Was That The Top?

StatsEdgeTrading

A Glimpse into Bitcoin’s Behavior

Starting with Bitcoin - oh, the ever-so-volatile Bitcoin. A flag breakout followed quickly by a pullback is not the pattern we like to see, but hey, let's not hit the panic button just yet. The long-term chart's still intact, and the world isn't ending. Bitcoin’s known for its long periods of dormancy and sudden spurts.

Trading Strategies for a Restless Bitcoin Market

As traders, adaptability is the game. Set interesting levels, place stop limit orders with corresponding stop losses, and take profit, then simply walk away. Patience is key - sometimes you’ll be thrown around by volatility, but that's part of the crypto charm.

Ethereum’s Struggle and the Rise of TRX

Ethereum - not looking as robust as Bitcoin, having faced repeated resistance but is managing to hold the anchored VWAP from all-time highs. A consolidation and upward nudge would be interesting to watch.

However, from the roundup of other cryptos, TRX (Tron) caught my eye:

Potential Rounded Bottom (Cup and Handle?)High-level Consolidation

TRX made its way onto my watch list, so I'll be keeping a close eye there.

The Mighty Dollar Index (DXY) and its Ripple Effects

DXY showed some resilience with a 'hammer candle' formation around support levels, signaling a possible bounce. Most dollar-related currencies will likely show some opposing movement, but no expectation for a race to new heights just yet.

The Macro Impact on Currency Pairs

Keeping tabs on various currency pairs, like Aussie Yen and Euro Pound, we must watch for patterns like the Wyckoff distribution and evening star setups. These indicators may signal potential movements, providing short or long position opportunities.

Precious Metals and the Equities Market

A Golden Opportunity?

Gold - it persists above its prior resistance, which now serves as support. A break through the present wick could trigger short stops, potentially setting the stage for a significant move.

S&P 500 and Stock Market Dynamics

Spying on SPY - reaching all-time highs and then a slight retreat, but seeing a bit of a correction isn’t a disaster. A modest pullback to around 455-460 before a renewed ascent wouldn’t surprise me.

On the flip side, the IWM (small-cap stocks) looks more discouraging after failing to maintain its high, which could be more indicative of its inherent volatility.

Exploring the RSP (equal-weight large-cap stocks), it showcases relative strength, suggesting a leadership shift in the market - beneficial for us stock pickers.

The Dow Jones' interior week, marked by little change, reflects ongoing industrial strength, possibly driven by healthcare performance with UNH leading the pack.

A Peek at Energy - Crude and Natural Gas

Natural gas is showing signs of life but still needs to prove its mettle. Conversely, oil, with successful support tests and hammer candle signals, might be steadying for another rally.

The Financials and Other Sectors

The XLF (financial sector) is going strong, a positive omen for the broader market. If financials are thriving, chances are the rest of the market might follow suit.

Global Shifts and Specialty ETFs

China continues to struggle, potentially bottoming out, while solar energy, via the TAN ETF, can't seem to break resistance, reiterating the notion that weakness tends to persist.

Stock Picks for the Week

Let's highlight some individual stocks that I find immensely interesting:

• BOWL: Bowling is not just fun; it's also trading. With an intriguing chart setup and a significant short float, this is one to watch.

• NU: New Skin Enterprises breaking out, showing appeal, especially in a market that’s pulling back.

• AMRX: Amneal Pharmaceuticals, Inc. displaying a bullish flag pattern; a continued upward movement could be inviting.

These are just a few names that defy current trends, making them particularly worth monitoring closely.

And remember to keep balance in life - step away from the screens and enjoy your day!