Below is a chart and brief excerpt from today's Early Look written by Hedgeye CEO Keith McCullough.
On Bitcoin, the combination of:
A) A bearish @Hedgeye TRADE breakdown (what was $10,797 TRADE support is now resistance) and
Makes it an easy A/B Tested decision to sell some, then sell all. Other than Hedgeye Equity, my Real Estate, Wine, and Venture Capital investments, I am not a buy-and-HODLer. I am a Risk Manager of liquidity who avoids epic drawdowns.
Like Tech Stocks, the only Quad that has a high and rising probability of crashing #Bitcoin’s price = #Quad4.
If that empirical fact or my decision to de-gross and/or sell affects you emotionally, you should really consider why that’s happening to you. When I sell something for a big gain, the only feeling I have is that I am going to pay taxes.
If Gold and Bitcoin continue to correct in price (they’re already in motion on that since I made my sales), there are no rules in my Full Cycle Investing accounts that say I can’t buy them back.
But, as a matter of risk management #process, I won’t buy either back on some static “valuation” model. I’ll buy them when my dynamic rate-of-change model signals to do so in the right Quad.