This is now one of the most volatile times in markets in many years, from commodities to equities to fixed income, markets are whipping back and forth as the situation with the Iran war and the speculation regarding it drives market moves. Crypto seems to of not got the message yet with very much range bound trading still in play.
It is tempting for traders/portfolio managers to want to get involved but the reality is that while the volatility is not there, it’s not the time to trad e. As I’ve mentioned before during the conflict, if you were flat here and looking at Dogecoin you would want to have something long, I would be comfortable being long at 9 cents or lower, ideally 8.2 cents but if flat the small difference is not going to matter because you would be scaling in with some more longs were a significant fall to happen. If the market does move the other way it will rally more than enough that .3 cents is not going to make a big difference to your profits. If you are already long then there is nothing more to be done around here.
It’s difficult to see with talks being abandoned without a deal how there is not more military action to come in the coming weeks. This is likely to see oil bid again and rising and some equity market weakness although equities in reality are rather resilient so far during the initial part of the war. A lot of the initial losses in equities have recovered but that’s not to say that there can not be another serious leg lower were hostilities to resume and further attacks on commodity infrastructure to lead to Brent crude trading $150 a barrel.
Be mindful that we had a very lucrative flash crash in Dogecoin last year, if we were to see fear and panic approaching 2008 levels across markets, we may see crypto finally have its big move lower and a potential flash crash in the process. Always useful to have orders queued just above major support but a long way off market price in the event of a flash crash.
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