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Crypto Surprise and Stocks Possibly Crawling Up

Markets were closed yesterday for the holiday, so our normal “Money Mondays” is being released today on Tuesday this week.

  • All eyes on Bitcoin: price surged up $4,000 last week
  • Are we truly headed towards a recession? Will unemployment really get as bad as the big banks think it will?

S&P 500 / $SPY

  • We’re still looking for the SPY to break out of this downtrend
    • A breakout here would confirm a period of accumulation / prolonged headwind – I’m not sold on a bull run in 2023 yet.
  • RSI is trending into a pennant with the print currently favoring overbought levels
    • This means we’re likely to see a correction in price to the downside, possibly testing “Target Support Area No. 1” in the shaded area again.

Nvidia / $NVDA

  • The right shoulder of the inverse Head & Shoulder pattern appears to be completed.
  • We should expect some slight volatility to the downside as the daily RSI print is favoring overbought.
    • That’s nothing too concerning – I’m still expecting a general move upward in the following weeks.
      Any dips here could just be additional buying opportunities.

MGP Ingredients / $MGPI

  • Last week we identified a hidden bullish divergence on MGPI
    • This week I’m expecting price to move up to possibly test the previous high before the end of this Spring.
  • Failure to make a higher-high will result in a head and shoulders topping pattern – in which case I’ll turn bearish and look for lower-lows.

Bitcoin / $BTC

  • On a lower-time-frame, Bitcoin formed an Adam & Eve pattern – usually a sign of a bottoming structure
  • Zooming out, we can also see a Cup & Handle formation where we should expect to retest the neckline within the next week or so, presenting some buying opportunities for my long portfolio
  • This is not to say the bottom is in – anything is possible, but this strength in price action may suggest that we’re continuing this period of accumulation in the bottom range.

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