What have we not seen yet?

We've seen this exact episode play out before… especially in 2011, 2013, and the winter of 2018: the debt ceiling drama! We are witnessing another one following the same script again. We were told Oct 18 was the absolute deadline that the US will default if the debt ceiling is not raised by then. The market got spooked and panicked. Well the immediate risk has just been removed and pushed to December now. Do you really think either party can afford to allow the default to occur? Don't be silly to believe so!!

One party or another holds the debt ceiling above the heads of Congress, and it would always play out the same way…There's some posturing, tons of scary headlines, and ultimately a deal that sends the market back up. This has become one of the most loved political games the Capitol Hill loves to play with. And each time the market is being fooled around with a huge gyration and volatility, but really for nothing.  That's why I'm telling you as traders you should understand that when headlines begin to dominate markets, like they do now, it creates great opportunities to buy on fear and sell on euphoria. 

One recent example of this was the overaction to the scary headline news that China was banning all crypto. The news sent bitcoin down hard from the $50K area to about $40K overnight. I got nervous questions whether this was a big negative that would seriously hurt Bitcoin and other cryptos. I have to laugh at this kind of reaction. My reply to the question was: Was it really news that surprised anyone? Haven't we already known for years that the Chinese government wouldn't allow crypto businesses to survive there? Can they really do anything harm to Bitcoin and alike fundamentally? Of course not! No one can anywhere in the world!!

I literally placed a limit order to buy more Bitcoin at $40K and Ether at $3000 and happily I got them as I wished💪

Bitcoin is now trading at $54K and ETH at $3500, and those that got in and avoided the headlines could've made a gain of 28% and 16% in just about a week.

That's the beauty of headlines. They shouldn't be feared… they should be used to profit, if you how to play with headlines🤗

So wait for the next moment to come in a few weeks time. Surely we will see a lot of panicky selling when approaching the debt ceiling deadline early Dec. That will be the moment to get some quick profit by going against the herds. 😜