SC Weekly – Markets are Mixed

 

Overview:

The purpose of this article is to provide some insight into potential upcoming trades and portfolio management across several markets.

Cryptos:

The crypto market is simply boring right now, and the issue with day trading these instruments is the noise as we saw on Sunday morning. Since there is no centralized exchange and until the environment improves trading here is considered risky.

I happen to be watching the order book when the pullback happened, and there was a gap in orders from 3690 to 3590.  This could be due to the exchange filling the book with small orders to give the appearance of liquidity when there is little.   This allows for wash trading and manipulation, if not on Coinbase on other non-regulated exchanges.  Just something to be aware of and another reason trading with no trend is risky.

With that said it is following the broader recovery structure of gold, which implies we are getting near to the end of the cycle.  We are looking at adding a position trade in the near future on two instruments here.

Stocks:

The rally continues, but even strong rallies take a break.  One thing we monitor is social media and trading groups.  The reason we monitor is a gauge of market sentiment and last week as we pushed to 2630 in the S&P everyone and their brother was shorting.  As the market pushed through this areas many were squeezed, however the 2670 area is the next level of resistance, and we are looking for a short trade.

 

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