When looking at the possibilities to trade Cryptocurrencies the market is very small, besides of the classical BTC exchanges there are not that many alternatives. In this thread I want to show you a nice possibility to trade Cryptocurrencies.

A good platform for trading Cryptocoins need to fulfill some basic requirements, in my opinion the most important of these are the following:

• Reliable plattform
• Liquidity of products
• Availability of the trading plattform
• acceptable costs/ spreads

Lately, conventional BTC exchanges like Kraken.com got flooded with new users and the platform is not really good enough for trading in my opinion. Also BTC is currently not traded on “real” exchanges but this will soon be the case as the first BTC Future will hit the market in mid- December.

Nevertheless, currently the best way to trade Cryptocurrencies is by the use of CFDs(Contracts for difference). What I personally found as one of the best solutions is the broker PLUS500.*

Plus500 is one of the leading CFD platforms and offers currently a variety of 10 different Cryptocurrencies for trading. These are the following which can be seen in the box below:

For my trading I will use the PLUS500.* platform. Currently Im starting to getting familiar in the platform and I can say that it’s an easy to use and intuitive platform. It allows you to practive trading with PLUS500s unlimited demo account before trading your real money account.

If you are interested in the platform you can check it out and register through the banner below:

 

 

Please consider that by the use of CFDs your capital is at risk.

 

For more information on projects in regards of Cryptocurrencies – please check out our main page:

https://www.cryptouniverse.at

 

 

*Plus500UK Ltd is authorised and regulated by the Financial Conduct Authority (FRN 509909).

*Affiliate links

Risk Warning:

Please consider that by the use of CFDs your capital is at risk.

With this post, I want to provide a trade analysis of a very profitable trade which I closed recently in the Alibaba stock.

Just some days before the Earnings(17th August) of $BABA, I noticed a strange open interest(OI) cluster in the 200USD call options with expiry on 25.08.2017. After further checking the OI’s on other strikes my assumption was that this cluster was based on naked in the money short puts with a delta of 1 – this means the profit loss scheme is pretty much the same as with a long stock engagement but it is possible to reduce margin by the use of such a strategy. The mentioned cluster was consisting of ~3100 options which is today already closed. It could be assumed that an insider was involved due to the positive earnings but nobody knows and it certainly does not influence our decisions for such a speculation. When big money moves we have to watch out for it.

Due to positive earnings and this OI cluster I was able to make quite a nice profit in just a few days. I chose to trade out of the money short puts and some long stocks secured with a long put. I was able to enter the $BABA stock at a price of 159,5 USD – today it reached nearly 178 USD which is a pretty nice move in such a short time. After this trades and positive earnings I was able to make further profits with some more OTM short puts.

In general, I have to say that Alibaba could hold their ground pretty good in comparison to Amazon (AMZN) which is down a few percents from their top.

I will definable increase my stock scanning cycle in the future in order to find other nice opportunities supported by positive OI’s.

cheers

Tom

Today I want to write about an interesting development in the WFT – Weatherford international stock. WFT is a typical Oil service stock and due to the increasingly harder environment for Oil stocks in the last year, also WFT fights with a declining stock price which is probably mostly owed to a declining Oil pricing, smaller project volumes in this market and therefore lower earnings.

If we take a look at the daily chart of WFT we can clearly see a downtrend that seems to break out due to the strong moves of the last 3 trading days:

 

 

 

 

 

 

 

 

 

 

 

 

Recently I noticed that in the JUL 21 expiring options the Open interest  (OI) is at a very high level compared to other expirations. Also in the August 18th expiry, we have higher OIs but not even half the amount which we have in the nearest expiration. Another interesting factor is that this volume only seems to exist on the Call side of the options, see a Screenshot of the Options chain below:

 

 

 

 

 

 

 

 

Such high OI could be an indication of a developing Trade which mean in this case that the option traders are looking for higher prices until the 21th of JUL.

Possible reasons for this trade development:

• News on WFT Partnership
• possible M & A actions

 

Personally, I invested into WFT directly via stocks and some long options, if you like such or similar posts please let me know so I can bring more of it in the future.

 

cheers

Tom

As discussed on my Facebook page on the 14th of December, the markets are now coming into a correction from a very strong Rallye of all US- indices, therefore we are in an overbought market condition. The seasonal tendency gives us nevertheless an Outlook for further higher market levels. Such corrections can be used for a Reentry into the market!

See below how you can find overbought markets with the Fear and Greed Index, this could also be checked with an RSI indicator but then it requires a chart software:

Comparing all American indices, I noted that the Russel 2000  index and its equivalent the IWM- ETFs are running a bit in front of the market and the correction in the IWM seems to be running/finished already.

Therefore an Investment makes sense with an intermediate goal of 141/142 USD.

See below the chart of the IWM ETF:

This investment can be done with the following ETFs:

• IWM – simple Russel2000 following non-leveraged ETF
• TNA- basically 3x leveraged IWM

cheers and good luck

Tom

 

Some time ago I released a post about a potential investment setup in the EUR/USD on my Facebook site, you can find the setup below:

 

 

 

 

 

 

 

 

 

 

 

 

As you can clearly see in the chart, we are at a 10year+ low of the EUR/USD FX-pair which is shown in the ETF FXE. The FX level would be around the mark of 1,06.

See below the long-term chart of the EUR/USD with the mentioned resistance zone:

Picture courtesy: Facebooktrader/ René Rodriguez‎

As this setup has a lot of upside potential with a target of 1,12 – 1,15 this is a very good investment opportunity.

This trade could be done with the following products:

• direct FX investment long EUR/USD
• ETF – URR
• ETF – FXE

cheers
Tom

Just one hour ago the news came out that Mr. Trump will probably be the winner of this presidential election. Besides of political implications due to this facts, this is a surprise for the stock market participants.

After the FBI- news announcement on Monday morning which pushed Ms. Clinton into a very good position for the vote, the stock markets already started to race some points up and there was generally a positive climate.but given due to this unexpected outgoing of the vote volatility is coming back again and the markets are opening with big Gaps.

Given due to this unexpected outgoing of the presidential election, volatility is coming back again and the markets are opening with big Gaps.

In my opinion, this can be compared with the BREXIT decision in Europe,after the BREXIT decision which was also unexpected like the Trump win, the markets were falling very deep. The german industrial index #DAX lost 1000points overnight whereas the  SP500 #SPX only lost 100points in two days.

Only  two months after the Brexit the #DAX is more then 1500points higher and found its bottom on the day after the Brexit, also the #SPX was only 2months later more than 180points higher. Due to the reason that I see these events as very similar to each other, I would propose to start buying at least index ETFs on both of these indices. Not only #SPX and the german index can be bought, all indices are mostly running at a similar level this gives us also a chance in the #QQQ and the #DOW.

Long ETFs:

• SP500 —–> SPXL -ETF (3x leveraged)
• NASDAQ–> TQQQ (3x leveraged)
• DAX30 —-> GY3L (3x leveraged)

EDIT:

opening price 09.11.2016 -09:00 -MEZ +1

DAX; 10173

SP500: 2082

NASDAQ: 4760

After market-opening make sure to wait for plateau building, then a mid to long term entry in indices or direct stock investments makes definitely sense.

Tom

After a rather longer period without correction, the SP500 confirmed his strong upward Trend with a correction back to the MA21 as resistance. Also, all other important indexes completed a correction.

This provides a good chance for a reentry into a long index setup. As visible in the below chart the low of the correction is at a level of 2145 points.

As I prefer to trade the index via leveraged ETFs, see below the chart of the 3x SP500 ETF called SPXL with the low of the correction at 93,8 points.

The correction of the indexes was confirmed by a strong down-movement of the volatility ETF – VIX and also a bouncing of the NYAD Index up to new highs.

cheers

Tom

As of today, the closing price of the #SPX index has hit again its All-time high area of around 2120 -2135 points. As can be seen in the screenshot below this area has acted as resistance zone since 2015 and the market touched it multiple times so far without breaking it:

Today’s rally of the #SPX was definitely supported by the very strong NFP (non-farming payrolls) figures but also the NYAD Index shows a lot of strength and jumps from one all-time-high to another. The NYAD or also called Advanced-decline-line index is used as an indicator of future movements, historical evaluation also shows in times of crisis it also gives good indication when the market starts to turn around, eg. in 2008 the NYAD was already declining for weeks whereas the #SPX was still rising –> this was a clear indicator of volatile times ahead. See below current situation in the NYAD.

Various other signs also give us an indication of rising markets and declining volatility, the VIX index which is a measure of the volatility of the SPX also show a very low-level today and a strong decline.

###################

Conclusion:

###################

After the Brexit crisis, American markets have regained their strength very fast, European markets are mostly still trading below their moving averages. SPX is clearly the strongest market at the moment. Also, Dow Jones Transport is acting still below moving averages and in general weak.

In the weekly charts the #SPX hast triggered a buying signal around mid-June,therefore I already bought in with a starting position.

As soon as #SPX is overcoming its all-time highs and also has a first closing price above it, the strong resistance area can act as a strong support line and #SPX has no resistances ahead and could push strongly north.

###############################

How to take advantage of such a Rally?

###############################

Such a situation brings rising stock prices, rising index prices and lower volatility in general, therefore I will focus on the following investments/trades:

• looking for strong stocks in the SP500 index to trade
• looking to buy leveraged Index ETF on the SP500 (eg. SPXL)
• looking to buy inverse volatility (see previous posts about volatility trading)

I hope this gives you some ideas how to handle and make good profit from a strong Summer-Rally.

cheers

Tom

In my latest post about an investment in the ETN SVXY, I talked about the opportunities and risks of volatility investments. This was nearly 2 month ago, since then the volatility was further declining and more profits were possible. What I think is important is to give you some idea how to find such trades and how to secure profits and stay in the winning trade.

How can you find such chances?

I wise man once said “when blood is running in the streets it’s time to invest”, and as of today, this quote is still true. Every global event that influences the markets e.g. the BREXIT vote this week on 23 th of June is such an event. Such events sometimes or very often lead to very rapid movements in the markets which brought the volatility to rise very fast.

An example of this was last week on the 14th of June the volatility ETN – VXX rose up to a level of 17 in a very short timeframe, therefore there was an opportunity to go in first very small (!)short position or to be on the short Call options, only 1 week later I was able to realize a nice win out of this trade. See also the chart below.

Is it even possible to stay in the trade and secure the winnings?

To come back to the mid to long term opportunity in the SVXY volatility ETN which presented in April. Following the chart one can see a very nice and clear upward trend (dow theory) therefore, it was possible to adjust the Stop-loss of this position accordingly up to at least of a level of 51 USD, since the 13th of June the upward trend broke. As you can see the exit of one position can be used as the entry of another position as on the next day I entered my above-mentioned trade in the VXX ETN.

 

I hope this post was interesting for you and I could give you a brief info on how to trade volatility products in a nutshell.

For more info’s just leave a comment.

Tom