LTC - Quietly Hot but Have We Reached the Top?
If you are into crytpo's this should be one of your top 5 core holdings. 1 & 2 are obviously BTC and ETH, but LTC deserves a distant 3rd sitting. Some will argue OMG DASH ZEC and a handful of other good coins, and to a point any of them could be. But what makes LTC #3 in my book is that the average Joe can buy it easily. Yes us die hard traders that live for the charts, breathe pit air, and were given by the hand of God a 24 hour 7 day 365 trading channel with cryptos, can easily dismiss LTC as #3. But in my book I have to take into account how easily LTC can be bought without a mire of transfers, that make most people nervous to begin with (especially with all the news of BTC accounts hacked, the platform hacks etc). Since LTC can be bought with a bank transfer and stored in the wallet of your choice, without moving it to one of those "shady" exchanges, where only whales and guppies play, I rate it #3 on my list.
With that said, LTC has quietly been on a tear recently and has out blown away both it's big brothers that get all the news by 27% and 36%. Yes it has out performed ETH by 27% and BTC by 35% (all in USD). What? Little brother is starting to grow up huh. Well it looks like it but has it run out of steam? In the short term I believe we are nearing or at the top, and I have sold of some of the coins I added last saturday on the original breakoff. Please note that I have a core position and added to this position did not jump in. I then added again at $61 once it consolidated. This goes against what we were taught to do when we started trading. Cost average down, buy weakness, buy when everyone else is selling. I used to do that till I met up with my trading buddy Phil. He said simply why do you want to buy a stock going down. I gave him my Jim Cramer answer, because i'm reducing the cost of my position (this guys an idiot), Phil then replied "What if it doesn't come up or trades sideways for a while, you just CREATED dead money" . (I realized I was the idiot) Phil is a professional trader, and one of the best trend guys I know. Now that's not to say there is not a time to buy the dip and cost average, but I was doing it all wrong. Why am I cost averaging up? Well i bought the breakout (as Phil drilled into me over many year)s and then when it exhausted and traded sideways i looked for a breakdown to get out or like i did do I bought the next breakout. Yes cost averaging up is more profitable then cost averaging down. Why? well Who wouldn't pay $61 today for LTC. Enough said. On the opposing side, there were those buying MCO and cost averaging down. How many of them wish they wouldn't have done that. Every single one. Yes they will say "it's long term", which is the same as saying crap I don't want to sell at a loss. And many will ride it to zero. You buy winners, and winners that are running strong. But we must always realize that horses can't run forever. And LTC is no different. LTC has hit the 2.618 extension of the previous wave. Ok I can now sell of the coins I bought at $61. That just reduced the others to $38/coin. Now that's how you cost average down!!!! This puts me in a place with much better options. Now I can see if it consolidates and make yet a higher run. Or get out during the bull trap. I have provided the likely moves in the near future. Yes I'm confident if we get a pullback there are always those that think, ahh I can now cost average down those coins I bought at the top, and they do only to form a double top and retrace down to point C. And then you'll get the "I'm holding them for long term". sound like you? change your thinking.
So though I am bullish long term on LTC, it does not hurt to take some profit off the top at this time.
With that said, LTC has quietly been on a tear recently and has out blown away both it's big brothers that get all the news by 27% and 36%. Yes it has out performed ETH by 27% and BTC by 35% (all in USD). What? Little brother is starting to grow up huh. Well it looks like it but has it run out of steam? In the short term I believe we are nearing or at the top, and I have sold of some of the coins I added last saturday on the original breakoff. Please note that I have a core position and added to this position did not jump in. I then added again at $61 once it consolidated. This goes against what we were taught to do when we started trading. Cost average down, buy weakness, buy when everyone else is selling. I used to do that till I met up with my trading buddy Phil. He said simply why do you want to buy a stock going down. I gave him my Jim Cramer answer, because i'm reducing the cost of my position (this guys an idiot), Phil then replied "What if it doesn't come up or trades sideways for a while, you just CREATED dead money" . (I realized I was the idiot) Phil is a professional trader, and one of the best trend guys I know. Now that's not to say there is not a time to buy the dip and cost average, but I was doing it all wrong. Why am I cost averaging up? Well i bought the breakout (as Phil drilled into me over many year)s and then when it exhausted and traded sideways i looked for a breakdown to get out or like i did do I bought the next breakout. Yes cost averaging up is more profitable then cost averaging down. Why? well Who wouldn't pay $61 today for LTC. Enough said. On the opposing side, there were those buying MCO and cost averaging down. How many of them wish they wouldn't have done that. Every single one. Yes they will say "it's long term", which is the same as saying crap I don't want to sell at a loss. And many will ride it to zero. You buy winners, and winners that are running strong. But we must always realize that horses can't run forever. And LTC is no different. LTC has hit the 2.618 extension of the previous wave. Ok I can now sell of the coins I bought at $61. That just reduced the others to $38/coin. Now that's how you cost average down!!!! This puts me in a place with much better options. Now I can see if it consolidates and make yet a higher run. Or get out during the bull trap. I have provided the likely moves in the near future. Yes I'm confident if we get a pullback there are always those that think, ahh I can now cost average down those coins I bought at the top, and they do only to form a double top and retrace down to point C. And then you'll get the "I'm holding them for long term". sound like you? change your thinking.
So though I am bullish long term on LTC, it does not hurt to take some profit off the top at this time.
Komen:
I want to emphases this is the pattern I'm looking for it to follow and from experience a highly probable trade. You must be flexible and revise your charts as the market provides new information. Only the market is 100% right!
Komen:
I just want to say KABOOOOOMMMMM sometimes you get really really really LUCKY!!
