Despite bad news from Boeing (BA) and some negative stories about the U.S.-China trade negotiations, the market continues to trade randomly in a narrow range. Breadth is good with some bounce in biotechnology, financials, semiconductors and FAANG names. The indices have been down four days in a row so some sort of oversold bounce is logical although the downside move has not been very extreme.
It has been a dull market lately with limited movement which has caused a number of traders to chase Bitcoin. Bitcoin fell sharply overnight for no specific reason which is a good example of what happens when you are trading something with no intrinsic value. There are no earnings, balance sheets, cash flow or any other metric that can be used to value Bitcoin. Its price is determined by emotion more than anything else.
There are obviously people convinced of the value of crypto-currencies and believe they are a relevant asset class but since there is no way to value it, there is no choice but to trade it purely on a chart basis.
I bought some Grayscale Bitcoin (GBTC) this morning on the sharp dip, simple because I think bored traders will continue to be attracted to it and will probably produce another run. I can't think of any other reason for buying it but that is good enough for me.
As a trader, I am a slave to price action. If I think I have some sort of edge I'm willing to trade an asset even if I think it has no real intrinsic value.