A senior chartist says traders are ‘mistaking a giant elephant’ in the market by focusing on Meta. He shares how investors can make easy money in a volatile market and 3 altcoin projects he calls investment. Expert’s shares cryptocoin.com We have prepared for our readers.
JC Parets: My favorite technical indicator, price
According to JC Parets, a prominent market technician and founder of AllStarCharts.com, investors are missing the giant elephant walking in front of them as they focus on projects that used to work. On the February 5 episode of ‘Behind The Markets’ podcast, Parets discusses how investors can use techniques to seize opportunities in a more volatile market environment.
JC Parets says the ‘giant elephant’ in the room is the energy sector. It was one of the best-performing trades of the past year, yielding 53% returns through 2021 alone. However, according to Parets, this trade can still be executed as investors are constantly turning to names that ‘made money two years ago’ without knowing the market environment, and the environment is now very different with interest rates rising. The expert comments:
Growth investors were telling me a month ago that energy was overhyped and overbought. That was a month ago, energy stocks are up 25% to date.
As a market technician, JC Parets uses charts to find patterns and trends that point to opportunities, with a particular focus on price. “As for my favorite technical indicator: price,” he said in an interview in August. It’s a strategy that pays off. For example, JC Parets made a bullish prediction for Cardano (ADA) ahead of a rally where the token surged more than 92%.
If crude oil stays above $84 and the 10-year U.S. Treasury yield stays above 1.70%, he recommends continuing to buy energy stocks, buy oil and sell bonds. makes the following statement:
You recalibrate and say ‘wow, if we break (previous levels) then there’s a chance this trend is over, at least for now. And we never broke any of those levels. The 10-years held at 1.70 and oil held nicely at $84 and they are up.
According to the expert, if this continues, investors could face another commodity super cycle. JC Parets said, “And what we do know about these things is that they don’t last a few months or a few years. They last for ten years,” he comments.
The way to make money on put options, according to the expert
According to JC Parets, another big opportunity for investors who aren’t too keen on betting on oil and gas stocks is volatility sales. “An easy way to do this is to write put options,” the expert says, using trader sentiment to identify good times to sell volatility. T JC Parets says it’s ideal for options writing when traders say the market is ‘difficult’ or ‘chopped’.
All these traders are breaking apart and donating to the market. There is someone on the other side of this trade who is collecting these donations, and we try to be that other person as much as possible.
By writing options, traders bet that the stock will either go up or trade sideways. “In any of these situations, you will eventually win,” says JC Parets, noting that there are no life-changing trades, but very high-probability trades with a fixed amount of risk. Also, JC Parets isn’t the only one using this strategy. Investment bank UBS also recently revealed two ways to monetize market volatility using options. The expert says:
As investors, it’s up to us to go to the curb and take those notes or leave them alone.
Altcoin projects that the expert thinks can rise
JC Parets also looks at the altcoin market as Bitcoin climbs above $41,000. According to the expert, below $41,000, there is nothing to talk about long in Bitcoin, if it holds above $41,000, there cannot be anything more positive and constructive for the crypto space. The expert underlines three altcoin opportunities that he thinks could make a big rise if Bitcoin stays at these levels:
1. Terra (LUNA)
If Bitcoin is above $41,000 and Terra’s token is above $53, JC Parets recommends owning Terra. “I have a target 60% higher in ’80s lows, referring to Terra’s 30-day high of $87.80,” the expert says.
2. Cosmos (ATOM)
“I would love to buy a breakout for over $45 at Cosmos,” says JC Parets. Comsos’ all-time high is $44.70. The expert states that it would need to increase by 41% to reach the lock level, but if it reaches that point, he expects it to be a massive trade.
3. Phantom (FTM)
“If we’re over $2 in Phantom, I don’t hate it,” says JC Parets.
I think there are opportunities out there, you know. But I think it all comes down to Bitcoin above $41,000. I think this is the key to getting over $41,000 in Bitcoin. You will find many more opportunities there.
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