MarketSurge powers the charts in this video.
The Nasdaq 100, the S&P 500, Bitcoin, and Nvidia reached new all-time highs last week.
Bitcoin has been setting up near its all-time highs for multiple weeks. It finally broke out. I participated with a position in BITX, which I bought in anticipation of the breakout. Other major cryptocurrencies have also been coiling up ahead of the so-called “crypto week” in Congress. Are we going to see another “buy the rumor, sell the news” event, or FOMO will take over? I am prepared for either.
In the meantime, we have seen some distribution occurring in quite a few momentum stocks. We are seeing more fake breakouts that lead to immediate reversals, as well as more fake breakdowns that lead to quick recoveries. Overall, there’s an increasing number of leaders in a pullback mode. This might be part of the usual sector rotation we see during bull markets. The protectionist and on-shoring policies have been bullish for US steel, copper, aluminium, rare earth metals, drones, and energy companies. The market is still acting as if the new tariffs are a temporary bluff to get a better trade deal, but what if the market is wrong? After all, tariffs were the reason behind the 26% correction in the Nasdaq 100 earlier in the year. We will pass that bridge when we get there. The price action hasn’t given us any reason to turn strategically bearish yet. It is still a buy-the-dip in the strong themes environment.
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