Time To Buy The Dip In China?
StatsEdgeTrading
Welcome to the Friday Market Wrap-Up, where I analyze the weekly market action, identify emerging trends, and prepare for the week ahead. This process combines systematic trading with discretionary analysis, ensuring a well-rounded approach to trading.
Weekly Recap Highlights
Bitcoin’s Surge: After years of forming a cup-and-handle pattern, Bitcoin has broken out, reaching highs around $95,000. I took partial profits just under $100K, anticipating potential resistance from widespread selling pressure at the psychological level.
Ethereum’s Struggles: Ethereum continues to underperform relative to Bitcoin, showcasing significant weakness. If I were bearish on crypto, Ethereum would be my target for shorting.
Gold’s Pullback: Gold has retraced to a significant support zone and is aligning with anchored VWAP from prior highs. This area will be on my radar for potential entries next week.
Stock Market Trends:
The SPY pulled back into a critical support zone after last week’s election-driven rally. This consolidation phase could provide a launching pad for further gains if support holds.
QQQ has shown slightly more weakness, with next week’s Nvidia earnings likely to dictate short-term direction.
IWM (Small Caps) and FXI (Chinese stocks) are approaching critical support zones. If signs of support emerge, these areas could provide buying opportunities.
Notable Sector and Currency Moves
Yen Weakness: The USD/JPY pair is showing potential signs of topping out after a strong rally. A bearish engulfing candle on the daily chart suggests a possible reversal.
Dogecoin Froth: Dogecoin’s speculative surge highlights frothy market conditions. I’ve been locking in profits on overextended names.
Uranium Tightening: Uranium forms an anchored VWAP pinch pattern, signalling a potential breakout. If resolved to the upside, this could reignite interest in uranium-related stocks like CCJ or SMR.
Discretionary Trade of the Week
Alibaba (BABA): After a six-week pullback, BABA is revisiting a critical support zone near $88. If signs of buyer strength emerge, this could be a compelling discretionary trade idea for next week
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