Our last trade alerts were purchasing the Nasdaq near the lows around 6440 NQ and exiting half around 6640 ES – and slightly higher on Friday due to the completion of an ascending wedge with downside follow through. So we were able to capture some 200 NQ points. Of course, our position sizing on TQQQ could have been bigger – but nevertheless, we were able to stomach quite a bit of volatility and capture these 200 NQ points with profit for members.
Keep in mind we issued the Buy alert amidst Trump tweets Amazon – and Facebook being pulled into Congress to testify. Not easy to buy when sentiment is bad. In fact, after buying – the next morning the Nasdaq made an even lower low – but we had enough conviction to hold on and were able to capture the rally profits.
Bitcoin has been making a peek over the down tradeline after hovering around the $6400 for the first two weeks of April.
Perhaps with the tax deadlina approaching and some people are putting tax refund money into the crypto space. Or perhaps its rumors that George Soros – a big name in the currency trading space – has been rumored to potentially start trading bitcoin.
Or perhaps level of interest in crypto is hitting lows with all the regulation in place and the SEC subpoenaing a bunch of ICOs.
OWhatever the case is, there was a popup just recently in crypto land – significant enough to move the chart action above the down trend line. Usually when this happens, it may go back down to back test the down trade line before a rally moves forward. Many smaller cryptos have already staged some impressive bounces from the lows. Oftentimes, people say – the best time to buy is when nobody else is looking.
The S&Pwas positioned for a breakout – on Friday – after JP Morgan and Citi reported earnings – but the market decided to pull back instead.
We ended up forming a wedge up towards 2680 ES – but then pulled back significantly from there all of Friday. When an ascending wedge like this forms – usually it means we either drop for a big pullback – or we break out.
Since we did not break out – the drop could have been a sign of a deeper drop. However, the action in that last hour of trading on Friday – because of the strength of it – opens up the possibility that the bull move may not yet be over.
So at this point – as long as we hold and ideally do not retest the 2644 ES region, and instead continue to move immediately up – there’s still the possibility that the rally will happen.
On the other hand, if we open Monday with the markets below where we closed 2659 ES – then I would say we could be setting up for a deper drop towards 2622 ES before a bounce higher.
I wanted to show this zoomed up chart – because that rally in that last half hour of Friday afternoon trading is significant – because it forms an A-B-C zig zag that could save the bullish case – assuming it follows through into Monday.
The ascending wedge – completed with a i-ii-iii-iv-v formation – followed by what COULD be an a-b-c retrace as well as a strong bounce at the close. So at this point, it’s all about the follow through.
If you are new to crypto – the most popular place to get started is Coinbase – use this link to get $10 in bitcoin when you sign 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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