Crypto’s Pain, Your (Eventual) Gain

Hey There Income Hunters,


Bitcoin’s tough scene was the story of the week.


In fact, the big boy of crypto has now moved into a bearish technical setup.


That’s just how it is when you start breaking the 200-day moving average.


 But don’t be fooled — Bitcoin and crypto writ large are here to stay. 

It’s simply that the path to ultimate success isn’t linear.


The incredible technology and the freedom — in the form of decentralization — that crypto represents are too powerful a draw.


Plus the train to mainstream acceptance — by businesses and governments — has already left the station.


As with any investment vehicle, #IncomeHunters need to be vigilant for opportunities and the right time to strike. Stay tuned to Power Income for that!

 ***

Elsewhere there was plenty more interesting news this week in commodities, EV and fund flows.


Commodities

      • Once again, China was the culprit in a selloff of hard commodities. While Beijing is talking tough about cracking down on higher prices, the Chinese are in hoarder mode.

 

China’s Belt and Road initiative is going to continue to demand tons of materials, so for #IncomeHunters this pullback is an opportunity to buy…

 

      • As I wrote this week, I am keeping an eye on the Global X Copper Miners ETF (Ticker: COPX). Check out the 50-day moving average below …

 

This is the third correction since the November uptrend, and the 50-day MA has held both times …


I think it will again — and I will buy just below at $38.50 with a stop below $36.


EV


Ford (Ticker:F) showed off the electric F-150 this week and received awesome reviews. Option Pit DC and Wall Street insider Frank Gregory was certainly impressed. 

What about the stock — buy or sell? I think the only thing holding F back is production cuts due to the annoying global chip shortage


However, there is a good risk/reward setup. Let’s take a look …


The breakout above the 50-day MA is very solid, with great volume — but it may fall back a bit after failing to take out the $13.62 level.



Funds 

 

Finally, let’s take a look at SPDR S&P 500 ETF (Ticker: SPY) and the VIX.


The other big story this week was, “Where to next?”


The market is confused right now …


I am not.


We are in a bit of consolidation before we explode higher again.


There is so much cash sitting on the sidelines — in banks and at the Fed — and I think the economic and employment numbers will get better in the next couple of months.


I’m a stock bull …


The VIX keeps coming back to the 20 level and I think it has to finish a bigger move down to 15:



Bring It Home


As #IncomeHunters, we have to shut out the noise.


The money flows and the macro picture will give us the answers. The Fed is going to let inflation run and we still have massive stimulus coming.


I sense a wild melt-up trade is on the way …


Stocks have followed the money and so should we. A fully reopened economy is around the bend with another couple of trillion en route.


Next week, I’ll go deep on cannabis stocks — an area gearing up for a big run on big cash and less regulation….


Until then …

Live and Trade With Passion My Friends,


Griff

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