Little Old Lady Report

If you’ve followed Brian Beamish and TRi at all you’ve more than likely heard about the Little Old Lady risk management strategy.  It’s a core component of our education program and a great long term investment strategy that is highly effective if only you have the patience and discipline to implement it. It’s a hands off strategy that requires you to leave it alone while letting your money work for you. The joke around the site is that Little Old Lady is off playing Canasta and she doesn’t want to have her broker Brian calling her up all the time and bothering her about her investments. She simply accumulates names at the bottom of the range and patiently waits for that asset to double in value. When that opportunity comes, she sells half of her stake and establishes a free position. After that it’s just rinse and repeat, always pulling her original capital back out and reinvesting it. This can greatly add up over time both with cash profits and free stock.

Brian started the TRi crypto LoL portfolio with $500 in 2015 and to date has pulled a few hundred thousand dollars in profit out of it while also building up a substantial number of free positions in alt coins. His DOGE free position alone was worth six figures at the top of it’s recent run up. The strategy works and many of us at TRi have been able to use it with a great deal of success. 

So what is Little Old Lady up to now? Well the last year has been good for this strategy starting in the small cap stock market last year and continuing into alt coins. The covid panic sell off created a great opportunity for anyone willing to step up and buy. Many doubles were had in both stocks and alt coins. Some of our big stock winners were even blockchain stock names like MARA and RIOT.  Alt coins also enjoyed quite a rally starting in DeFI but also on the general alt coin market. LINK, ZRX, FIL and XTZ are a few that come to mind that I got multiple doubles on. 

Of course during the entire rally you heard Brian and the rest of TRi squawking DON’T CHASE, DON’T CHASE, DON’T CHASE. Little old ladies certainly had no business buying up top. The key to LoL is buying this stuff at a discount when it’s practically being given away. This also means that when prices are being bid up you just have to sit on your hands. If you weren’t buying last year at the bottom you just have to wait until the opportunity presents itself again. The good news is the recent sell off in both crypto and small cap stocks has gotten us a lot closer to levels where Little Old Ladies can start getting interested again. 

I’m starting to see prices at respectable levels down in reload zones which is what every little old lady wants to see. In some cases there’s momentum divergences and even some market structure in the form of both W and inverted head and shoulders. EQOS is a stock I’ve purchased recently that has a nice confirmed MACD divergence and a market structure W. It’s already moving nicely and not a good idea to chase up here but I could see buying pullbacks and Wychoff checks of the W breakout. 

 

 

Another one we’ve been interested in is YVR and you can see a similar MACD divergence and a W in price but this one is still sitting below the W breakout level. Location is also great here down against the lows and below the .886 fib level. This was an NFT play from earlier in the year that I established a free position on and I also just reloaded a 2nd car down here at $1.84.

 

 

In crypto land I’m seeing a similar situation although in my opinion small cap stocks are looking a little bit better at the moment. Brian has recently decided to do a public youtube show over the next month or so called the TRi Top 100 Crypto Review. He’ll be going through the top 100 coins by market cap one by one so make sure you tune into that for an in depth view of alt coins. There’s bound to be some valuable information there as he shares his view on the market with everyone. 

LTO is an alt coin favorite of TRi that Brian mentioned today in our Daily Brief Recap show https://youtu.be/Wm_dm28pp8A . It’s in a really nice location and has a W working in price but I’m only seeing a potential MACD div at this time. At any rate I think it’s sitting at a level that appeals to little old ladies. 

 

 

In Conclusion

The only issue with a bottom coming in right now is the seasonal window we are in. Have we gotten through the sell in may season of the market and are we ready to bottom here? Brian likes to point out that really we should be looking for this bottom after the July 4th weekend so that suggests that we’re still a little early. To me that makes a lot of sense and my main concern is that this bottom right now could be a fake out and there may be another puke out to the downside that sets up the real bottom for a summer rally. If you’re a true little old lady then you are taking small nibbles and you may even want lower prices so you can add to the trade. Either you should consider this potential fake out and use your own analysis to determine whether or not you think this bottom is in on the stocks and crypto you’re following. 

 

As always, this if for edutainment purposes only and is not financial advice. Happy trading!

-Kevin