There's only one thing you need to know about Bitcoin miners. That is, they're essentially long Bitcoin's price, short the hash rate, and short electricity prices.
Wonder why publicly traded Bitcoin miners have been laughable? It's because all these three are moving in the completely opposite direction.
One of the things that continues to really stand out to me is the relentless outperformance in Energy stocks, even in the midst of a major correction in Crude Oil.
You can see it perfectly in this chart. Energy stocks today are making new 52-week highs relative to Crude:
I don’t care what your favorite TikTok financial guru says: Trading isn’t easy.
The market has made this point again and again this year.
The market has also driven home another essential truth: Trends persist.
I talk about this approach quite a bit because I’m a trend-follower. It’s my favorite Dow Theory Tenet, and it's the foundation of my approach to the markets.
Trend-following might sound simple. But it’s far from effortless. Like any worthwhile philosophy, real-world applications can sometimes be a struggle.
In fact, no other market has tested my trend-following resolve quite like this year’s unstoppable dollar. And I’m still looking for opportunities to get long…
Mortgage rates are soaring and housing market conditions are deteriorating. Sentiment is sour in both the financial markets and the economy.
The Numbers: Expectations for home selling conditions are at a level that have been seen leading up to, through, and in the wake of the financial crisis. This isn’t an isolated report and its both sides of the market. Data from the University of Michigan shows that the fewest survey respondents since the early 1980’s see this as a good time to buy a house (and that was prior to the most recent spike in mortgage rates).
Why It Matters: Economic sentiment, whether on buying houses or CEO confidence, is usually self-fulfilling. This may seem to be at odds with the idea of using sentiment as a contrarian indicator, but it isn’t all that different. We can look at past sentiment extremes to gauge the possibility that moods have moved too far, but it takes bulls to have a bull market in the same...
It's that time of the quarter where we options swing traders need to be extra mindful of pending earnings releases. The last thing we want to do is place a directional bet in a stock or it's options heading into a binary event that could decapitate us in a heartbeat.
This is frustrating us right now because most of the charts we like best (both the bullish and bearish ones) are in stocks with earnings slated to be released in the next week or two.
During our morning Analyst meeting today, we discussed the fact that many of the banking/financial sector stocks have already reported earnings by now, therefore, this is a place we should look.
Specifically, we like the big money center mega/multinational banks that are represented best by the $KBE ETF. Here is a chart that paints a pretty good picture of why we like it: