Time To Start Swinging

Wait for your perfect pitch.

We say it all the time.

There are no called strikes on Wall Street. In other words, we’re not penalized for not swinging, like you are in baseball.

We have the ability to be patient, to a certain extent at least, depending on your mandate. But most of us don’t have mandates! Even one of the best hitters of all time struggled when he swung at bad pitches.

In this video from our Charting School, we compare Ted Williams’ batting average when he swung at good pitches versus when he swung at bad ones.

Why do we bring this up?

Well, what's the last few months been for crypto traders?

Tumbleweeds...

If you've been watching the tape and actively trading these markets in this messy tape, your probabilities of success have more than likely diminished. It's why we've discussed so few trades apart from a few standouts in this period.

We've been waiting for our perfect pitch.

But with the Bitcoin macro bear coming to an end, is this the time to start swinging?

We think so.

In yesterday's note, we shared this graphic from an old note outlining the trade setups we commonly scan for:

Many alts look like the second setup in the above graphic. There are a ton of names tightly contracted and breaking higher from downtrends that have dictated the price action since November.

Over the last two months, while Bitcoin's been ranging, most breakouts from this pattern ended in false breaks. Now we're seeing these breaks follow through with demand.

The probabilities of success in taking setups -- swinging at these pitches if you will -- are now back in our favor.

So, time to start swinging!

Let's run through a few trades we like taking right now.