Yesterday I pointed out that the Russell 2000 was at support, the “January effect” was set to kick in, and the market tends to rally after Powell tells it everything is going to be OK.
But if you paid attention to the open, you saw that markets went deep into the red. The support level I pointed out didn’t hold … But there’s an old saying in the market, “Amateurs open the market, professionals close it.”
The chart and the season were topped off with a catalyst. As I stated yesterday, “It doesn’t get much better than this.” After the Fed meeting, markets roared back to life. My position in TNA is doing quite well this morning.
Also, bitcoin is also coming back to life. Last year it broke out to new highs (above $20,0000) in mid-December and doubled by mid-January. The timing of that rally aligned with the “January effect” quite well. This is a sign that bitcoin is gaining more acceptance, especially from the pros.
No changes for me today, I’m still risk on and still extremely bullish. I’m still holding SEV, VRAR, and LTRY. VRAR is part of a very hot theme and appears to be bottoming … I added to my position yesterday.
FHTX has resistance at $19, support at $16
SEAC has resistance at $1.80