Crypto and legacy markets have traded together for some time now. Apart from the recent lack of volatility in the former, it's all been one market.
We don't need to overcomplicate this.
Just look at the ratio of the High Beta ETF $SPHB against the Low Volatility ETF $SPLV overlaid with Bitcoin since the onset of the pandemic. They look pretty similar, right?
We debuted a new scan recently which goes by the name- All Star Momentum.
All Star Momentum is a brand new scan that guides us toward the very best stocks in the market. We have incorporated our stock universe of Nifty 500 as the base this time around. Among the 500 stocks that we follow, this scan will pump out names that are most likely to outperform the market.
The trend for bonds has been lower for two years, the trend for stocks turned South earlier this year and the trend for commodities rolled over last week.
Why It Matters: If the past pattern holds, the next trend change will be for bonds to turn higher. It’s hard to envision that with so much upward pressure on yields (in US & around the world). But if there is an unloved and under-owned asset, its bonds.
In taking a Deeper Look we look at why it may still be too early to get aggressive on bonds even though that is where we are likely to see leadership emerge.
One of the most valuable tactics I’ve learned in my career is the ability to capture a strong trend as it’s trending.
I’m not talking about FOMO buying or blindly chasing breakouts.
In my experience, buying strong trends requires patience and discipline.
Today, exercising these two key traits is especially necessary if you're trading the explosive US dollar.
Navigating the latter stages of the dollar rally presents challenges, particularly in dealing with heightened volatility. However, it doesn’t mean we can’t join in on this trend responsibly as it barrels down the tracks... or, in this case, up them.