🧪 This ONE Candle Can Change Your Life

Plus: US stocks rally

August 16, 2024

Good Morning!

US markets and stocks continue their winning streak, pushing back to prices seen before they dumped two weeks ago. Notable moves include Walmart stock jumping 6.6% and Warren Buffett scooping up some new positions.

I also have a new video where I’ll show you one candle that could change your life.

Let’s get into it 👇

🌡 Market Temperature Check

🟩 Stocks Rally as Data Show US Economy Is Holding Up
Stocks surged as solid retail and labor data highlighted U.S. economic strength. The S&P 500 jumped 1.6%, extending its six-day rally to 6.6%—its best streak since November 2022. The Nasdaq 100 and Russell 2000 also gained 2.5% each, while the VIX, Wall Street's “fear gauge,” dipped to around 15.

Quick Links

🛢️ Oil prices drops 1% lower 

🚨 New Video Alert!

This One Candle Can Change Your Life

I just dropped a new video on my YouTube channel that could completely change how you approach the markets.

In this short and punchy tutorial, I will explain how a single candle on your chart can lead to a winning trade if you know what to look for!

Here’s the deal: Whether you’re bullish or bearish, understanding how to enter a trade below or above the market open can make all the difference.

In this video I will walk you through a simple step-by-step strategy using a daily candle, smaller timeframes, and a few key concepts like sell-side liquidity, break of structure, and fair value gaps (FVGs).

By the end of the video, you’ll see exactly how to execute this strategy and, more importantly, how it can potentially improve your trading.

The video is live below. 👇️ 

📰 What’s Happening With Bitcoin?

Bitcoin’s back above $58,000 after taking a dive yesterday. But here’s what’s really got us raising an eyebrow—open interest (OI) is on the rise, even as prices have been moving lower.

CoinGlass recently pointed out that it’s “a bit unusual” for OI not to react to these price swings. We’re seeing total open interest in Bitcoin futures hit a hefty $29 billion, and it’s been climbing all week, all whilst spot prices moved lower, that’s a pretty weird combo.

For those who aren’t glued to the charts 24/7, open interest is the total number of Bitcoin futures contracts still hanging out there, waiting to be settled. When OI goes up, it means both long and short positions are stacking up, and that brings more leverage into the mix. More leverage equals bigger moves—whether we’re going up or down.

Just look at what happened on August 5. Leverage got squeezed out of the market, and we saw Bitcoin dump 20% in less than 24 hours. Yeah, that was brutal. And with OI climbing again, don’t be shocked if we see another wild swing soon.

And there is one more elephant in the room 🐘. The U.S. government moving 10,000 BTC earlier this week. This is part of the haul they seized from the Silk Road bust, adding to the 29,800 BTC they moved back in July. Whether they’re planning to dump these coins or just moving them to a safer vault, it’s got everyone on edge.

So, what’s next? Are we gearing up for another leg down, or is this just the warm-up before the next moonshot? Either way, it’s clear that either move could be very volatile.

On a wider note, Sherlocks BTC Long was stopped out yesterday, totalling a 7% gain.

If you want to keep up to date with our trades in real time, then make sure you check out our community.

‘til next time,

TradingLab