Bitcoin’s Struggles, Metal Weakness, and Stock Picks
StatsEdgeTrading
Introduction Welcome to the weekend edition of the Market Wrap-Up with Michael Nauss at StatsEdgeTrading. Each week, we take a comprehensive look at the markets, covering stocks, options, crypto, and metals. If you're new here, check out our free trading course on our website. Without further ado, let's dive into the week's events.
Bitcoin Analysis
Bitcoin remains a central focus. On the weekly chart, Bitcoin shows a cup-and-handle pattern, struggling against resistance. Despite hitting this resistance multiple times, Bitcoin faces difficulties breaking through, leading to some sideways motion—a sign of digesting overhead supply. On the daily chart, Bitcoin repeatedly hits and fails at resistance points. Notably, a significant liquidation event caused a sharp drop, showing the volatility in the market. Full disclosure: I was long on Bitcoin but got stopped out during the sell-off. I plan to re-enter if Bitcoin reclaims the resistance area.
Ethereum and Other Cryptos Ethereum continues to underperform compared to Bitcoin. Despite the sell-off, Ethereum hasn't reached previous highs, indicating weaker performance. Other major cryptocurrencies follow a similar trend, with Bitcoin leading the market. It's crucial to use Bitcoin as a guide for the crypto market's direction.
Currency Overview
Aussie CAD: The anchored VWAP acts as a resistance point, and I'm shorting from this level with a stop above the recent high.
Aussie Yen: Displays a bearish engulfing pattern but is influenced by the Bank of Japan’s interventions, making it a challenging trade.
Euro Pound: I'm shorting this pair, targeting a breakdown from the support zone.
Gold and Metals Gold shows signs of a potential double top with tweezer top patterns on the monthly chart. Weekly analysis also suggests a pullback. I've liquidated my long gold positions and will look for re-entry points if the market pulls back further. Similarly, silver and other metals, including copper and steel, exhibit weakness, indicating a broader metal sell-off.
Stock Market Insights
S&P 500: Despite a minor pullback, the trend remains bullish. We should focus on the long side until the trend changes.
Berkshire Hathaway (BRK.B): Shows a potential bull flag, indicating strong performance in value stocks.
ARK Innovation ETF (ARKK): Continues to underperform, reflecting the market's preference for profitable companies over growth stocks.
Healthcare Sector (XLV): Displays a strong bullish candle, indicating potential upside.
Algos and Stock Picks
General Motors (GM): Identified by the breakout algorithm, showing a strong upward push.
ROOT: Selected by the anchored VWAP pullback algo, indicating a potential long opportunity with support near the current level.
Teva Pharmaceuticals (TEVA): Highlighted for its sideways consolidation post-earnings, showing strong support at the anchored VWAP.
Zscaler (ZS): Long-term holding above the anchored VWAP, showing potential for a significant upside.
Conclusion This week has been eventful, with significant movements in Bitcoin, a notable sell-off in metals, and strong performance in specific stocks and sectors. Make sure to stay updated by signing up for our email list at StatsEdgeTrading. Enjoy a well-deserved break from the screens, and we'll catch up next week!
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