Google to Solana Flip Today - up 4% in 10 hours (Patreon)
Content
The power of pair trading is to find undervalued assets (like SOL) and pair them with overvalued assets (Google) that have run out of upwards momentum. In this case, the target price for the pair is 1.35 over the next 18 months, representing a 4x return (5.38 / 1.35). I swapped at the equivalent of 5.38 today - Google $131 and Solana $24.35.
There were a lot of questions re this today. Here are some answers:
- I made the trade as I saw Google Topping out on IADSS and Mean Reversion.
- I saw Solana holding up real strong using the layers model and felt like I posted this at 7am this morning saying SOL was heading to $25.4 - but did not expect it to have an 8% move in 10 hours
- The pair was looking real juice and the trend was turning down
We will see if the plan works out.
Meta is the next asset I plan on moving. It is rallying hard in after-hours trading up to $320. I will keep you updated on my progress. I am focusing on sharing my thought process and multi-year forecasts well in advance so you can see how I approach the markets and how my long-term swing trading plans shake out.