The Underachievers: Nasdaq & Bitcoin

May 10, 2021

We've been talking about this rotation out of Growth Stocks and into Value Stocks since last year. The trend here has been very strong.

We keep seeing this all over. Check this out for more.

Another chart that stood out this weekend was the number of new 52-week highs on the NYSE, which has much more exposure to value and much less growth.

Meanwhile, the Nasdaq, which is almost all Growth, isn't seeing these new highs at all.

No one wants them.

I've been hearing since last year how this is just a short-term rotation and they'll be buying growth stocks again in no time.

But the data continues to suggest the exact opposite.

To me, this trend was here to stay for a while, and all the data coming in keeps proving that thesis to be correct.

Maybe it will change soon. And maybe someone will deliver 20 lobster tails to my front porch today.

Those things can happen, I suppose. But there's no evidence that they will and I certainly would not be betting on them.

Cryptos Surpass Fiat!

This chart stood out this week.

How could it not?

If you're wondering if this Crypto thing is going away, here's example #1,618 on how it probably won't.

Cryptos are now worth more than all the Paper Currency in circulation:

The top 7 Crypto Currencies are all worth more than $50 Billion EACH, with Bitcoin, of course, still over $1 Trillion and Ethereum pushing $500 Billion this morning.

These are real assets, folks.

So if you're not long, you're short.

If you're not in, you're betting against it at this point.

Is this what you want to bet against? Uptrends that ignore Fibonacci extension levels?

In my experience, when markets ignore these extensions, that's bullish. The less they acknowledge these levels, the stronger the trend.

At this point, if we're above 3600, ETHEREUM is still a long with the next target up around 5700, and then 9200 after that.

The other day on the podcast, Bianco mentioned how Ethereum can overtake Bitcoin in market cap.

I'm a natural skeptic and always like to take, or at least consider, the other side. But I have a hard time disagreeing here.

The trend right now in ETH/BTC is up and to the right.

Who am I to fight that?

It doesn't seem like these things are going away.

To be clear, I don't care either way. I don't have any ulterior motives. It really doesn't matter to me if these things go to the moon or all go to zero.

I just want to be on the right side of it.

And it's become quite obvious this year that if I'm not in it, I'm short it.

Fortunately we've been in. And so far through today's data, I'm not seeing any reason to NOT be in it.

If/when you see Ethereum holding below 3500, then we can potentially have a conversation about a whipsaw and the end of this move. But that's not what's happening.

Again, I like to take the other side right? This is me taking the other side. Talk to me about being bearish IF we're below 3500.

We're not though.

Check out my entire DeFi conversation with Jim Bianco here.

Get Caught Up!

In case you missed it, make sure to check out our latest Young Aristocrats report where we dive into the leading stocks that have raised their dividends every year for between 5-9 consecutive years.

We also put on a Put Ratio Spread on the Nasdaq100 $QQQ last week. You can find those details here.

Last week was our live Monthly Conference Call, which lays out everything on our radar and gives you everything you need to know: Stock ideas, International Market analysis, Commodities and all the Intermarket Relationships we need to keep an eye on right now.

And of course, if you want to skip right down to the trade ideas, you can always find those here.

What got your attention this weekend? Any interesting charts stand out?

Shoot 'em over. We love to hear from you!