Things are getting exciting in the cryptoworld (again)…

New highs are being made in various altcoins (coins other than the well-known Bitcoin & Ethereum) every other day.

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TRACKRECORD DAILY

6 min readSep 7, 2021

Although the traditional assets are grinding higher slowly, the crypto currency market is going up in style. New highs are being made in various altcoins (coins other than the well-known Bitcoin & Ethereum) every other day.

Developments in the DeFi (Decentralisation Finance) space are happening at a torrid pace, and adoption is becoming more mainstream by the day.

Solana (SOL) Daily Candlesticks & Ichimoku Chart

Barely 3 weeks ago, we pointed out in our CIO weekly report that this break to new All-time Highs (the red arrow) in this SOL token was a significant break-out and a sign of things to come for the market, and today it’s trading at $173.

Things are beginning to get manic, and it seems like it’s just beginning. New ecosystems are popping up and making inroads. If you have been resisting taking this asset class seriously, you are wasting many asymmetric money making opportunities. For more of such trade opportunities, sign up for our community membership.

TRADING TIP

The Much Needed Breaks

In today’s world, many associate activity with productivity. This may be true when there are high overhead costs which requires a high turnover rate to generate revenue. However, that is not the same with trading.

Unnecessary activity in trading will deplete a trader’s mental capital which will affect his decision making and ability to stick to his trading process. As a result, overtrading and repeated episodes of losses may occur.

If you do find yourself in such a predicament, perhaps it is time to take a break and reassess your trades and reasonings for the trades that you are doing.

Sometimes, the best trade is to just stop trading.

DAY AHEAD

All eyes on the RBA later today. No change to their monetary policy is expected. Anything hawkish will prove beneficial for the AUD.

TRADING PLAN

1. Currencies:

Keep short USD and long NZD, & CNH. Quiet day in the currency market as it seems everyone was either off for the US Labour Day weekend or busy trading/staring at the manic moves in the crypto currency market.

2. Commodities: Uranium & Energy — These continue to outperform. Stay long and patient.

Key risks: Spread of the delta strain & comments from Fedspeakers which may affect the tapering timeline.

3. Equities:

Equity Index: Long Nasdaq futures. Pretty much the same as yesterday and likely for the days ahead. Stay long and patient. Look to buy dips on approach of support levels at 13950–14000.

Single Stocks: Things are getting exciting! Find out which addition to our TrackRecord Model Portfolio has nearly doubled in a matter of days!

Key risks : Spread of delta strain & the Fed tapering timeline.

WHAT HAPPENED YESTERDAY

Market movements as of New York Close 6Sep 2021

*US markets were closed for Labour Day. The currency market was contained in a relatively narrow range. US stock index futures crept higher with S&P 500 futures, Dow Jones futures and Nasdaq 100 futures up 0.24% and Russell 2000 Futures up 0.32% in continuation of the rally after Friday’s jobs number.

HEADLINES & MARKET IMPACT

Over 80% of oil output in Gulf of Mexico still offline a week after Ida

Notable Snippet: More than 80% of oil production in the Gulf of Mexico remains shut in after Hurricane Ida, a U.S. regulator said on Monday, more than a week after the storm made landfall and hit critical infrastructure in the region.

Energy companies have been struggling to resume production after Ida damaged platforms and caused onshore power outages. About 1.5 million barrels per day of oil production, or 84%, remains shut, while another 1.8 billion cubic feet per day of natural gas output, or 81%, was offline, the Bureau of Safety and Environmental Enforcement said.

COMMENTS/IMPACT: This is a headwind to the already acute oil supply constraint. Our basis for much higher oil prices remains intact.

Tiny chips cast big shadow over Munich car show

Notable Snippet: Cars have become increasingly dependent on chips — for everything from computer management of engines for better fuel economy to driver-assistance features such as emergency braking.

Automakers from U.S. group General Motors (GM.N) to India’s Mahindra (MAHM.NS) and Japan’s Toyota (7203.T) have slashed output and sales forecasts due to scarce chip supplies, made worse by a COVID-19 resurgence in key Asian semiconductor production hubs.

Just last week, Chinese EV maker Nio Inc (NIO.N) cut its delivery forecast for the third quarter due to uncertain and volatile semiconductor supplies.

Thematic Context: “Chip suppliers cannot keep up as software eats the world. This is a key theme going forward and some chip companies have the weight and influence of “Big Oil” companies like Exxon Mobil during the era of peak oil. More on this in the following snippet.” — 10th Feb 2021

COMMENTS/IMPACT: As we move into an increasingly multi-polar world, the reshoring of supply chains, logistics and manufacturing will be mega projects governments around the world will be working on and this will be funded by unlimited fiscal spending. In addition, domestic costs tend to be more expensive, feeding into our trajectory of high and sustained inflation in time to come.

EU sits on sidelines as US and UK court China on climate

Notable Snippet: While the United States and Britain ramp up efforts to wrestle with China on climate change, the EU’s top climate envoy is largely missing in action.

Ahead of a crunch climate summit in Glasgow in November, U.S. climate envoy John Kerry — who concluded three days of talks with China on Friday — and U.K. COP26 President Alok Sharma are trying to convince Beijing to shift its stance on coal and to peak its emissions earlier than 2030 as currently planned.

“As the biggest emitter in the world, responsible for a quarter of all emissions, what China does on climate action absolutely matters,” Sharma said as he flew to China on Sunday.

Thematic Context: “China understands (at least from a Macro policy perspective) the difference between Baseload Power (Traditional Energy and Nuclear) and Transient Power (Hydro, Solar, Wind). Their policies are well designed around baseload power sustainability as massive growth requires energy stability and the transition towards clean energy must not tamper with this stability. The only way to do that is to continue building out Traditional Energy plants, while concurrently constructing Nuclear plants to ensure a smooth transition when the time comes. As we have mentioned before, China and India are backstopping two of our biggest trades, being positioned for a Traditional Energy supply deficit and a Nuclear renaissance.” — 20th July 2021

COMMENTS/IMPACT: The transition to green energy is great, but no one talks about the “cost of transition” because it will first entail very high energy prices (due to lack of funding). In the meantime, traditional energy supply/demand imbalance will only be brought forward, leading to an interim bull (years) market in the traditional energy space. We remain heavily invested in this theme.