Disclaimer: this is not investment advice. Some of the content in this email is generated with the help of artificial intelligence. For the love of all things robotic, please do your own due diligence.

—

GM. I’ve added a new section today “₿ Bitcoin Bot” which uses ChatGPT’s code interpreter to conduct technical analysis on bitcoin price (using price data every 3hrs for the past month).

What’s the purpose? A lot of people say that the limiting factor for traders is human emotion, so I want to see if AI can outperform when this is not present. I’ve asked ChatGPT to decide if they would “buy” or “sell” Bitcoin right now and to provide supporting analysis with a stop loss and take profit.

Why Bitcoin? Bitcoin does not have a strong practical use case (yet). Similar to gold, most the demand comes from investors and market speculators. As such, technical indicators such as momentum should be some of the main factors driving the price (as appose to fundemantals which impact many other assets).

If you would be interested in analysis like this for any other assets, click on the “how was today’s post” poll at the bottom of this newsletter and let me know

— Reuben

————— 🤖 🤖 🤖 —————

 💸 In Today’s Newsletter

————— 🤖 🤖 🤖 —————

📰 What’s moving Markets?

• China reported weaker economic growth than expected yesterday, with GDP growth at 6.3% in the second quarter, missing expectations for 7.1% growth. This led to Wall Street analysts marking down forecasts for China's economy. This has led to Morgan Stanley and JPMorgan economists cutting their projected growth to 5% this year.

• The S&P 500 and Nasdaq rose 0.39% and 0.95% on Monday, but stocks elsewhere around the world were negatively impacted by China's weaker growth. The Hang Seng Index continues to drop today, down c. 2% in this morning’s trading.

• Index futures point towards US and EU markets opening flat today.

• Oil prices fell from c. $77 to c. $74 (WTI Crude) yesterday due to concerns over demand following the disappointment in China's rebound from the lifting of COVID-19 restrictions (GDP growth miss)

• USD continues to fall against all other major currencies with the USD index is now at 99.70.

• UK and Eurozone are both being released tomorrow with markets expecting the rate of inflation to ease slightly across both regions.

• BoA, Charles Schwab and Morgan Stanley announce earnings before the US open today while GS, Tesla, ASML, Netflix and IBM are amongst the anticipated companies announcing earnings tomorow.

————— 🤖 🤖 🤖 —————

📊 Chart of the Day

The USD Dollar index plummets to its lowest level in over a year.

USD Dollar Index

————— 🤖 🤖 🤖 —————

₿ Bitcoin Bot

ChatGPT would sell bitcoin right now based on the below technical indicators.

1. Moving averages (MA10 and MA50): The 10-period moving average (MA10) is below the 50-period moving average (MA50), indicating a bearish trend. The price is also below both the MA10 and MA50, further supporting the bearish trend.

2. Relative Strength Index (RSI): The RSI is below 50, indicating bearish momentum. However, it's not in the oversold territory (below 30), suggesting that there might still be room for the price to go down.

3. Bollinger Bands: The price is near the lower Bollinger Band, which could suggest that Bitcoin is oversold. However, the price has been hugging the lower band for a while, indicating strong bearish momentum.

4. Moving Average Convergence Divergence (MACD): The MACD line (blue) is below the Signal line (red), which is a bearish signal. The gap between the two lines also appears to be widening, suggesting increasing bearish momentum.

5. Stochastic Oscillator: The %K line and the %D line are below 80, suggesting that Bitcoin is not in the overbought territory. However, they are not in the oversold territory either (below 20).

6. On-Balance Volume (OBV): The OBV has a slight downward trend, indicating that volume on down days has been higher than volume on up days. This is a bearish signal, suggesting that selling pressure has been stronger than buying pressure.

7. Volume: There is no clear pattern in the volume data.

Given the bearish signals from our technical indicators, the trading strategy would be to sell Bitcoin at the current price, with the expectation that the price will continue to decline.

ChatGPT would place a take profit at 5% lower and stop loss at 3% higher

• The latest closing price of Bitcoin is approximately $30,049.49.

• The stop loss would be set at approximately $30,950.97, which is about 3% above the current price.

• The take profit would be set at approximately $28,547.02, which is about 5% below the current price.

We will be back tomorrow to see how this trade would’ve performed.

————— 🤖 🤖 🤖 —————