They teach you this stuff at technical analysis kindergarten.
Buy support.
Sell resistance.
Of course, in the real world, with our primitive monkey brains, implementing this into a trading system is easier said than done. Just take a look at the squeeze you're seeing in real-time in all these beaten-up growth stocks.
The permabears started shorting these names in droves when they'd already slumped into 90% drawdowns.
Talk about a reckless strategy...
When we look at the most heavily shorted stocks, Coinbase stands out with a short interest of almost 30%. With clear levels and a favorable risk/reward, we leaned on COIN as a vehicle to profit from the short squeezes taking place in recent weeks. We're seeing them all over.
Seriously, go through some of these charts.
Carvana, Tesla, and AI are all great examples -- these moves are no joke. Bed, Bath & Beyond was up over 90% yesterday!
When people ask us what's been happening in the world of crypto, this is the chart we show them.
Bitcoin -- and crypto more generally -- has been a big nothingburger for over a year. Especially with Bitcoin trading below its prior cycle highs, there was absolutely nothing to be done in this asset class.
Another positive week -- add it to the growing tally!
This is the first time Bitcoin's been up for four consecutive weeks since August 2021. Similarly, Bitcoin's 14-day RSI eclipsed its highest level going back more than two years.
We have a name for this price action...
Momentum thrusts.
We see them all the time in the beginning stages of new trends.
There's no denying that this move has been impressive. In fact, we'd even argue that it represents a structural shift in this market.
With Bitcoin $BTC and Ethereum $ETH reclaiming their prior-cycle highs, we even went as far as arguing that this recent move represents a structural regime shift for the asset class.
In our view, both the short and intermediate-term trends have now definitively shifted higher.
This comes within the context of a slew of risk-on developments in traditional markets.