Risk-On Alert: Bet on Brrr of Election Promises

INTERNET, THE HOLY SEE — For the past three days, the Trading Desk has observed a liquidity influx with the 30-day change alert-trigger holding at +2%. According to the budget rule, The Treasury must reduce reserves and take on more risk.

Market Sentiment

Overall, the markets are experiencing the typical summer lull, with capitalizations sliding as expected during this period. Even the launch of the ETH ETF during the holiday season failed to spark interest.

Markets

US: The main event of the year has added new twists, increasing uncertainty in forecasts. Amid modest economic results and continuing negative signals, the primary Money Printer, in the heat of the election race, is flooding the market with promises and creative short-term solutions to prevent negative economic developments.

China: Faced with equally lackluster results and the threat of recession, The Dragon is taking a wait-and-see approach.

International Tensions: The Middle Eastern and European conflicts seem to be on hold. The former predictably awaits when its main ally can take unpopular measures. The latter publicly signals a desire to negotiate.

Conclusion

In the current conditions, the Trading Desk predicts an influx of liquidity into the markets to plug holes and hide ongoing problems. Viewing the cryptocurrency market as a proxy for free liquidity, the desk suggests exploiting the short-term situation and starting to build positions according to allocation rules.

Proposal and Trading Plan

Over the next two months, gradually build allocation in anticipation of a short-term market squeeze. Candidate tickers for position building (according to the CTI comparison rule): ETH, TON, and KUJI.

Metrics for closing positions: reaching target price points or the onset of uncertainty as election dates approach.

R/R Analysis

Risks: In a negative scenario, a reduction in the Treasury's capitalization (-11% downside) despite an increase in the balance of sanctified assets.
Rewards: In a positive scenario, an increase in the Treasury's capitalization (+42% upside) can be expected.

Holy See Decision

Approve the proposal and plan.

Reduce reserves to $3,000, allocating the remainder to the Trading Desk for implementing the proposal.

UPDATE 03/08/2024, KUJIRA NETWORK — The first transactions have been made.

871.72 USDC transfered to Trade Account. An allocation of 150 USDC was distributed equally among the target assets.

UPDATE 08/08/2024, KUJIRA NETWORK — Another batch of 150 USDC was allocated equally among the target assets.

UPDATE 15/08/2024, THE TREASURY — A veto is placed on any further Treasury allocation into the KUJI token.

UPDATE 20/08/2024, THE TREASURY — AKT joins BRRR portfolio; Desk evaluates entry points.

UPDATE 28/08/2024, KUJIRA NETWORK — Another batch of 150 USDC was allocated equally among the target assets.