Bitcoin Trades Above $18k Intraday; Market Is About To Sink

Three months ago, on August 10, 2020, I wrote an article bringing your attention to GBTC, a bitcoin ETF. At the time, GBTC was establishing a base at $13. I said, "I think within a few months, GBTC will test that $20-$22 range. This could be a good hedge against the market." Since then, bitcoin has been climbing, and today it hit above $18,000 intraday, which brought GBTC above $20:


While GBTC has been shooting up higher, the over all market has been volatile and trading sideways. Even though major market indices made new highs a couple of days ago, the new highs were not by much, and they looked "stretched" (meaning it took a lot of effort just to get there), and the market closed in the red today, Wednesday:

Today's closing action really was not good. Take a look at the intraday actions in SPX:


The market immediately traded lower after open, but, residual buying drove it up again. However, there was a volume spike on the selling midday, and the selling strengthened in the last 45-30 minutes.

So, be very careful on Thursday and Friday. This market is extended. NVDA reported great earnings and gave a fabulous report, and yet, its stock fell in the after-hours. This gives us a warning signal on the overall market conditions.

Gold and silver may need sometime to consolidate. Bitcoin can continue to go higher if it clears $18k; for GBTC, watch the resistance level between $20-22. So, I raised cash today. It may be time to gear up to play the downside. VIX spiked at the close today. Keep an eye on VIX and UVXY. UVXY has a resistance between $15-$16, above which things could get interesting.

Good night and HappyTrading! ™

Read More
Comments

Bitcoin Is About To Breakout! GBTC

A couple of weeks ago, I wrote about buying silver and recommended some silver-related stocks and ETFs. We started trading silver when AGQ was under $30. It has since more than doubled and closed recently near $70; it ended ...

Read More
Comments

Time to Buy Silver! AGQ, SLV, AG, SILEF, SIL, SILV

It's been a long while since silver is attracting attention from average buyers. Most people turn to buying gold whenever there are major geopolitical uncertainties. With the COVID-19 pandemic running rampant, especially during the recent months in the US, Brazil, ...

Read More
Comments

US Stock Market Futures Tumble!

As of now, the Dow futures are down more than 330 points, while SPX futures are now more than 40 points.

It looks like SPX may be testing 1800 soon, and, we could likely see SPX at 1700 sometime in ...

Read More
Comments

World Markets Tumble, As Oil Stays Weak!

World markets tumbled again on Monday, as oil continued to fall lower. Sanctions were lifted on Iran and Iran boosted its oil output! At the same time, Saudi Arabia is not looking likely to decrease its production.

Just ...

Read More
Comments

Oil Going Lower!

In August 2015, I wrote an article, titled "It's Time to Migrate Out of Oil". Oil is now approaching the $30 mark and USO is single-digit! Solar stocks have recent jumped. This trend will likely continue.

As I ...

Read More
Comments

Stocks With Near-Term Upside Potential

There are some stocks that we have not been trading for a little while, but, seem to have drawn a bottom, or are in the process of bottoming. The markets have been volatile this week, and, we have not been ...

Read More
Comments

Weekly Wrap-Up + Market Forecast + Sector Watch: SPX, Nasdaq, BTK, FAS, XLE, IGV, CELG, BIIB, AGN, PFE, CRM, AMGN, GILD, SPLK, GS, WFC, JPM

Markets bounced strongly last week, practically erasing losses from the week before. The broad-based rally was led by the financials and the internet stocks. Financials pushed higher as a December rate hike became more likely. GOOG/GOOGL made a new all-time ...

Read More
Comments

Weekly Wrap-Up + Market Forecast + Sector Watch: SPX, Nasdaq, BTK, FDN, FAS, XLE. GOOG, AMZN, BIIB, CELG, AMGN, GILD, EOG, SLB, PRGO, MYL, V, MA, GS

Markets fell sharply last week. On Monday, things started to slid. Then, stocks traded in a narrow range on Tuesday and Wednesday, mainly between 2070 and 2080 on the SPX. Stocks broke down on Thursday, with SPX closing below 2050. ...

Read More
Comments

Weekly Wrap-Up + Market Forecast + Sector Watch: SPX, Nasdaq, BTK, FDN, FAS, XLE

Markets fell sharply last week. On Monday, things started to slid. Then, stocks traded in a narrow range on Tuesday and Wednesday, mainly between 2070 and 2080 on the SPX. Stocks broke down on Thursday, with SPX closing below 2050. ...

Read More
Comments

Weekly Wrap-Up + Market Forecast + Sector Watch: SPX, Nasdaq, XRT, BTK, FAS, SOXX, BRCM, AVGO, SWKS, QRVO, AAPL, CELG, AMGN, BIIB, GILD, AMZN, BABA, PCLN

It was a volatile week, but, the markets managed to push higher. Monday and Tuesday were strong, continuing from the rally inspired by BIDU and LNKD's earnings. However, we saw profit-taking on Tuesday afternoon that spilled into Wednesday and Thursday's ...

Read More
Comments

Weekly Wrap-Up + Market Forecast + Sector Watch: SPX, Nasdaq, XRT, BTK, FAS, SOXX

It was a volatile week, but, the markets managed to push higher. Monday and Tuesday were strong, continuing from the rally inspired by BIDU and LNKD's earnings. However, we saw profit-taking on Tuesday afternoon that spilled into Wednesday and Thursday's ...

Read More
Comments