Copper prices hit 3 year highs. China bans Initial Coin Offerings and crypto markets collapse. Reversal hunting season is back.
Sold
BHP Billiton ADR (BHP): Closed 1 contract of a January 2018 32.5/42.5 Bull Call Spread for a 136% profit since August 2016. Price has been sitting comfortably above the sold call strike price for maximum possible profit. Not happy with trade execution as the price was slipped by more than 5% from my bid. As it happens only closed 1 contract out of the 2 I have. BHP is a large copper and iron ore producer and is benefitting from strong runs in prices of copper and iron ore. I remain exposed through shares I hold in BHP.
Shorts
Japanese Government 10 Year Bonds (JGB): Last time North Korea sent its missile over Japan, JGB prices jumped as the safe haven money flowed. This weekend they test a hydrogen bomb (according to reports) and price stayed topped out.
Been waiting patiently for price to hit pending orders below the recent run up in prices. Not a smart trade as next expiry futures become available on September 10. Would have been better waiting for those to list.
Cryptocurency
China takes action to ban all Initial Coin Offerings (ICOs) in its jurisdiction. This had a major impact on all crypto markets.
This does not all make sense as established coins are not affected other than Ethereum - as this is often the platform used to run ICO's. I am not surprised by the China action - it was just a question of who went first. Here is what I tweeted.
https://twitter.com/profits_bitcoin/status/904844375762415616
- profits_bitcoin
A complete Chinese ban now appears to be priced into the market as the People’s Bank of China’s latest statement calls for immediate “ceasing” of all digital token activities under its jurisdiction. South Korea had followed with stark warnings about unauthorized funds gathering, while Hong Kong appeared to take an approach more like the US Securities and Exchanges Commission, reporting today that tokens may or may not constitute securities
https://www.coindesk.com/heading-ether-prices-consolidate-chinas-ico-crackdown/
Once the panic is over markets will go back to valuing the core propositions against a background of increased regulation.
Bitcoin (BTCUSD): I had been hoping for Bitcoin price to hold support at $4,300. On a 1 hour chart, you can see the low test bar with the long green tail make a tidy reversal and then run out of steam. With the new bar testing that $4300 level again I put in a pending order above the high - the line labelled GTC. That trade was triggered.
Price promptly went further down and tested $4,000. With no stop losses in place this feels like a scary way to trade [Do not copy this at home because it is high risk strategy]. I did consider adding a new trade on the 4 hour chart when price made an inside bar. As I have 4 half trades open (equivalent of 20 BTC), I chose not to. On the new trade I have put in a target just below the recent high at $4,595 (labeled Stop/Limit)
Ethereum (ETHUSD): Ethereum is affeceted more strongly by the ICO action because many of the ICO's use its blockchain and smart contract system to launch. I had a pending order sitting at $315 - looking for price to hold the reversal above $280. That trade did trigger and I added one more when I saw the confirmation of the reversal (the two dots on the lower right hand corner) - I now have 3 trades open (equivalent of 30 Ether)
Currency Trades
Forex Robot did not close trades and is trading at a negative equity level of 9.5% (lower than prior day's 10.2%).
Cautions: This is not financial advice. You need to consider your own financial position and take your own advice before you follow any of my ideas
Images: I own the rights to use and edit the Buy Sell image. News headlines come from Google Search. All other images are created using my various trading and charting platforms. They are all my own work
Tickers: I monitor my portfolios using Yahoo Finance. The ticker symbols used are Yahoo Finance tickers
Bitcoin: If you want a low cost way to enter Bitcoin, you can buy a package for as low as €50 (in Bitcoin) and earn Bitcoin at a rate way better than your bank could offer - think weeks instead of months. http://mymark.mx/USIBitcoin
September 5, 2017