Let's jump right into it. First off, Bitcoin and Ethereum have certainly proven to be exciting lately. I chronicled an Ethereum trade in a recent video, a position I've been progressively adding to. In terms of Bitcoin, I've participated in the recent breakouts that have led to a decent run.
Right now, taking a disciplined approach and holding these positions is the strategy. It's well-known that Bitcoin often lays dormant for extended periods, only to erupt in flashes of frenzied activity. This is where we want to position ourselves.
Ethereum, while also on a slight upturn, hasn't had the strong trend of Bitcoin. Hence, I'm more inclined to hold Bitcoin longer, especially given its current outperformance.
Note: Remember the importance of trailing stops. Market rallies, such as what we've seen in Bitcoin, can become incredibly volatile.
The Rise of Helium and Dollar Reversal
Moving on, we're seeing interesting activity in other markets as well. Helium, previously a big name in the last crypto cycle, is currently rocketing skywards. While no specific entry point has emerged yet, it is certainly worth our attention moving forward.
In contrast, we've seen the Dollar Index achieve a nice reversal after repeated dips. This downturn might deliver some possibility for investment, as depicted by the Euro/USD.
Currencies: Euro and Pound Sterling
When observing the Euro, the chart reveals a tag on the anchored VWAP six days in a row, suggesting a potential bounce. In contrast, the Pound Sterling against the Dollar is showing relative strength - down for just a few days and far removed from the anchored VWAP - raising my interest in this currency pair.
Other points worth observing are the Euro/Yen with its recent surge, and the US Dollar/Yen which has been on the backfoot for some weeks, but now seems to be bouncing from the anchored VWAP.
Gold: A Wicked Rally Reversed
One last observation in the currency space is Gold. After an impressive rally, Gold quickly reversed its course. The upside here is that if it bounces again, there's potential for a lucrative trade.
SP 500: Waiting for a Breakout
Moving to the SP 500, we're in a state of suspense as the market continues to oscillate in its range between two highs. It delivered a choppy performance last Friday and today, but until there is a clear breakout in either direction, it's best not to risk volatile stock trading.
Exciting Prospects: FTDR and Meta
Lastly, I have two names on my watchlist. FTDR, which has been hugging right under its base, and Meta, currently at the anchored VWAP and showing signs of a breakout.
Both these stocks offer the potential for favorable risk-reward trades. Especially for Meta, the risk is small — around 5 to 10 points — considering the potential 20 point upside if it regains the level of 320.
Conclusion
That's a wrap for this week's midweek market outlook.
For the weekend review, sign up for the StatsEdgeTrading email list if you haven't already. With a bit of luck, we'll see a market breakout that will create new opportunities. Remember, particularly for new traders, it's essential to take advantage of quiet market periods to focus on other tasks and ensure you're not forcing yourself to act prematurely in a stagnant market.
Thanks, as always, for joining me. I'll see you next time
