Zooming Out: A Monthly Market Reflection

StatsEdgeTrading

The Importance of Perspective

Whether you're day trading, swing trading, or investing, the daily market movements can easily consume all your attention. That's why, at the end of each month, I advocate for zooming out to the monthly charts. It's a simple yet effective way to gain clarity and make informed decisions.

This Month's Highlights

• Bitcoin's Surprising Rally: Against my expectations, Bitcoin has hit new all-time highs. This development has been beneficial for my holdings in crypto-related assets like Mara and Coinbase, proving that surprises in the market can sometimes work in your favor.

• Gold's Bullish Signals: The monthly chart for gold shows a significant bottoming tail, suggesting a bullish outlook. This pattern indicates potential for upward movement, making gold a commodity to watch closely.

  

• The Dollar's Stalemate: The dollar index (Dixie) appears to be in a consolidation phase, stuck in a range without clear direction. This holding pattern is something to keep an eye on for potential shifts in the market.

Trade Ideas and Insights

• ETF Analysis: A look at ETFs like SPY, MDY, and IWM reveals overall market strength, with SPY hitting new highs and MDY marking a new all-time monthly closing high. IWM, while not at all-time highs, shows breakout potential.

  

• Sector Focus: TAN (solar energy) and XBI (biotech) ETFs are on my radar for different reasons. TAN is at a critical juncture, while XBI has broken out of its resistance range, signaling growth potential.

• A Word of Caution: UNG (natural gas) has reached new monthly lows, reminding us of the risks of trying to catch a falling knife. It's a stark warning against bottom-picking in downtrends.

• Uranium's Potential: After a period of consolidation, URA (uranium ETF) is showing signs of readiness for another upward move. This scenario highlights the value of using broader market trends to inform tactical trading decisions.

Closing Thoughts

Thank you for joining me in this monthly market review. Your engagement through likes, comments, and shares is greatly appreciated.