Avoid These Narratives

Investors,

Over the past few months, I’ve reiterated my bullishness on Solana relative to Ethereum, a stance that I initially championed in August 2024. With ETH’s surge in Q4’24, my position became heavily criticized; however, I was purely focused on the price action and the structure of the SOL/ETH chart.

At the time, SOLETH had come back & retested the key zone that I’d been outlining throughout the 2nd half of 2024: the prior all-time highs and the mid-2024 highs.

I even shared, in advance, the potential for investors to take advantage of a “breakout, retest, rebound” setup on that exact range, once again, in an X post on December 4th:

Six weeks later, it’s clear that the analysis that I shared has played out to perfection.

Seriously, look at the SOLETH chart now:

What’s the lesson here?

• Ignore narratives.

• Focus on price.

• Trust that bullish setups will work during bull markets.

• Take action on bullish setups, then focus on managing risk.

This has served me well over the past several years, but especially over the past two years as I’ve tried to remove myself from the middle of the bell curve.

Of course, I still analyze the Fed and the various fundamental components that I added to the mid-curve section of this meme, but I only making trading decisions based on the chart and the price action of the asset in question.

It’s the exact same thing that I did when I rotated out of the Bitcoin miners in March 2024 in favor of MicroStrategy ($MSTR), which I already had a starter position in.

Since that rotation, MSTR has gained +168% while the BTC mining ETF ($WGMI) is up +60%.

There’s absolutely nothing wrong with a +60% gain, but there is when you had a chance to make +160% in basically the same asset with the same investment thesis (a bullish bet on BTC with a form of beta in the equity market).

Narratives can get investors into trouble, because they stay locked into losing investments, either on an absolute or relative basis, based on the “story” of the asset.

They put in a tremendous amount of work to understand the asset, the risks, the potential, and the story, which makes them unable to walk away.

That’s why focusing solely on price action is such a superpower for traders.

In the remainder of this report, I’m going to share the 16 individual charts and key datapoints that I’m primarily focused on in the stock market and for crypto. If you want to know exactly what I’m paying attention to and why, this is the report for you.

Let’s begin…