Ugliness lurking underneath the indices and bitcoin update
Don’t forget to come join me for this week’s Live Q&A Chat at 2pm EST at http://tradingwithcody.com/chat. The strong indices seem to be hiding some ugly pullbacks lurking beneath. From Tesla and GSV Capital which are each now down more than 30% since we bought puts on them to our 3-D printing basket, DDD, SSYS and XONE, which are down 10% or more this week.
Even bitcoin is acting a bit cr-oizy. Well, more than a bit crazy, that bitcoin has swung from $350 to $900 in the last ten days. Just today, bitcoin has traded from $450 to $750 on the Mt Gox exchange. Volatility, anybody? There’s no major exchange like a normal currency and/or a stock or bond would trade on for bitcoin (yet), so it’s going to be wildly volatile for a long time, I would expect, even if it does end up becoming a de facto alternative currency.
If you haven’t bought any bitcoins yet, and want to do so, go read Everything you need to know about Bitcoin first. And then look to put in a bid to buy a first small tranche below $600 and then bid on another traanche down below $500. Don’t stress over the process and the time it will take to get it all filled and executed. This is a market truly in its infancy.
DO NOT RISK MUCH MONEY ON BITCIONS!! BITCOINS HAVE BIG UPSIDE POTENTIAL, BUT ALSO COULD BE A ZERO.
