Contra Signals
I love getting trading signals from unlikely places. That’s why I value and respect my contras so much. A good contra is worth their weight in gold.
I remember back in May 2021, while I was having dinner in Cyprus and our waiter wouldn’t stop talking about sh*tcoins.
My alarm bells started ringing. First of all, the conversation reminded me of JP Morgan’s anecdote that he exited the Market once his shoeshine boy turned bullish.
Secondly, a waiter in CYPRUS that was all-in sh*tcoins, was even more cause for concern since Cyprus is an island in the middle of the Mediterranean and far away from the speculative frenzy of Wall Street.
Back then, I tweeted out this encounter, for the benefit of future Market historians (and for giggles!).
What happened afterwards was even funnier:
Ethereum collapsed by 50% in a couple of months! (PS I’m using ETH as the proxy here for reasons that will become apparent later).
It’s worth noting that Ethereum recovered back to new highs by Xmas 2021 … then dropped EVEN lower …. and then they made it all back again ….
… and here we are today, and I just got another wild Contra Signal!