Should I Call This Fear, Boredom or Frustration?


This still remains a very tough market in cryptos. Of course you know that. I tend to trade in such a way to leave my emotions behind. I try my best to NOT get over positioned in weak setups as defined by EW, and to not be shy about taking profits. I'm still vulnerable of course. I'm human. But the emotion that has taken me over is boredom. I love trading. But there is really nothing to trade here. HODL remains the name of the game as long as over major supports. 

I personally really thought the drop on November 2 was a washout that would bring a strong bid in the market (nevermind bitcoin). Ethereum hit the triangle support zone (actually hit the line if you use Coinbase) and bounced. A bid in ETC came in strong, and some alts seemed to ignore the drop and remain in their setups. (ADX, XLM, XRP, STRAT to name a few). But the problem is they are STILL in those setups three days later. So, I see the market from two sides:

What's Bullish? I have been waiting for a few coins to just drop over the edge: OMG and NEO are the biggest. They hit important targets, have lots of room to the downside on the daily charts, and showed bearish setups for a couple weeks. Then they took those setups out,...momentarily. But bounced. Further, in BTC basis, NEO and OMG actually filled in its correction target. It really has no more room to remain in a standard impulse on the daily chart in BTC basis, while the USD chart remains a loft. Impressive. 

Further, ETC, ETH, and EOS appear to be tracing out the first legs of a bullish impulse. Yes, EOS may be back from the dead. Not sure, but looks promising. But I want to emphasize that 'tracing out' doesn't mean complete, nor confirming. At least not yet. 

What's Bearish?: I can't say the price action off the November 2nd bottom is bullish overall. It is possible that some of these rises are wave 4's. I'm giving them a chance, but there is a lot of overlap out there. DASH, XMR are real ugly in particular. NEO may still need a wave 4 up before a final low in this sideways movement since early October. Until we see weak action survive corrective retraces and strengthen, it is hard to believe this sort of action will take us higher. Very disappointing. 

And, as far as analysis, it is hard to offer much until the market breaks loose, up or down. I have posted many upside and downside setups that have failed. That is emblematic of the current conditions. Of course I will continue to post what I see, mainly because if we do get follow through it is nice to be ready. 

But this sort of market is one that you should not overtrade IMO. Take some shots here and there, but mainly all but the most pro just wait. 

Ryan Wilday hosts the Crypto Waves service on ElliottWaveTrader.net.


  Matched
x