Welcome back, it’s been an exciting week, especially for Crypto! ?
There were a lot of good trading opportunities across the 3 main markets, and for this week a lot of the action was focused on the Crypto markets.
This is the reason why we cover a broad range of markets, so that we can focus our attention (and capital) on whichever market currently gives the best returns.
On the forex front we saw Gold strengthening due to inflation fears, and speculation of deflationary action also caused the USD to strengthen.
The GBP and EUR were weakening, so many of crosses against these pairs had decent price moves.
Stock Market Highlights
The stock markets had a slight correction this week (which I predicted in last week’s market wrap), so it was a good thing we had reduced our positions prior to the correction.
Some stocks had pretty bad earnings, which led to huge price declines.
I will be watching this coming week to see if the correction has more legs, or whether it is coming to an end, so that we can buy back in.
Since the crypto market moves very fast, you need to be quick to enter breakouts, and these breakouts can also run up very quickly, for example 10-20% in just a single day.
This is great because the capital can be quickly recycled to enter new trading positions, once the target profit is hit.
Seems like nowadays, everyone is talking about the Metaverse, and every company is following Facebook’s (now called Meta) lead in pivoting to a Metaverse company.
If you have watched movies/shows like “Ready Player One” or “Sword Art Online”, you will have a pretty good idea.
The origin of the term comes from science-fiction writer, Neal Stephenson, who coined the term “metaverse” in his 1992 novel “Snow Crash,” which envisions a virtual reality-based successor to the internet. In the novel, people use digital avatars of themselves to explore the online world, often as a way of escaping a dystopian reality.
In short, it is like creating a virtual world which mimics the actual world, so activities like socialising, learning, gaming, working which you normally do in the real world, can also be done in the virtual world.
By now, you probably get the idea that this is something big, judging by how every major company is looking to get a slice of the pie.
But the big question is, what is the best way to invest in the Metaverse?
If you are not an expert in the industry, it will be hard to pick the correct stocks that give the best exposure, and have the most potential.
So here are some easy ways to do it:
Metaverse Index for Stocks (META)
The first way to get exposure is to invest in stocks that are related to developing the Metaverse, and an easy way to do it is via an ETF (exchange-traded fund) which allows you get diversified exposure without needing to do much research.
Here is the current most popular ETF:
The Ball Metaverse Index is the first index globally designed to track the performance of the Metaverse. The Index consists of a tiered weight portfolio of globally-listed companies who are actively involved in the Metaverse.
Besides stocks, there is another possibility that the Metaverse might develop independently in the crypto space, via DAOs or decentralised projects.
The metaverse is a broad term to define the ever-expanding virtual reality worlds where players can create an avatar, buy land, build experiences, import NFTs, and trade with other users. Here are some projects and tokens:
CUBE is the ERC-20 token native to Somnium Space, a virtual world that offers both community-led events and an in-game economy. CUBE can be used to purchase virtual assets and pay for goods and services in the metaverse. Participants can join via virtual reality (VR) headsets or mobile and web browsers.
MANA is the ERC-20 token used to pay for goods and services in Decentraland. In Decentraland, users connect and interact with each other, create content, and play games. It even has a virtual economy where users can monetize the content and applications they build.
SAND is the ERC-20 token used in The Sandbox virtual world. The Sandbox virtual world is made up of LAND – digital pieces of real estate – that players can buy, and on which they can build games and other virtual experiences.
So it makes sense to get some exposure to this as well.
The easiest way to do it is also via an “ETF”, which is not really an ETF but it is a token which mimics the performance of a variety of Metaverse-related projects.
Here is one such index:
The Metaverse Index (MVI) is designed to capture the trend of entertainment, sports and business shifting to take place in virtual environments.
In conclusion, these are the 2 easiest ways to get exposure to both stocks and crypto in the Metaverse space, for people who do not want to spend too much time or effort doing rsearch.
If you interested to take it to the next level, then you can do more precise targeting by buying specific stocks and projects, but that will involve more research.
https://synapsetrading.com/wp-content/uploads/2021/11/Easiest-Way-to-Invest-in-the-Metaverse-Stocks-Crypto.png7201280Spencer Lihttps://synapsetrading.com/wp-content/uploads/2019/10/logo.jpgSpencer Li2021-11-12 11:48:432022-03-09 11:55:29Easiest Way to Invest in the Metaverse (Stocks & Crypto)
In this week’s market wrap, there have been some epic moves in stocks due to earnings season, hence there were a lot of signals for stocks.
Crypto was mostly quiet last week, while building up steam to break out this week, so we had to be more precise in taking very short-term trades.
This is the reason why we cover a broad range of markets, so that we can focus our attention (and capital) on whichever market currently gives the best returns.
Overall, earnings were good, hence the major stock indices were bullish, and many stocks were making new ATHs (all-time highs).
Some of the most exciting trades were Zillow (Z), which we bought on a false breakout, and got stopped out the next day. The next day, it plunged 25%, thus you can see why the stoploss is important in trading.
We also shorted Moderna (MRNA), which gave a windfall profit when it plunged 30% in a few days.
Crypto Market Highlights
The crypto markets were quite a mixed bag, with BTC and ETH staying quite, while many Alt coins started breaking new highs.
Since the coins could break out at any time, we set up alerts for all of them, so we would not miss the action.
In this week’s market wrap, we will go through the forex market, stock market, and cryptocurrencies, to review major events and trading signals, and look for upcoming trading opportunities.
The forex market was pretty uneventful, but we still got a few trading signals:
AUD/CHF: breakout from inverse head-and-shoulders pattern
EUR/GBP: breaking new lows
XAG/USD (Silver): Potential short near top of range
AUDJPY: Uptrend resume after BO + PB
CADJPY: Breakout + PB
EURNZD: Break new lows
AUDUSD: Uptrend resumes after BO + PB
CHFJPY: Break new highs!
GBPUSD: Possible Type 2 swing setup (short)
Stock Market Highlights
There was a bit of a disjoint in the stock market, with a few huge stocks pushing the market up, while the bulk of the market is down.
This divergence in market breadth is not a good sign, but as long as the overall main indices are still bullish, I will continue to hold my positions in them, while taking strategic short/medium-term swing trades in individual stocks.
Facebook has decide to change their name to Meta to reflect their new direction of building towards the Metaverse, so FAANG is now MANGA. ?
This gave a good boost to Metaverse-related tokens in the crypto market, unfortunately Facebook stock still seems pretty languid.
China stocks ETFs: Prices falling from top of range?
TWTR: Breaking out of consolidation?
GOOG: New ATHs!
MRNA: Potential double top breakout
V: Break new lows
Z: Potential range bullish breakout (+5% profit the very next day!)
SBUX: Break H&S neckline (bearish)
F: PB buying opportunity?
TSLA: New ATHs!
UBER: Break prior swing low
NET: New ATHs! (up almost 50% since first buy call)
Crypto Market Highlights
Earlier in the week, we saw multiple breakouts and sharp runs of Alt coins and DeFi tokens, which corrected after running into resistance, then later in the week we saw the same pattern for Metaverse and NFT-related gaming tokens.
If you ride the wave well and rotate accordingly, this actually provides insane returns of easily 50-200% in just one week. Not sure how long it can last, but enjoy it while it lasts.
One of the highlights earlier in the week was Shiba Inu Coin (SHIB), which lay dormant for a long time before breaking out and shooting vertically upwards. ?
Last weekend, we conducted another online workshop on tech stocks and cryptocurrencies, and since it is a SkillsFuture Credit-Eligible Course, participants could use their SkillsFuture credits to pay for the course instead of cash.
Thanks for the support! ?
During the 8 hours of training, participants learnt how to analyse and value technology stocks to find hidden gems, portfolio strategies to invest in cryptocurrencies, and the latest developments in the field such as DeFi, Stablecoins, dApps, DAOs, DEX, NFTs, etc.
Here is some of the feedback and learning points from participants, after our hands-on market analysis session to find trading opportunities in the market.
If you are keen to learn more using your SkillsFuture credits, you can check out our courses:
