The Slow Grind Higher
StatsEdgeTrading
Welcome to the Friday Market Finale, where we wrap up the week in stocks, crypto, and Forex, touching on what happened and what we might expect next. This week, I’m continuing to see promising signs in Bitcoin and some surprising strength in small caps, which could indicate a "risk-on" environment.
Bitcoin's Cup and Handle: Primed for a Breakout?
For a few weeks now, I’ve been talking about Bitcoin's cup and handle pattern, and it’s still intact. It feels like it could explode any day, which is why I’ve got some automated orders set. I’m also watching Solana closely, as it's showing a similar pattern, but it hasn't broken out like Bitcoin yet. This could be one to watch for next week.
Small Caps: Leading the Way
While the S&P 500 had a relatively quiet week, small caps (IWM) showed strength, breaking out of their recent range. This could signal a rotation out of large caps and into smaller, riskier stocks. If this trend continues, I’ll be looking for opportunities in the small-cap space.
Forex and the Strong Dollar
The DXY (Dollar Index) continues to defy expectations with its strength. While I initially expected a pullback, the dollar has been on an almost unprecedented 15-day rally. While I’m not trading directly on this thesis, if any of my Forex algorithms signal a short dollar trade, I’ll be ready to take it.
Key Takeaways:
Bitcoin’s cup and handle pattern could lead to a breakout, so keep an eye on automated orders.
Small caps are showing strength, indicating a possible rotation toward riskier assets.
DXY continues to show strength, but I’m on the lookout for a potential reversal in the coming weeks.
For more detailed insights and trade ideas, check out StatsEdge Pro. We’ve got a lot of great setups, and I’ll be sending out a weekend wrap-up to all our members.