ONE-TWENTY TWO: Trading Financial Markets
Since the year 2000, delivering a different narrative for students and fans of financial markets: stocks, options, currencies, Bitcoin, and more…
At the time of typing, a steep sell-off continues in Bitcoin (BTC/USD) and Ethereum (ETH/USD). Typically, I would jump in and accumulate some more of either or both cryptocurrencies. However, after I took a step back to review the charts, I realized Bitcoin and Ethereum are in precarious positions with support melting away. Both cryptocurrencies … Read more
Bitcoin Boring Bitcoin (BTC/USD) was pretty boring until this past weekend. After neatly failing at resistance from its 200-day moving average (DMA) in late March, BTC/USD settled back into what was starting to look like an extended trading range. However, the pressures of the bear market and a soaring U.S. dollar (DXY) proved too much … Read more
Back in October and November, Bitcoin (BTC/USD) created renewed excitement when the cryptocurrency challenged its all-time high and then set three new all-time highs. Unfortunately, the breakout turned into a fakeout. Bitcoin peaked with the NASDAQ (QQQ) in November as financial markets moved away from aggressively priced risk assets. However, a more sustainable bottom may … Read more
Stock Market Commentary The stock market indices enjoyed an impressive year. However, weak and declining market breadth produced numerous exceptions to the strong performance of indices and ETFs. A number of important and well-known individual stocks corrected, collapsed, and crashed in 2021. For some, the tailwinds of the pandemic ran out. For others, investors tired … Read more
Stock Market Commentary The stock market rebounded out of oversold trading conditions but ended the week in ugly fashion. The combination produced fascinating snapshots of an ugly oversold bounce. Expensive growth stocks are rapidly falling out of favor while a convergence of negative headlines and uncertainties is painting plenty of ugly all over the stock … Read more
Stock Market Commentary The upward drift in the stock market continued another week. The latest narrative comes from the cascading impact of the infrastructure bill settled in the Senate (I feel like the U.S. has passed this bill 10 times already!). While more wrangling lies ahead in the House of Representatives, the stock market felt … Read more
The Bitcoin bottom from a month ago continues to hold. However, the latest bounce off the Bitcoin (BTC/USD) bottom is dangerously different than the last one and the bottoms prior. Once again, Google search trends for “Bitcoin” is the key signal. Unlike the bottom in May where the Google Trends Momentum Check (GTMC) provided another … Read more
Google trends provides a measure of the popularity of Google search terms. The data can indicate relative popularity and interest in a topic. I use the search on “Bitcoin” as a trade indicator called the Google Trends Momentum Check (GTMC). During my checks on the GTMC, I noticed for quite some time the African nations … Read more
As someone who watched too much of this year’s crypto run-up from the sidelines, I welcome the recent implosions of Bitcoin (BTC/USD) and Ethereum (ETH/USD). These top cryptocurrencies are inherently extremely volatile, so sharp and deep corrections are features not bugs for crypto traders. As long as these assets enjoy a broad fan base of … Read more
Stock Market Commentary The growth tantrum is almost a distant memory. Complacency is more the order of the day as the volatility index sinks further below 20 and the S&P 500 (SPY) hops and skips through all-time highs. Big cap tech is popular again. These stocks are helping to drag both the S&P 500 and … Read more