CleanSpark, Inc.Long
“4” reasons to go long CLSK
Updated
I went long CLSK again - at 12.3175 at the close today. Since this summer when I started posting ideas, I've made 5 trades in CLSK and made an average of almost 13% per trade and those 5 trades averaged under 3 days in length (all verified in ideas I've posted here).
The miners are such a gold mine when it comes to how I trade. One of the keys for the average person when it comes to the miners is to look in the “minds” for the stock. When everyone there starts complaining about conspiracies, criminality, or changing their mind back to “this thing is garbage” 2 weeks after they were gleefully shouting “to the moon” and posting rocket emojis, you know it’s getting close to time to buy 🤣.
Seriously, though. My algo says it’s time to buy and you know I don’t question its judgment. But if you just look at the chart, there are a few other things that also poke you in the ribs and whisper “buy itttttt”.
1) Uptrend - the regression channel here makes it obvious, butCLSK has been in an uptrend since the beginning of September. The trend is your friend until it ends - and it hasn’t yet.
2) Higher highs and higher lows. Part of the uptrend thesis, but until this closes below 9.80 (an over 20% loss from here), the uptrend is intact.
3) Minor (no homonymous pun intended) support at 11.40 from the low of the gap up candle.
4) Finally, 4 consecutive down days. Going long after 4 down days in a row has been an incredibly quick and reliable payoff for quite some time now. You’d have to go back to September of 2022 to find a 4 down day buy that didn’t pay off in under 3 weeks. In fact, it has only taken even 3 weeks 2x since then. The most common payoff is 1 day, and almost all have been less than a week since Sept. of ‘22. I’m all about the quick payoff and I’m expecting this one to be as well.
Per my usual strategy, I'll add to my position at the close on any day it still rates as a “buy” and I will use FPC (first profitable close) to exit any lot on the day it closes at any profit. Depending on the situation, I may sell calls as well since the premiums on miner options are just ludicrous.
As always - this is intended as "edutainment" and my perspective on what I am or would be doing, not a recommendation for you to buy or sell. Act accordingly and invest at your own risk. DYOR and only make investments that make good financial sense for you in your current situation.
CLSK again - at 12.3175 at the close today. Since this summer when I started posting ideas, I've made 5 trades in CLSK and made an average of almost 13% per trade and those 5 trades averaged under 3 days in length (all verified in ideas I've posted here). The miners are such a gold mine when it comes to how I trade. One of the keys for the average person when it comes to the miners is to look in the “minds” for the stock. When everyone there starts complaining about conspiracies, criminality, or changing their mind back to “this thing is garbage” 2 weeks after they were gleefully shouting “to the moon” and posting rocket emojis, you know it’s getting close to time to buy 🤣.
Seriously, though. My algo says it’s time to buy and you know I don’t question its judgment. But if you just look at the chart, there are a few other things that also poke you in the ribs and whisper “buy itttttt”.
1) Uptrend - the regression channel here makes it obvious, but
CLSK has been in an uptrend since the beginning of September. The trend is your friend until it ends - and it hasn’t yet.2) Higher highs and higher lows. Part of the uptrend thesis, but until this closes below 9.80 (an over 20% loss from here), the uptrend is intact.
3) Minor (no homonymous pun intended) support at 11.40 from the low of the gap up candle.
4) Finally, 4 consecutive down days. Going long after 4 down days in a row has been an incredibly quick and reliable payoff for quite some time now. You’d have to go back to September of 2022 to find a 4 down day buy that didn’t pay off in under 3 weeks. In fact, it has only taken even 3 weeks 2x since then. The most common payoff is 1 day, and almost all have been less than a week since Sept. of ‘22. I’m all about the quick payoff and I’m expecting this one to be as well.
Per my usual strategy, I'll add to my position at the close on any day it still rates as a “buy” and I will use FPC (first profitable close) to exit any lot on the day it closes at any profit. Depending on the situation, I may sell calls as well since the premiums on miner options are just ludicrous.
As always - this is intended as "edutainment" and my perspective on what I am or would be doing, not a recommendation for you to buy or sell. Act accordingly and invest at your own risk. DYOR and only make investments that make good financial sense for you in your current situation.
Note
Of course, none of those trades above was followed 5 MINUTES LATER by the announcement of the sale of over half a billion dollars worth of dilutive convertible notes...gonna have my work cut out for me now.Trade active
Added lot 2 at 12.0375 at the close.
Lots held
Lot 1: 12.3175
Lot 2: 12.0375
Note
Reason #5 - short interest in CLSK doubled Wed-Fri of last week on the 2nd highest short volume since April on Friday. The convertible debt news is in the rear-view mirror now, so I expect no major other downside catalyst. Meanwhile, 
BTCUSD is knocking on the door of an ATH on Sunday. If 104k-ish resistance doesn't hold, a push higher in BTCUSD may push out those shorts depending on how far and fast it runs.
Some of the CLSK shorts made 20% in a week last week on the news, so they may cave easily and TP if that ATH in
BTC comes soon. Or...they could double down on those shorts at the new ATH. Not the brightest move, imo, but I've seen stranger things when it comes to shorting. My gut says they cut and run to some extent, at least, if Bitcoin bullies its way higher, though.
Eventually, though, shorts always take profits unless they believe it's going to zero, so I just need to wait longer than they do until something forces their hand. I only need one good up day to make what I'm looking for. Unless Bitcoin collapses, which I can't even begin to formulate a hypothesis as to why that would happen any time in the time frame I expect to be in this trade, I'm comfy holding and adding to this position when appropriate. Just my two cents on all that.
Note
wow, just like that...3 hours later and BTC has jumped about 2.5% since I wrote the note above. Now that it is bullying its way higher, this could be an interesting night and an even more interesting Monday.Trade closed: target reached
Leave it to these last couple of weeks to make a win feel like a loss. I cannot even begin to count how many times I've had stocks go from intraday profits to end of day losses or not be able to hold onto solid gains only to close with a tenth or two profit. Very frustrating. Even this trade, which is one of the best for me in the last 2 weeks, was kind of disappointing.
Literally almost everything I thought would happen with this trade happened (see above), except that it couldn't hold onto its nearly 10% intraday gain and closed up less than 4%. I sold both lots at 12.5125 just before the close for gains of 1.6% in 2 days and +4.0% in 1 day. Those are both great trades for most stocks but the average of them makes them a below average trade in CLSK. It is what it is, though, and better to be up on those trades than down. Still...what could have been.
Note
Trade summary for my records
Wins 2
Losses 0
Average gain per lot = +2.8%
Average holding period per lot = 1.5 trading days
Average gain per lot per day held = +1.87%
Annualized return = 1.87% x 252 trading days = 471%
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