Showing posts with label #ALTERNATE TRADE STRATEGIES. Show all posts
Showing posts with label #ALTERNATE TRADE STRATEGIES. Show all posts

Tuesday, August 21, 2018

Continuing 'DIVERGENCE': EURO & USD Validated

The market highlight reflects that the significant price divergence between the EURO & the US Dollar continues with both major currency pairs have moved in contrast with the DXY declining to 95.50; while the EURUSD is at 1.1500 price recovery for now. 

Likewise, the EURUSD opening price gap have justified our call dated Aug 12, which served to be an 'Exhaustion Gap' but was able to re-establish a 2nd lower price at 1.1300 that triggered a greater snap pullback currently trading at 1.1525 levels to this writing. Well aligned with the DXY price decline at 95.50 in Asia session. 


Tactical chart technicians who have identified the price reversal in the making then, were defined with a 'morning & evening star' formation pattern on both the Euro & DXY signaling a probable market directional change. Swing / Short Term traders out for a sizeable triple digit pip change would have taken this market call / trade setup.  


Other than our technical take on the USD Index in comparison with the Bloomberg USD index #BBDXY, the 'alternating market shift' were anticipated due to other influencing factors. One market driver that would not be discounted was the fact that the 10 year yield on Treasuries have moved to the 2.83% when compared with the 2 year note is now lower to a 23 basis point differential. Thus a signal of a slowing economy yet contradicted well with higher price movement on #equities would have to be appreciated. 

For now, these market conditions would serve as the backdrop for the USD and equity indices theme which will remain until such time a fresh catalyst would emerge.

Related Information: 


Friday, February 23, 2018

BEST & WORST for BITCOIN is OVER, For Now!

It's been barely two months since both the CBOE and CME have engaged in the Bitcoin exchanges. While we've probably seen the initial highs marked near the 20k levels and a secondary near 17200, it is a fair assessment that these highs can now be called good price reference on the high side.

Meanwhile, aside from where all these prices came from, the rapid decline from these highs have made it clear that the first low near 9020 and the secondary low marked at 5870 low likewise serves as the initial base price to consider. The wide range established between its high and low simply means that the price action on Bitcoin price swings may well still be in triple digits in both directions. Substantial enough for speculative day traders out for a quick bite of the market but not excempted from the risk of loss at the same time.

Observing preice movement and market behavior since the two major exchanges opened and how well the prices of bitcoin have remarkably been well tamed from where volatility kicked off a couple of years ago. In simple terms, the hot market have cooled off with both exchanges participation have dramatically paved the way for much of the oderly transactions that we see today. But not without a price to pay, as we see the price of bitcoin has been sliced to more than half of the range it has to day.


Although, the price range between 8k and 12k could well be considered a fairly priced level of transactions as it navigates itself for a long period of consolidation. It so happens that the length of time that Bitcoin would have to narrow that wide gap until such time it can break out of the consolidation phase. The random price swings can go in both direction, but at least with a short price reference slightly over a month could still prove to be a good reference for short term trades based on its technical perspective. Don't expect to make the same type of returns it once had. Even the way that GBTC already did a split 91-1 that would not give the same levels.

Choosing between classic or Futures trading on bit coin would really depend on investor / traders goals and objectives. As both carry a higher degree of risk and capital to start with regardless leverage or not, the risk involves a higher degree of loss with an equivalent reward at stake as well.

For those who have already been holding on to whatever amount or price of bitcoin then, consider futures market as a strategy to protect the holdings against any adverse future price fluctuations. And simply make use of whatever available methods the market has to offer to enhance and improve your portfolio or trade positions.

Be a smart tactical investor / trader and outmaneuver the market
at its own game. 

With CLASSIC, FUTURES and BLOCKCHAIN Relative ETFs Market it can only get better over time as the global market evolves around technology driven innovations continue to move forward.      

Friday, January 12, 2018

USD & EQUITIES On the HOT SEAT - US Investors Stays while others Shift Gears

Forex Market finally getting some Boost!

The USD - DXY continued weakness contrary to its short-lived, relief recovery posted last Jan 02 have given the EURO a pronounced rally currently near the 1.2150 levels as reflected on the chart below. This move have been a threat for European equities, as quite a number of US equity investors shifted towards Europe including some Asian emerging market stocks. 

EURO as of Jan 12, 2018 Fig A



With a full blown record levels for the US major indices, they have proven to be more resilient in spite of the recent declines which started on the Equity Futures market at the start of the week. And met a considerable rally where the DOW would open higher above 25600 levels. Whisper numbers  of 30k is in the air, as traders are quietly aiming the probability how remote that this would even happen soon or whenever. The same is true for the #SP500 3k and the #NASDAQ along side the #RUSSELL 2000 gaining ground from the past week.

Moving forward, we still expect these markets to stay well within our time frame before any major changes occur. A blow by blow market report would not be necessary as most of our trade positions in the DDM and UDN ETFs are in place from a carry over from 2017 and be able to ride on this 'Reinforced Market Trend' the best way possible.

While on the spot currency front other than the EURUSD, Commodity currency such as the AUDUSD has always been our choice in Asia compared with the USDJPY since it has been confined well within its range especially with the twist made by the BOJ on its monetary policy that saw an acceleration of the YEN back below the 112.00 aiming at the 110.00 levels in the mid term trade outlook. 



Friday, November 17, 2017

Walmart Trailing Amazon, Testing Triple Digit Price Levels

Not without a Blip Pullback

When the market trend is up prices do go higher with conviction & a convincing follow through! Walmart-$WMT and $AMZN prices takes off in US trading session. This is what real Transparency, liquidity, volumes, and momentum can do that drives global trading in the US market far better than other markets.

Live straight-through trading with expectation for Walmart in triple mark supported by increasingly consistent trading volumes.  


   

Tuesday, November 14, 2017

EU GDP Lifts #EURO #EURGBP Cross Rate

CABLE Recovers from early loss

Even before the EU #GDP growth report came out, the EURO's price at 1.1580 have been the critical price level where an expected technical rebound would be met once it had reached that level. A more psychological price support previously defined, plus a well supported growth in Germany's economy have beem the main drivng catalyst that provided the #EURUSD European rally back towards the 1.1747 to this writing. Thus supports the #ECB's tapering plan scheduled for next year to continue its course.


With that said, UK PM Theresa May's political turmoil prompted the Pound Sterling (CABLE) to decline below the 1.3100 levels which has been in the defensive for quite awhile. The beneficiary from these price action which spilled-over into the #EURGBP cross rate, saw prices surged back to 0.8970.

A clear bullish signal that supported prices while making a follow-through from its low at 0.8800. With the USD loosing steam and retreated back down below the 95.00 basis point gave way for the EURUSD to surge a 200 point move along side the EURGBP cross rate. A typical trade strategy that we have been executing for quite sometime. And have shown its effectiveness especially when the USD stalls and a good fundamental report comes along such as today's EU GDP data.



Friday, October 6, 2017

RECORD HIGH for AYALA Corp. & SM Investment - PSEI at 8406

With increasing momentum, the PSE Index have further its advances with a record high at 8406 in the morning session. Yet again, being a Friday, have declined back to where it came from and closed at 8310.88 up by a 100 pts for the week and a YTD gain at 21.49% so far. But what has been widely expected from us is these two companies described below.  

As of Oct 06, 2017



AYALA CORP - #AC Marks above PHP1000 / share as of the morning session dated 10/06/2017. The Market & Price Call dated 9.29.17 have just been VALIDATED. #SM still trailing although, it did register a new high at 925.00 for the day. Eventually it will get there.

Price Action Creates a V&P Divergence

As of Closing week ending Oct 06, 2017

On the contrary, this price move have created what is known as the Volume & Price Relationship where a ''Divergence' reflects a probable market pause coupled with session correction on both stock prices. Watch how prices reacts on the succeeding trading weeks.

Question is: Which of these two stocks would blink first?

And as for the US market, let's see what the results would be for the JOB#s, figures and data that comes along with it.

Sunday, October 1, 2017

Stock DIVERGENCE Closing into ALIGNMENT: #AMZN &. #GOOG

#AMZN was the first stock that marked the 1000 price last 7.12.17 with a high at 1083 on the 27th of July. Thereafter it was down hill slide to 931.75 just this Sept 26, 2017; with a brief recovery at the previous 1000 levels.



Currently, ALPHABET - (#GOOG) stocks have surpassed its previous high of 942.48 thus creating a divergence with AMZN price levels. And is currently at 959.11 closing in with AMZN's price at 961.35 at the close of the 3rd quarter trading. Pay attention to price action between these two stocks. Its a neck-to-neck battle as #GOOG will eventually mark the 1000 levels. A position trade for keeps that we have played for quite some period of time.

Moreover, these stocks makes their respective price adjustments in the market; therefore it makes more sense that we do the same with our stock position whenever these market play occurs.  

These exceptional times needs PATIENCE and NOT COMPLACENCY.

Thursday, September 28, 2017

#AC #SM Price Action leads #PSEI Mid-day

REAL TIME BRIEF: As the 3rd quarter draws to a close

Two (2) of the major conglomerates, Ayala Corporation & SM Investment Corporation have been leading the PSE Index nearing its milestone price near the PHP1000.00 mark. With Ayala #AC trading at 987.50 and SM Investment #SM at PHP901.50. As the companies have engaged in the property development and banking sectors other than other sectors in the industry.



Thus leading the PSEI back above the 8200 levels where a roller coaster ride driven market were seen with a registered low at 8119. And is now trying its best effort to fill-in the daily open gap that was left behind right after the first registered new high at 8321.

Well anticipated that Ayala & SM would be leading the benchmark again into positive territory and driving towards record levels, in spite of several market drawbacks from Foreign market participants. Nonetheless, a market driven record highs are in sight where majority of the PSEI composite would benefit from.



Ending the 3rd quarter on the last day of Sept 29, 2017 would welcome the 4th quarter trading with spill over market sentiments starting the first two (2) weeks of October. Although, the starting month will likewise carry a load of market 'uncertainty' as the 4th trading quarter remains to be a period of position adjustments for institutional investors and corporations preparing for the reforms, plans and implementation heading into 2018.  

Price Update on AC & SM




Thursday, September 21, 2017

Real Time Brief on #PSEI & its Component Sector Industry as it marks a new Record High above 8300

A Bonus for PH - US / Asian Investors by MegaTrade101

Now that the #PSEI have broken through the three (3) psychological barrier price resistance level of 8000 mark, the angle and momentum of acceleration of prices that we have expected have finally came into fruition that registered a record high at 8299. 

The three (3) day rapid surged was met initially with profit-taking orders and liquidation in general that led to a strong pullback down to where it came from. Speculative positions by short-term local retail investors & traders alike were obviously been stopped out of the sudden decline prompting the index to close lower from their intra day highs. 

A normal case of a market squeeze where institutional, broker / dealers and professional traders has enabled bargain hunting through these lower prices as we have likewise done so. Reading through the market's behavior has proven well effectively knowing that such a comeback scenario towards the recent highs would also carry a higher probability. Similar case has also been identified with the US Major indices. The so called "Market Shake-out" 


For now the re-surging price action of the local bourse gaining back from its footing is currently at the 8285 mid-price from a session break before resuming its course. A daily and end of the week's trading session for a decent corrective move would not be discounted as it has been the norm for most market participants, but the overall market sentiments would still remain.

Meanwhile, the Financial sector were actually the first to lead in the market and lost steam at the mid-year level several factors leading to its decline. With a neutral to stable stance on FINANCIAL for now, it is trailing the HOLDING FIRMS price action followed by PROPERTY and INDUSTRIALS. Although, Mining and OIL had indeed provided a hand from their recent recovery as US and global metals and Oil prices have been on the rise since the US Dollar maintains its weakness for sometime now. But it is expected to have a good chance of recovery after the FOMC's hawkish tone for rate hikes until 2018 was reported.

Another week until the end of the third quarter period of 2017, that we would have a much better read on prices. The prevailing sentiments would continue for the PH stock market until such time that there would be external forces changing this. And as an encouragement the #PSEI just marked a new record high at 8299 as of this writing.  As the PH Stock market draws to a close for another half hour there has been a lot of 'Block Sales' from industry sector participants' that has decided to cash in their profitable positions. Too tempting for institutional account managers not to take advantage of the market's surge as the #PSEI is currently at 8311 from a pm session high at 8321.

Sunday, September 17, 2017

London's Market Reaction  May Dent #CABLE Surge with #contagion on #EURO #EURGBP Cross Rates Increase #VOLATILITY

#CABLE's surge above 1.3600 levels due to speculative trades of an expected rate hike in November maybe dented from London's attack at the opening session by Monday in Asia heading towards the European sessions. While its price action has been justified well surpassing its previous high range at 1.3223 - 1.3268 the directional trend for the Sterling Pound or GBPUSD would still be intact in spite of the probability of a corrective move due to fundamental factors.


The USD initial price recovery have paused as the surge on the #GBPUSD managed to play out well compared with the single currency #EURO likewise with an interim rally towards the 1.2092 have lost its steam giving a mix signal in the market. And affected the obvious contagion effect on the #EURGBP Cross rate. That led to a dramatic decline at 0.8774 from a high at 0.9226.

By watching the relative price action of these major currency pairs including the #USD- #DXY prices their relative 'CORRELATION' has everything to do with a trader's course of action. Technical indicators are simply used as a guide; lagging as they are after the fact that prices have moved ahead of these indictors. The DXY have found a base range that can hold daily price action towards the recent high. But there is still no actual confirmation of a trend reversal that is seen with the exemption that this base range may hold true by the end of the month's trading. For now, 91.00 low may have a retested but really depending on CABLE's run would loose steam for the time being.

Watch for the Asian turnover sessions towards European trading where an increase in volatility would be expected as we all draw closer toward the last two weeks of the 3rd quarter period.   



Wednesday, August 16, 2017

USD Price Reversal: Alternative Strategies Applied

FIRST SIGNAL OF A USD-DXY PRICE REVERSAL:

Marking an initial high at 94.13 basis point for the DXY serves as the initial signal that an increase market volatility would start to build. This is where a wider range could be expected more as it build momentum and steam.

That is why taking this cautious trade play well worth taking due to its 'Calculated Risk / Reward Ratio'. A DX Futures contract to compliment our UDN ETF as lock-in our gains as a hedging strategy while waiting for the surge in Volumes / Open Interest in the DX futures market  When the USD does continue its trajectory lifting / cashing in on the ETF is the next move to take. Thus, VALIDATING our market and Trade call on the USD / Bear & Bull strategy. The continuing sequence of trades are made based on the successful trade results from each previous position.


DX Futures As of Aug 15, 2017



Wednesday, July 19, 2017

Nasdaq, S&P hit record highs as tech, health stocks rise

Overall market sentiments remains bullish for the US Equity Indices which are making record highs to this writing. #NASDAQ has been gaining back considerable ground after the corrective moves while the #SP500 and #DOW have followed suit. Although, it was Healthcare and media sectors that was taking the lead so far with Morgan Stanley

These are indeed exceptional times when secular forces have continued to dominate the market in every turning point of a correction. While taking advantage of market uncertainty from those investors reluctant enough to take any new positions at the current levels.


Wednesday, June 21, 2017

US Equities Corrective Moves are Relatively Good

That depends whether you're a  'Bull or Bear'

With the way prices has moved after that rebound Monday, a lot of mix outlook from analyst have driven market players around the word 'Uncertainty' again. With Oil prices taking center stage as it drifts lower into negative territory as it has been officially claimed have caused DOW & SP500 prices to follow suit after Monday's rally. And the obvious price action between these two (2) indices are relatively contracting as we see today.

Currently, with Oil prices trading @43.35 along side with the precious metals such as Gold below the USD1250.00 as the USD gains ground from its 96.32 basis point low from last week's trading activity is something to watch for.

This includes the probability of a market consolidation with price swings in both directions could occur even after June 23, 2017. Where we do expect some market volatility being the triple witching day a week ahead to the end of the 2nd quarter trading for 2017. The level of difficulty contrary to this is the fact that we have called a wider price swings after the USD reached its 103 bp mark and drifted lower at the mid-range of its high and low band. And is currently at a price recovery mode @97.70.

Our take on these equity indices declines are limited to an orderly correction in the double digits contrary to what others have been clamoring for. But these moves would barely budge well selected stocks as investors alternating  trade plays dominate alongside the Nasdaq and Dow equities. Which is what we are applying are trades from as well. While all these price swings create a price pullback well within the session that also includes validation from technical divergences that have occurred prior to the continuing trend.

Wednesday, June 14, 2017

Market's Theme: Alternating Trades As Market Shifts

#Equities #Currencies Cross / Alternate Trading / Strategies

We have obviously seen how the markets have been shifting gears with investors taking a cue from the recent Nasdaq decline. While a renewed price recovery helps from the FAAMG stocks, the DOW's resiliency at this time needs a little more respect other than calling it out. These price move is a 'Classic Market Play between Financials & Tech Stocks.'

This has been quite a show of strength and courage for these markets to stay well within their higher bands contrary to and expecting declines. Although, traders and tactical investors have proven to be more pro-active to the recent records highs of the #DOW & #SP500 as they now move closer towards the end of the 2nd quarter trading. Besides, the recent decline from the Nasdaq can be considered a "Market Shakeout' from over-crowded positions other than a 'Flash Crash' so to speak.



As for the currency market, 'Alternating Trades' between #CABLE & #EURO with the fundamental backdrop; the #EURGBP Cross Rate as mentioned in our May 22-26, 2017 market outlook, having been the beneficiary of a Euro recovery. For as long as a continuation of the prices goes above the 1.1380 then we could see the EURGBP go beyond its current prices @0.8820 as of this writing. The #USD-#DXY weakness have contributed more to its recovery rather than on its own.

The same case scenario can be seen on both equities and currency price movements that 'Alternating Trades' could best be made while waiting for some increase in volatility in the market from fresh incentives.  Others may call these moves as a 'Rotation' when you're outside looking in, but active traders and investors could properly position themselves to be able to navigate market potential while at the managing risk.

NOTE: Relative to science a 'Paradigm Shift' is where we find that new technology brings about new changes in how investors/traders interact in the global financial markets. That is the very essence and importance of being strategically relevant in today's global connection in trading and investing.


Friday, April 7, 2017

#PSEI PRICE ACTION: Just Made A Third Rally!

Who's Counting?

Price Update: PSEI marks another new record high for the opening 2nd quarter trading at 7660 led by Industrial, Holdings and Mining / Oil companies. By staying above these levels is a clear indication that the PSEI have welcomed back a considerable number of Foreign Investments while local investors have boosted transactions encouraged by the recent upswing of the market sectors especially with Financials staying above 1850 levels with Holdings trading above 7500 MA at 7679. An obvious pullback of prices from their respective highs particularly on the PSEI is expected being a Friday end of the week's trading and profit-taking trade sequence as a result of two consecutive up days.

Short- Recap: The significant 'Price & Trend Reversal' from March 10, 2017 have been driven by 'Price Adjustment & Weighted Distribution' two key factors identified with a dramatic decline in prices. And with stocks that had a corresponding higher volumes on the close which can be viewed as a Volume Reversal thereafter. Where the succeeding opening price levels were far above from the previous closing price.

The importance of knowing where all these prices came from is a significant part of the trading equation.

Recap: PSEI Reference Chart as of March 10, 2017
A Heads-up Before the Rally

Where the succeeding opening price levels were far above from the previous closing price. With that said, the market sentiments surrounding these prices states that not a lot of analyst have been unable to take advantage of the rally due to the rapid price action at the closing & opening bell from March 10 -to-11, 2017. With a exceptions, after learning the revised higher GDP figures which provided the additional lift for the PSEI to pass the 7500 and beyond 7600.


NOTE: Great to find 'Alternative Markets' from a US Trading break at this time.

Wednesday, March 22, 2017

Rebalancing Risk Return in Equities & Foreign Exchange

Obviously enough, the US selloff that started in the US have rippled through the Asian region as most stocks and other industry sectors have declined. Financials especially banks have garnered the most loss in stock market prices that spread over the Dow and Nasdaq indices.

There were some chart signals before Tuesday's decline as prices on the USD and the DOW have been hovering at the higher range of their respective prices where a selling pressure existed when the USD index failed to move back above or near the 103.00 levels twice in a row. And when such market condition occur the best case scenario is to gradually lift market positions off the table. And profit-taking prior to the end of the 1st quarter trading is logical move. Whenever 'Uncertainty' is defined the best 'Hedge' is to have CASH on HAND and wait for the next best trade setup. This is quite a coincidence soon after the market drifted lower to this writing.

Practical trading strategies can best be practiced at times least expected like Tuesday's decline. And this is in-lock step with the USD decline below the 100 basis pt. market's lower range as described in our recent chart figure. Where a cluster of top heavy candle bars marked on its higher range had no further place to go but for a corrective move. For now, the DXY is at its mid-range and is awaiting other probable catalyst for a continuation or a recovery. Either way, a wider trading range is expected  as volatility already began to emerge back in the market. And expect alternate pullbacks at the least expected trading market session until the end of the month of March trading.

The Foreign exchange market would be the first beneficiary as the market have started to shift back to the currency market from stock settlements. But we have to understand that this is just a mere start of a healthy correction widely expected by the market. However, there is still market uncertainty if a continuation of this selloff would continue or not. There would be a balancing force between these two markets. As reluctant as other maybe, traders would be threading a fine line where the best probable bet would be taken.

For now, we have level-off on equities and moved back towards the currency market nearing the end of the first quarter trading. This is in line with our market strategy and following cyclical patterns towards the middle of the year and the 2nd quarter of 2017.
  

Tuesday, March 7, 2017

#SNAP Just Snapped! What's Next for the stock.

Media financials are having a field day with #SNAP tumbling below IPO levels of USD24.00. While the stock reached a milestone levels @29.44 before declining to its lowest levels on the third day of trading @21.30 have been hurt with analyst rating a 'SELL' for the company. Negative revenue, overvalued, and liquidation to sell after IPO have been the catalyst for SNAP to snap back and currently trading @21.64 to this writing.

Banks pushing stock prices on SNAP at their best offerings prior to IPO have indeed been seen as one of the prominent end-result for such decline. Leading analyst drawing a line of none revenue for starters have dampened investors to sell today's opening. Sad indeed as Snap Inc. had some similarity with #Alibaba as its stock rose but not nearly three days after a declined occurred. As for Alibaba (BABA) took at least three months before its decline to USD57.20 low. Although, today's prices for Alibaba have reached 103.00 nearing its highest level range of 110.00 - 120.00 respectively. Surely there may still be some other pertinent reasons for the decline but the stock would be able recover, not unless it does a Twitter type of decline which the company can surely do so. 

Wednesday, February 1, 2017

European Majors OutPerforms PHP

European OFW Cheers - It's our turn!
The USDPHP exchange rate have twice marked a brief exchange rate above 50.00 / USD with a short-lived high @50.15 found a relief from the USD weakness a well deserve corrective phase since touching a DXY high @103.55. And a couterpart strength from the European Majors shift investors / traders interest.

In spite of the USD weakness based on the current DXY weakness below 100 bp , could have provided more support for the Philippine Peso against the USD. As the USDPHP exchange rate and price range is between 48.80 low - 50.50 high for now. Initially, it was the USD strength that weakened the PHP other than the other issues surrounding the PH economy. Price action is limited within the higher band that will eventually follow with the current trend direction. However, the USD weakness have been replaced by the European majors price recovery amid their strength that alternately shifted PHP weakness to continue.

Leading the Currency Exchange surge accordingly to their respective Price Action:

British Pound / Philippine Peso (GBPPHP) @63.20

Euro / Philippine Peso (EURPHP) @53.75

Swiss Franc / Philippine Peso (CHFPHP) @50.20 

Monday, January 16, 2017

#EURGBP Cross Gains Amid #CABLE Weakness - A Classic of its Own

EURGBP As of Jan 16, 2017
In contrast the positive effects of #CABLE's weakness provided the #EURGBP Cross rate a sustain move relative to its established direction as it penetrated its trend line resistance on the way up at the opening gap traded @0.8836 as the #EURUSD stayed @1.0605 levels at the Asian open.

There are only tow ways to interpret this move either a run away gap which would push further. Or a pullback session to cover such gap well within the two major turnover sessions in Europe and and the US trading session. The session ahead will dictate price action and swings in both direction before finalizing its mark on the market for the start of the week. But the fundamentals on UK BREXIT surrounds the negative outlook prevailing. However, do not discount any probability of a price recovery  as it nears its initial objective @1.1930/40 levels and an extension below much lower than 'Flash Point' previously traded at.

The tech side of the EURGBP rate is again a typical B/C formation where it would find some completion along the next trading days or week ahead. As prices move so does the increase in volatility.

Saturday, January 7, 2017

EFFECTIVE Strategy: ARBITRAGE Hedge #BTCUSD Decline With #DX FUTURES

Ahead of the Market has its Advantages! By Expecting the Unexpected Before & After the Fact.

#BITCOIN prices had plunged on China's warnings that BITCOIN is a virtual good and does not carry any legal tender status. This was the statement made by the PBOC similar to its previous statement in 2013. These are the type of external forces that may still dominate the volatile market for Bitcoin.

However, with a $246.94 price net change as of this writing, in spite of such decline the #GBTC has a limited decline of $23 from its recent high which is quite tolerable to this point. This is also where we have been hedging and subsequently protected its gain equivalent to its value by the US Index point value by way of its equivalent contract size with the DXH 2017 - March futures market in the event of a continued decline as a correction. And monitoring positive net value of trades thereafter.

CORRELATION is a valuable knowledge knowing how it works and how to 'ARBITRAGE HEDGE - VALUE' through proper trading strategies can always be an EFFECTIVE way to level the playing field from unexpected market conditions while utilizing the FUTURES market as another form of 'ALTERNATIVE STRATEGY' to protect, enhance trade position with gains and avoid unnecessary loss in rapid price swings.. The ability to further anticipate any surprising move which the market would be vulnerable.

#DXH2017 - USD Futures

#BTCUSD: Chart & Price Comparison