroughbreds we want to own long term.
Well after tracking several coins yesterday all which were pretty much consolidating in the same pattern I was looking for a break out. Finally one did. OMG! Now of course BTC ETH and LTC (the true thoroughbreds that everyone is familiar with) turned bullish as well and they are #1-2-3 on our list. But what does this tell you about the others? OMG broke to the upside and held support while some we thought were powerhouses, like NEO and PAY, seemed to be sitting in their stalls.
This tells us something much more important then ok which one is next. It tells us where big money sees future winners.
If you have ever been to a Horse auction looking to buy a race horse, you go around from horse to horse, look at structure, muscle, temperament and lineage. They all look very similar at first glance, and as we were small time, did not have the money to hire the best trainers and horse experts to look them over, so we relied on the basics. So you pick a couple that you want to bid on and get ready for the auction. All of a sudden one of the horses starts getting a slew of bidders out of no where, when other horses were going for market average, slightly above or below. What did those big money horse owners see that I didn't. Yes I had it on my radar, but I thought there are other horses here that are cheaper and have a chance to be great, why spend all my money on that one? Two years later where was that freakin horse, that's right the Kentucky Derby! The same thing happened last night. The smart money came in and started buying future winners. These are the thoroughbreds we need to invest in. The chart does not lie! PAY and NEO are still getting going nowhere, and are testing the lower channel. What's this tell us. These are not thoroughbreds! These are long shots. I want to own what the smart money is buying, and the market has spoken. Though I know I am going to get a lot of flack on this, I'm thinking of looking at NEO and PAY to see if they belong in my wallet.
Yes in horse racing you hear once in a blue moon, "that guy bought that horse for $50,000" and it is a winner winner chicken dinner! But those are the exceptions and not the norm. This news event is positive news for cryptos, giving them validity which will allow larger players in. This event played right into Big money, who took the time to pick specific thoroughbreds that have the best chance of performing. I'm listening to what the market tells me not the News. And it is telling my once again, to look carefully, at "WHATS IN MY WALLET"
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Think, why year after year do you see the same owners at Churchill downs?
Thank you for another great post. What do you think of IOTA?
goldbug1
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@Aitoyko, I posted on IOTA a few days ago, i'll check to see if there are any updates.
SafeGamble
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Well, the "leader" in your comment is a government with close ties to NEO which is tacitly "approved" to operate. The fact that there are regulations in place are good news. What people also seem to forget is that NEO is not a Chinese ICO platform, it merely holds a major advantage in China. It still provides better tech and more flexibility than Ethereum for any ICO out there. Of course, when people think NEO they think China, so it's no wonder that this sell-off is taking place. If one says he has an investment in NEO and then sells off out of FUD... one never did see NEO as an investment.
goldbug1
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@SafeGamble, Great information Safe! I thought the same but it bewildered me why it didn't breakout, and I got 3 text messages on my phone similar to what you said!! This is the purpose of the blog, to share ideas and knowledge!
SafeGamble
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@goldbug1, I don't think it will breakout before the FUD fades out, perhaps after Da Hongfei, the main guy at NEO, speaks out in a few days. At the moment, I think the price action is pretty much rising in falling according to Bitcoin's price swings, but to be fair I've only followed the price move for the last day or two, no serious look at the charts.
Supercell
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@SafeGamble, I guess the difference between Neo and OMG is that OMG are out there doing real business deals with major companies like McDonalds, people can see they have a tangible product that companies, big companies want, as for Neo, they seem primarily so far to be an ICO platform that (was) going to be big in China?, I can't see any reason to buy into Neo again at least for now, back to $5 in the coming months wouldnt surprise.
Events like Segwit in August and the last few days really do shake the trees, its quite interesting to see what recovers and how fact to try to judge true worth.
goldbug1
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@Supercell, BINGO!!! just posted on another one I like and have added GEO!!!!
SafeGamble
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@Supercell, I don't think Segwit activation had any influence at all on NEO apart from the fact that Bitcoin affects the market as a whole. The NEO product is tangible and there are ICOs, such as Red Pulse, developed under the platform - another reason for the drop, though. But sure, it is in a downtrend and OMG is a safer investment at the present moment, besides being a massive project. For that reason alone, it's worth the wait. If Bitcoin, the most solid token, was tanking I wouldn't buy it either, I'd wait for the trend inversion. I expect NEO to find support at 33k sat as a worst case scenario, but who knows. ETH lost half its value back in July too and it's only been just over two weeks since the all time high, this is crypto, things move fast and it's a 24/7 market, it could be back to the top at the snap of a finger (read: great news), although it probably will take longer than that. I actually see a turn of events that could place NEO just under three digits by the end of the year. Would I buy NEO now? No, and yet I'm bullish on it.
SafeGamble
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@Supercell, also check this out at 05m48s. NASDAQ channel, interviewee explicitly saying in the context of government: "“We’ve seen China adopt a cryptocurrency called NEO”. pscp.tv/NASDAQ/1rmxPqDvdYqKN?t=15