≈ Rocket Fuel or Tradition? ≈
When it comes to storing value there is the old guard mentality and the new way. The old guard mentality for storing wealth used to come down to holding either bonds or precious metals, specifically gold. Traditionally gold have been very gold at storing wealth and fighting inflation. I once read that the value of a gold coin in the late 1800’s was enough to buy an entire men’s suit including the top hat and tails. With today’s price of gold I would surmise that one could do the same and therefore gold has proven to be a reasonable hedge against inflation. Gold and bonds may not be the only way to store value. Today we have another contender for the title of best value holder and that would be our friend bitcoin. Lots of folks believe that bitcoin is the new way of storing value and even though it doesn’t have the history of gold it maybe the next big thing for fighting inflation.
This is a tale of two different beliefs and also a tale of two different directions. Bitcoin has been rocketing to the moon from a price perspective and our friend gold has been trending in the opposite direction. This comes down to the beliefs of the participants and by looking at the price of the bitcoin futures the belief is strong that bitcoin is the way to go when it comes to storing value. There are those who still believe that gold is the ultimate store for wealth. It remains to be seen which becomes the better of the two but in reality it could be a little of both and ultimately it is up to what you what you believe.
Whichever way one chooses to participate in the fight against inflation it is prudent to pick the appropriate spots to add the position. This means using sounds technical analysis to pick the right levels to enter a position whether that be in gold or bitcoin.
Chart of the Day
Bitcoin Futures (Ticker: /BTC) Bitcoin is skyrocketing right now as it seems that institutional investors are jumping on the bitcoin trend.
Video of the day
Watch this tutorial on moving averages by Matt and Noah.
Traders Lounge 11 AM EST
Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.
Halftime Report 12:30 PM EST
The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day and fun in a way that only Matt and Tim can deliver.
Cash Flow Condors 8:30 PM EST
Join Tyler Craig as he hosts his monthly Cash Flow Condors MasterMind group.
Financial freedom is a journey
Sign up now and gain unfettered access to all of the quality content and powerful Scouting Reports that our Pro Members enjoy for 15-days absolutely free with no strings attached and let us show you what your trading has been missing.
Tackle Trading LLC (“Tackle Trading”) is providing this website and any related materials, including newsletters, blog posts, videos, social media postings and any other communications (collectively, the “Materials”) on an “as-is” basis. This means that although Tackle Trading strives to make the information accurate, thorough and current, neither Tackle Trading nor the author(s) of the Materials or the moderators guarantee or warrant the Materials or accept liability for any damage, loss or expense arising from the use of the Materials, whether based in tort, contract, or otherwise. Tackle Trading is providing the Materials for educational purposes only. We are not providing legal, accounting, or financial advisory services, and this is not a solicitation or recommendation to buy or sell any stocks, options, or other financial instruments or investments. Examples that address specific assets, stocks, options or other financial instrument transactions are for illustrative purposes only and are not intended to represent specific trades or transactions that we have conducted. In fact, for the purpose of illustration, we may use examples that are different from or contrary to transactions we have conducted or positions we hold. Furthermore, this website and any information or training herein are not intended as a solicitation for any future relationship, business or otherwise, between the users and the moderators. No express or implied warranties are being made with respect to these services and products. By using the Materials, each user agrees to indemnify and hold Tackle Trading harmless from all losses, expenses and costs, including reasonable attorneys’ fees, arising out of or resulting from user’s use of the Materials. In no event shall Tackle Trading or the author(s) or moderators be liable for any direct, special, consequential or incidental damages arising out of or related to the Materials. If this limitation on damages is not enforceable in some states, the total amount of Tackle Trading’s liability to the user or others shall not exceed the amount paid by the user for such Materials.
All investing and trading in the securities market involves a high degree of risk. Any decisions to place trades in the financial markets, including trading in stocks, options or other financial instruments, is a personal decision that should only be made after conducting thorough independent research, including a personal risk and financial assessment, and prior consultation with the user’s investment, legal, tax and accounting advisers, to determine whether such trading or investment is appropriate for that user.