IA Daily Digest (August 5-8, 2024) (Patreon)

Summary of InvestAnswer's Posts (thanks, Josh, for collecting)

Date: August 5 2024 - 8 August 2024 

• Bitcoin:

  • Bitcoin Party:

  At 100k party, IA will get Ivan, Marty, Mando, CTO and Raul Paul together to do a stream. ⁠

  • MSTR Trade:

  IA is extremely overweight MSTR but he plans to continue to ride the train, but may take some off the table before year end depending on price. IA hopes Tesla will still be under $300 by then. ⁠

  • SOL/ETH:

  SOL has made all time highs against ETH. We are now at level 6 on the ATR scale. ⁠

• Tesla:

  • Price Action:

  Tesla is started to mean revert from $184, and is less than $3 from where we were buying last Friday despite the sky falling. ⁠

  • Super Computer:

  Tesla’s Giga Texas supercomputer cluster has a name: Cortex. It is a multi billion dollar compute cluster. FSD is about to take an even bigger leap froward. ⁠

  • Synthetic Longs:

  IA has a ton of synthetic longs on Tesla, but options pricing is not currently attractive so he bought shares on margin sub $200. It is the prudent thing to do right now. ⁠

  • Sub $200 Tesla:

  A member was surprised to hear James and a few others bought stocks on 8/5. They believed this could be a dead cat bounce and there is additional downside to come after looking at bar patterns from market crashes in 2020, 2017, and 2008. IA still bought Tesla due to expected value. Tesla under $200 is a no brainer and he has said that many times. It is okay to be emotional or sad about certain things, but never about money or markets. ⁠

  • FSD:

  FSD is safer than a human. IA finds it hard to believe we live in an age when you can buy a car for $30K and it drives you around without any human intervention. THIS IS NOT PRICED IN. ⁠

  • Open AI:

  Tesla CEO Elon Musk sued OpenAI in federal court, alleging the ChatGPT-maker and two of its founders, Sam Altman and Greg Brockman, engaged in fraud, false advertising and breach of contract when they started a for-profit unit of the nonprofit Musk had backed. ⁠

  • Money Market:

  IA’s money market investment used to be BTC in 2017-2021. Then, it became MSTR in 2022 and 2023. Now, it is Tesla. ⁠ 

• Macro: 

• Employment Rate: US Employment Rate continues to rise.

Money Printing:

The money printing will drive BTC. ⁠

• IREN:

Iren’s recent decline is due to the ATM buzz saw. Ie Stock Dilution. ⁠

Misc: 

• OpenAI:

OpenAi is slowly collapsing.

• Bitcoin:

  • MSTR:

  MSTR will dilute shares around 7%. The average volume is around 1.3BN, so IA reckons it will take 1-2 weeks to sell 2BN. ⁠

• Tesla:

  • Elon Musk:

  Musk’s involvement in politics does impact short term price, but enables us to stack cheaper. Eventually, it will be like keeping a beach ball underwater. Tesla will rise. ⁠

  • Cyberbulls:

  IA is on cyber bulls and will cover many topics regarding, margins, bear cases, and robotaxi technology. It will be streamed tomorrow. ⁠

  • ATR:

  Tesla has bounced perfectly off level 4 at $184.

• Solana:

  • Bullish Movement:

  SOL hit $152 fast. ⁠

• Trading and Investing:

  • Line Charts vs Heikin Ashi Charts:

  IA outlines the differences between Line charts and Heikin Ashi Charts. Line charts plot a single line connecting the closing prices of each period. This simplicity makes it easier to identify overall trends without much noise. Good for identifying overall trends and major turning points, but they might not capture the nuances of price movements within a period. Heikin Ashi charts use modified price data to create a smoother appearance, which helps in visualizing trends more clearly and reducing noise from market fluctuations.Heikin Ashi charts show candlestick patterns that help identify trend reversals and continuations. These patterns can provide more insightful information compared to line charts. In summary, while LINE charts offer precise data points and simplicity, Heikin Ashi charts provide a clearer and smoother representation of trends, which can be particularly beneficial when using the ATR model on TradingView. ⁠

  • Risk Management and Closing Shorts:

  Exiting a short and avoiding reentry after closing a short position, it's wise not to jump right back into trading. This prevents making hasty decisions based on emotions or recent trading outcomes, especially when the market is still unpredictable. Opting for Cash Over Crypto: Instead of staying invested in cryptocurrencies, moving to cash is safer. Cash doesn’t fluctuate like crypto, making it a stable choice when the market direction is unclear or if the trader needs time to think about their next move.

• Bitcoin:⁠

  • MSTR:

• MSTR will dilute shares around 7% to buy 2BN worth of BTC. The average MSTR volume is around 1.3BN, so IA reckons it will take 1-2 weeks to sell 2BN. ⁠

• Solana:

  Tap to Pay comes to USDC and iPhones soon - powered by Solana

  ⁠