July 25 Premarket – Bitcoin, the Opportunities, and Like Everything in Markets, It is Supply and Demand

More new highs in BTC since my discussions about the “breakout above 6900”, at the recent 8500 highs, up 25% since the breakout line – huge move, many setups, several opportunities for you. I discussed the potential bottom well in advance, what it should look like. I discussed the breakout. I gave symbols to trade. After that, all of this stuff I do here, it is out of my hands.

The stocks have surged, they have been discussed recently, in detail. Many opportunities for 20%+ trades. RIOT is discussed again here in this new trading post by Stevie. MGTI, DPW, MARA, RIOT discussed here, you should have been well aware of the opportunities. And to repeat, for every crypto stock that I watch, not one of them has a long-term bottom structure in place. These are pure traders, and many crypto stocks are still heading much lower later on.

BTC, breakout, reaccum, flat base, base-on-base, trend absorption, angling up, solid green volume on the breakouts, SOSes. All of these, if you are working hard, you will be able to recognize them. These are all markers, and setups in an uptrend, on breakouts. But look at the 60 minute chart, the biggest red volume since the low:

 

MGTI, first the PS, the SOSes, setting of the top of the reaccum (flat base) area (breakout area), huge green volume breakout, beautiful “back into the top of the old range retest/reaccum”. You should be well-versed in all of this, and be able to recognize the opportunities:

There is an article and video at CNBC about AMZN. The host is totally incompetent, of course. And the 2 overpaid analysts are wildly incompetent. They are just now coming to the conclusion about something which I started discussing last year. Truly remarkable. Last year and since, in posts and conference calls, I have said – what AMZN is doing to retailing, by knocking out the weak companies, it is making the sector STRONGER, it will not kill all the retailers. The ones left will be in a much stronger position. For months, I discussed that the stocks are putting in major bottoms, the earnings will turn around, and the stocks will be going to new highs. I put several retailers on my 4/2 list, discussed that specifically on 4/2, the group has been one of the strongest this year. I have discussed many other retailers since 4/2. Those have done great also. So many opportunities. And now the Wall Street geniuses are finally figuring it out.

Does anybody understand what Ricardo, Smith, and Say, centuries ago, taught us about supply and demand. And why do so few people anymore understand that everything about markets and trading is based upon one thing – supply vs demand?

From 4/2:

I’m going thru charts, pondering, studying earnings, considering sectors, looking for what will be the leaders coming out of the “correction” in the market. Those specialty retailers I’ve been discussing, also some oil stocks with crude in that big accum area, and some green tech stocks. Also tech and IPOs. And the ones with relative strength. I will go more in depth with these, put them into sectors, but some ideas for now.

BFAM, RSPP, MEOH, VIPS, VNOM, LE, LULU, URBN, AEO, ANF, GES, CTRN, M, NWY, PEN, TEAM, DBX, FIVE, FND, SQ, SGH, WHD, IQ, FUSZ, AMAG, ETFC, INSM, MU, ETSY, CREE, INTC, OBE, LOXO, CLNE, GWPH, ARQL, WDAY, CLDR, EC.

Since 4/2, LULU, ETSY, AEO, NWY, M, FIVE, LE all have gone to new highs, or new all-time highs. And the always right on the ball Wall Street analysts are catching on. So Wall Street, way after my discussions about it, has finally decided that all retailers are not going to be killed by AMZN. But in the meantime, I have been warning for a few weeks that the IWM, with a lot of retailers in the index, is overdone relative to the DJI, and there will be a rotation. And yesterday the IWM took a hit on increasing volume. My 4/2 list has mostly IWM-type stocks on it. They will be affected, as I have been posting about for a few weeks.

 

On 7/2, I discussed the rotation potential:

The DJI has been lagging all the way from the 2/9 #2 EA low. The DJI did go to a lower low on 4/2. That was the day I posted my stock list. That list was filled with retailers, IPOs, cloud stocks and energy names. Since then the retailers have been one of the strongest sectors in the market, along with cloud-based stocks, and energy. The IPOs were very strong, but as discussed weeks ago – they got “too hot”. Retailers have also had a big run, new position trades, to me, need a bit of a reset.”

FB, PYPL, GRUB all have earnings out later. FB is a market mover. PYPL discussed a few months ago, and has gone to new all-time highs since then. GRUB discussed numerous times, since last summer, more than doubled.

What to look for –

FB expectations are for earnings to be up 33% and sales up 44%. Their Instagram video and image sharing app will be parsed for its growth. The stock, as discussed, really extended.

PYPL, very fast growing sector in digital payments, is expected to see both earnings and sales up 22%.

GRUB expected to see a surge in earnings and sales, lofty expectations, up 46% on sales and 58% on earnings.

 

 

 

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About traderscott 1146 Articles
Trader Scott has been involved with markets for over twenty years. Initially he was an individual floor trader and member of the Midwest Stock Exchange, which then led to a much better opportunity at the Chicago Board Options Exchange. By his early 30’s, he had become very successful in markets, but a health situation caused him to back away from the grind of being a full time floor trader. During this time away from markets, Scott was completely focused on educating himself about true overall health and natural healing which remains a passion to this day. Scott returned to markets over fifteen years ago where he continues as an independent trader.

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