Believe it or not, for the past few weeks, the opportunity has been in the stock market and less so in the crypto markets. For what seems to be too long, the stock market has been just stuck and not moving. If you look at the size of each candle in the last month – the height or width of each candle — and you compare the size of the daily movement to what it was 6 months ago – you’ll see a big difference.
The stock market is finally actually moving now – before it was just inching up and up and up – making it extremely difficult to trade or see patterns.
But now we actually see the market make some movement and volatility is in much healthier levels. So let’s hope this level of volatility keeps up.
For crypto, we recommended a buy of bitcon @ $8,000 and Ethereum @ $800 — now bitcoin is @ $11,500 and Ethereum at $865. The recommendation that didn’t do well was EOS – which we are down on.
But the timing of our buy recommendation was on Feb 7 – just 1 day after what appears to be a longer term bottom in the crypto markets, assuming they don’t get tested again in the near future.
The bitcoin chart is appearing much stronger. I am a bit disappointed in the ethereum chart as it hasn’t shown the same resilience as the bitcoin chart in the last few weeks. I’m starting to question this concept of flippening where ethereum is supposed to overtake bitcoin.
Based on price action, it looks like bitcoin is still the winner.
The S&P has formed what looks like a textbook Elliott Wave pattern.
Notice the similarities between the chart above and the theoretical diagram below.
If this is the case, then the market should be bullish this week. If it stalls out for any reason, then we could turn back down towards end of the week. But from the looks of it, the market appears to be in position for a move up.
For smaller cryptos, I’ve been using Binance – though I’ve been having issues verifying my identity with them. So far it seems to be one of the better platforms for getting exposure to various cryptos.
Robinhood has $0 trade commission for stock and will soon have it for cryptos.
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