3/28/22 Risk On!

News:

On Sunday afternoon, before today’s futures began trading … Bitcoin^ smashed through two key resistance levels. First the psychological $45,000 then the 200-day moving average just shy of $46,000.

And the breakout happened on relatively low volume…

Bitcoin Daily Candles – Chart via Barchart

The message to me is clear … no one is selling.

On Friday, Jim Cramer declared the bear market over.

The Wall Street Journal dropped a report outlining how “The Riskiest Bets in the Stock Market Are the Most Popular.”

On the war front, Ukraine has gone on the offensive outside of Kyiv. A Marine I served with a lifetime ago wrote this article describing some of the key reasons Russia has failed to take Ukraine. It’s worth the read click here if you’re interested.

Technicals:

The Dow and the S&P 500 both broke out above local resistance on Friday.

Buyers pushed the Nasdaq up to close near flat … it looks bullish too.

The Russell 2000, represented by the chart below is the only one lagging behind.

IWM Daily Candles – Chart via thinkorswim

But I see a possible cup and handle forming, the bottom of the handle could provide a risk level for a trade. I’m considering a position in ticker TNA to trade this trend.

The put-to-call ratio, RSI levels, and the VIX all have a neutral or bullish stance.

Timing:

Historically April is the strongest month of the year, but it also ends the “best 6 months.”

As I stated on Friday, this year there may not be a summer lull.

As far as I’m concerned markets are clear to move up over the summer. I expect the next source of volatility to come from the mid-term elections.

Mid-term years are often great years for bottom pickers.

Watchlist:

*Low Float
^Open Position

*SES has resistance at $10
^*AGRI has resistance at $4
^*SGLY has support at $10.50
^RKDA has support at $2
FLNG has support at $26
EIGR has resistance at $10
NEXT is on watch
VYGR is on watch
DLNG is on watch
RADA is on watch
LXU has support at $22
^GLNG is on watch
ALLG has resistance at $20
TELL, EQT, & SWN are high float energy stocks also on watch.

Leave a Comment

Your email address will not be published.