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The Wolf Den #578 - The Parable Of The Talents

September 13 · Issue #578 · View online
The Wolf Den Crypto Newsletter
Welcome to The Wolf Den! This is where I share my ideas about the market, technical analysis, education and advice regarding trader psychology and emotional control. The newsletter is released every weekday and is completely FREE.
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In This Issue:
  1. The Parable Of The Talents
  2. Bitcoin Thoughts And Analysis
  3. Altcoin Charts
  4. Legacy Markets
  5. Starbucks Partners With Polygon
  6. Norway Explores Ethereum-Based CBDC
  7. Fidelity To Add Bitcoin Trading
  8. My Recommended Platforms And Tools
The Parable Of The Talents
Many of the basic tenets of finance have been universally accepted for centuries, passed down through the generations. One particular story, named, “the parable of the talents” comes from an unlikely source - the Bible. This tale teaches an important lesson on investing.
The story goes something like this.
A master was preparing to travel to a distant land, so he called upon his three servants to watch over his wealth until he returned home. Each of the three servants was given a specific number of talents (a large quantity of gold) to protect, according to their abilities. Servant one was allocated five talents, servant two received two, and servant three received one. The master left on his journey.
The first two servants put their money to work, investing the wealth to accumulate more. The third servant had other plans and dug a hole in the ground to hide his master’s wealth until his return. After a long journey, the master returned home, summoned his three servants, and inquired about the wealth that he had entrusted them with.
Servant one explained that he invested the talents, which doubled to 10 in total. The master responded, “enter into the joy of your master.
Servant two explained that he invested the talents, which doubled to 6 in total. The master responded, “enter into the joy of your master.
Servant three explained that he was afraid and hid the talent in the ground, returning the single talent. The master responded, “you wicked and slothful servant, give it to him who has the ten talents.
Perhaps a little harsh? Yes. But that’s the cost of being idle in a world that rewards investors.
Perhaps he should have used a more modern quote that delivers the same message… “scared money don’t make money.”
The parable teaches a valuable lesson - it pays to put your money to work, especially in a world with high inflation and taxes. We are extremely lucky to live in a time when markets are accessible and available to almost everyone.
Don’t be idle! Find courage and invest your money. The market will reward you with time.
And you won’t get beaten or slain by your master, which is a plus.
Bitcoin Thoughts And Analysis
Bitcoin successfully broke back above the 50 MA on the daily chart, a sign of potential strength. Let’s hope it holds!
Otherwise, very little to see on the chart for the moment.
Altcoin Charts
I do NOT share signals in this section. I share setups and charts that I am watching, in an effort to help show you how I view a chart and what criteria would be necessary for me to consider taking a trade. NEVER blindly buy something because it is listed in a newsletter or posted on twitter. You need to have a plan when you enter a trade. These are just ideas, and are almost always “if, then” scenarios. If a certain set of things happen, then I would consider a trade.
On my livestream yesterday I took a quick look at Ethereum, and mentioned that a retest of the blue 50 MA as support could be a nice entry for those looking to trade around the merge. Price dropped almost exactly to the line, so now it’s time to watch and see if it holds.
Any time a key level is flipped from support to resistance or resistance to support, watch for a potential entry on the retest. This is considered one of the “safest” approaches for more conservative traders.
The 200 MA is above at around $2000 - a reasonable target if you are trading this. Of course, this is just a guess like any other.
Notably, many altcoins are attempting to break through their 50 MAs, so they are worth watching.
Legacy Markets
Futures Rise, Dollar Extends Drop Before CPI Data: Markets Wrap - Bloomberg
US equity-index futures advanced ahead of key inflation data due later on Tuesday. Treasury yields dipped and the dollar extended a decline.
Here are some key events to watch this week:
  • US CPI, Tuesday
  • UK CPI, Wednesday
  • US PPI, Wednesday
  • US business inventories, empire manufacturing, retail sales, initial jobless claims, industrial production, Thursday
  • China home sales, retail sales, industrial production, fixed assets, surveyed jobless rate, Friday
  • Euro area CPI, Friday
  • US University of Michigan consumer sentiment, Friday
Some of the main moves in markets:
  • The Stoxx Europe 600 rose 0.2% as of 10:24 a.m. London time
  • Futures on the S&P 500 rose 0.4%
  • Futures on the Nasdaq 100 rose 0.3%
  • Futures on the Dow Jones Industrial Average rose 0.3%
  • The MSCI Asia Pacific Index rose 0.6%
  • The MSCI Emerging Markets Index rose 0.6%
  • The Bloomberg Dollar Spot Index fell 0.3%
  • The euro rose 0.3% to $1.0157
  • The Japanese yen rose 0.4% to 142.25 per dollar
  • The offshore yuan fell 0.2% to 6.9353 per dollar
  • The British pound rose 0.2% to $1.1711
  • The yield on 10-year Treasuries declined four basis points to 3.32%
  • Germany’s 10-year yield advanced two basis points to 1.67%
  • Britain’s 10-year yield was little changed at 3.09%
  • Brent crude rose 0.8% to $94.74 a barrel
  • Spot gold rose 0.1% to $1,726.68 an ounce
Starbucks Partners With Polygon
Starbucks brewing revolutionary Web3 experience for its Starbucks Rewards members
Starbucks is no stranger to crypto. In 2021, the company partnered with Bakkt to add Bitcoin payments and also experimented with blockchain technology to enhance its loyalty program. Neither attempt gained traction, but that hasn’t stopped Starbucks from trying to find its niche in the space.
Starbucks will be partnering with Polygon to integrate NFTs and a Web3 experience for customers. Dubbed “Starbucks Odyssey,” the initiative will offer members and employees the chance to “unlock access to new benefits and immersive coffee experiences in the digital world.
Participating customers can purchase limited edition NFT stamps in-store that offer unique rarity and points that unlock experiences. The idea sounds promising - Starbucks has already cultivated a collectors mentality in its community with its cups, so now they are pivoting digital.
Notably, “Starbucks will utilize a “proof-of-stake” blockchain technology built by Polygon, which uses less energy than first generation “proof-of-work” blockchains.” Perhaps this is foreshadowing further corporate disinterest in proof-of-work because of the environmental narratives.
Fidelity To Add Bitcoin Trading
Fidelity to offer bitcoin trading to retail customers: Reports
Fidelity has been quietly involved in crypto since the early days. Now the mammoth asset manager is planning to offer its retail customers direct exposure to Bitcoin.
Fidelity currently boasts over $4 trillion in assets under management and 34 million retail customers.
Norway Explores Ethereum Based CBDC
Norwegian central bank trusts Ethereum, credit goes to... - AMBCrypto
After months of testing multiple blockchains, Norges Bank, the central bank of Norway, has chosen Ethereum for their CBDC. Nahmii, an Ethereum layer-2 solution, has partnered with the central bank to handle the technical requirements. As of now, the source code of the project should be, “made publicly available soon” according to a Nahmii announcement.
The Future Of Solana | Anatoly Yakovenko
Podcast - The Wolf of All Streets
I finally had the opportunity to sit down with Anatoly Yakovenko, founder of Solana. We talked about everything: the centralization of Solana, how Solana competes with other layer 1 blockchains, and why it is crucial to cut the operational costs to boost adoption. We talked about security issues and how the upcoming release of the first Solana phone, Saga, solves them. We further discussed how Anatoly’s background in the Soviet Union led to his deep interest and passion in decentralized systems and Bitcoin. This is a well-rounded conversation with one of the leading minds of crypto.
My Recommended Platforms, Tools And Podcast Sponsors
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Follow me on Twitter at @scottmelker. This is where I am constantly updating my trades and sharing ideas.
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The views and opinions expressed here are solely my own and should in no way be interpreted as financial advice. Every investment and trading move involves risk. You should conduct your own research when making a decision. I am not a financial advisor. Nothing contained in this e-mail constitutes or shall be construed as an offering of financial instruments or as investment advice or recommendations of an investment strategy or whether or not to “Buy,” “Sell,” or “Hold” an investment.
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