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8/30/23 Bitcoin is Back

News:

Markets logged another day of buying on Tuesday. 

Risk-on assets performed especially well as a U.S. Court dealt a blow to the SEC and paved the way for a Bitcoin^ ETF.

From Getty Images
  • The price of Bitcoin has surged about 7% since the ruling
  • Crypto-related stocks outperformed during Tuesday’s session

The whole market enjoyed a broad rally. The indexes all closed the day with sharp gains.

  • Dow Jones +0.9%
  • Nasdaq +1.7% 
  • S&P 500 +1.5%
  • Russell 2000 +1.4%

Sector Round Up

All of the 11 sectors ended the session in positive territory. Once again, risk-on stock led.

At the top…

  • Consumer Discretionary (XLY) +2.5%
  • Communications (XLC) +2.2%
  • Technology (XLK) +2.0%

Risk-off stocks were at the bottom…

  • Utilities (XLU) +0.4%%
  • Consumer Staples (XLP) +0.4%
  • Energy (XLE) +0.3%

The groupings above are exactly what bullish investors want to see … High-risk stocks delivering big rewards and low-risk stocks delivering small rewards.

Technicals: 

The S&P 500, one of the best measure of the broader market, is pointing higher.

SPY Daily Candle – Chart by thinkorswim

Yesterday’s rally alleviated oversold conditions and completed a local breakout. A look at the one-year chart makes the August selling look insignificant.

Our outlook remains bullish, but we’re not ready to start buying yet.

Your latest readout…

Timing:

Legendary investor Warren Buffett turns 93 years old today.

  • Buffett became a billionaire at the age of 56
  • His current net worth is about $120 billion
  • The ideal holding time for a stock, according to Buffett, is forever

Watch your inbox for your complete September guide tomorrow morning. It’s not a bullish month.

Watchlist:

*Low Float
^Open Position

*HOLO support at $8
*TSAT support at $18
GRPN support at $12
PFIE support at $2.40
REKR support at $3.50
ESTE support at $19
TIGR support at $4.50

Secondary watchlist—float 100+ million

MREO support at $1.40
TSHA on watch
PGEN support at $1.75

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