by Nico Isaac
Updated: March 04, 2019
February 22 is the birthday of our first U.S. President, George Washington. Of all the achievements and accolades attributed to the "Father of his Country," one of the most enduring stores about Washington is a complete myth; the famous anecdote of a 6-year old boy George chopping down his father's cherry tree was invented out of thin air by Washington's biographer.
It reminds us how some myths die hard. Like the one that has persisted in the annals of mainstream finance since before Washington was even alive: The myth claiming financial market price trends are driven by fundamentals.
Fundamentals is a fancy term for any news event in or near a listed market's backdrop, be it related to weather, politics, economic data, scientific developments, corporate restructuring plans and so on.
According to the myth, when those events are positive, the market rallies; and when they're negative, prices fall.
Though, that is rarely the case.
Take Nasdaq-listed cryptocurrency mining company, Riot Blockchain (ticker symbol RIOT). On February 6, one CNBC article unloaded a raft of bearish data related to the company, including:
With RIOT's stock price locked in a sideways trend below $2 since November 2018, there was little fundamental reason to suspect an upside break out.
And yet, on February 8, our Cryptocurrency Pro Service analyst Tony Carrion did just that. That day, in his Crypto Video Update, Tony paid no attention to the external news surrounding RIOT. Instead, he looked directly on the stock's price chart where a bullish, Elliott wave pattern was underway: a third wave rally.
In Tony's own words:
"If we're right, there's awesome potential for a much higher move for the stock. So keep that in the back of your head."
What happened next? From there, RIOT took to the upside, rocketing 50%-plus in 10 days.
In that time, on February 15, Tony recorded another Crypto Video Update in which he showcased a second Nasdaq-listed crypto mining company, Marathon Patent Group (Ticker symbol MARA). Tony identified the same bullish, third-wave set-up on MARA's chart as he saw on RIOT's a week earlier and called for a "nice rally above the 59 cents level. You'll want to have this on your radar screen if you trade in the equities."
MARA followed in RIOT's footsteps and rallied over 40%.
Watch an exclusive clip from the February 8 and February 15 Crypto Video Updates to see and hear Tony's analysis of both markets first hand. Simply press play and enjoy:
The following charts show how Tony's bullish outlooks occurred right before powerful upside gaps in both markets:
Elliott wave forecasts don't work out this nicely every time. No method of financial forecasting does. But what Tony Carrion and all our Cryptocurrency Pro Service analysts strive to provide that no other can is an objective assessment of high-confidence trade set-ups in the world's leading crypto markets -- before they occur.
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