Issue 33: Meet Kevin, The Ugly $18,000 Meme - Masters in Trading Digest

Meet Kevin, The Ugly $18,000 Meme

Welcome to Issue 033 of Masters in Trading Digest.

In today’s FREE MIT Digest, we share opportunities in the Energy Sector.

In Monday’s MIT Digest, we took the road-less-traveled in sharing a new blog post that makes a BULLISH case for bonds. The Bond call worked out quickly!

Stay safe out there.

Good investing,

Jonathan

Volatility Yields Opportunity

Why Do Traders Exist?  What’s the Role of the Trader?

To speculate on the direction of markets?  

Sure, traders gamble (speculate) on the direction of markets but this is not the purpose a trader serves. This speculative behavior helps the trader, but does little for the health of the market.

Instead, the role of the trader is to keep markets efficient.  This is the expectation the market expects from its most active participants, and the reason professional traders are incentivized to transact with lower trading fees.

So, when markets hit multi-year highs (or lows) and therefore trade at brand new price ranges (i.e. Oil over $100) – it takes time before those markets settle into a new price range.

There’s more uncertainty with less historical data.

If there’s more uncertainty about the value of oil, it seems logical that all assets that are tightly correlated to oil also need to find some semblance of value.

And that’s when the conversation moves to trading correlated assets.

In MIT Digest 009, we reviewed $PSX, and the intricacies behind the crack spread.

Key Takeaway – When sectors act in unprecedented ways always try to find the most correlated assets and see if those relationships are holding strong or breaking down,

If tightly correlated relationships break down, that’s what a trade opportunity looks like, and that’s exactly what we’ve been able to do trading the Energy complex.

MEET KEVIN, THE UGLY $18,000 MEME

Pixelmon, a metaverse gaming project, dropped a hotly anticipated NFT collection on Friday, February 25th. At 3 ETH per mint, the game raised more than $70 million for its art. 

 The NFTs, which grant holders exclusive access to Pixelmon-based land and token airdrops, boosted in-game earning potential, access to the alpha release, among other things, were immediately blasted on Twitter over the atrocious art quality. 

What do you think?

This guy has become the most popular; the internet is calling him Kevin.

At current ETH prices, the cheapest Kevin NFT, of which there are 107, is worth roughly $18,000.

Strange times we live in.

Masters in Trading Digest - Issue 33

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FINAL THOUGHTS

WHAT TO EXPECT IN THE NEXT MIT DIGEST

Today starts our 2 class series on “How to Find Explosive Energy Trades”

In the next issue, we will continue covering sky-high oil prices.

Keep your feedback coming into support@mastersintrading.com.  We’re excited to share your feedback along with fantastic suggestions for upcoming issues.

Until then, trade smart and always manage your tail-risk.

Thanks for reading,

Jonathan Rose

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