Bitcoin Dominance just hit new multi-year highs this week.
In other words, the market-cap of bitcoin as a percentage of total crypto market-cap is the highest it's been in years.
What this means is that the value of Bitcoin today (~ $1.2 Trillion) represents 58% of the value of all the Cryptocurrencies in the world (~ $2.1 Trillion).
And the trend here of Bitcoin continuing to eat into market share continues to move up and to the right:
Meanwhile, Microstrategy is hitting new highs relative to Bitcoin since it first started buying Bitcoin back in the Fall of 2020.
Microstrategy is the 5th largest owner of Bitcoin, holding about 1/4 of the position of Bitcoin's creator Satoshi Nakamoto.
Just to clear up any confusion, I am absolutely NOT Satoshi. I know it would be a lot cooler if I was. But I am not. Sorry to disappoint.
Now, what I love most about the Microstrategy $MSTR hitting new highs relative to BTC, and also hitting new All-time highs on an absolute basis, is that the "fundamental" guys can't wrap their heads around the premium that $MSTR trades relative to its total ownership of BTC.
Let's all raise our glasses for a toast to the outperformers of this bull market.
Ok, now let's get to work finding stocks setting up that will likely catch the next wave of rotating capital flows.
Today's trade is in a name that is slowly becoming a fixture at just about every eating establishment near me, and likely you too.
Here's a one-year chart of Toast Inc, $TOST:
By itself, this is a chart I Iike to buy. But Strazza shares a longer-term chart in the video above that displays the opportunity better.
$TOST is just now showing signs of breaking out of a multi-year base.
But when there is overhead supply to contend with, the breakouts aren't always as clean as we'd like them to be. So we will take advantage of options premiums at out-of-the-money strikes to help keep our cost of participation limited.
Here's the Play:
I like buying a $TOST March 30/40 Bull Call Spread for approximately $2.50 net debit. This means I'll be long the 30 calls and short an equal amount of the 40 calls. The most I can lose is the premium I pay today. And that could be a real possibility if we get a...
A couple of weeks ago, we talked about Silver futures attempting to emerge from a multi-year accumulation pattern and potentially retesting the former all-time high.
Last week, Silver made a new multi-decade high in absolute terms and broke a multi-year downtrend line relative to Gold.
And if the 47th element is about to blast off, we should look closer at the Junior Silver Miners.
But first, check out this chart of the Silver/Gold ratio:
Below is the 4th ASC Mastermind Lab Course. These are special videos that will be made available throughout the duration of the 12-week course featuring conversations with professionals from across Wall Street discussing topics in their expertise.
The theme of ASC Mastermind Week 2 is momentum trading, and why it works. So naturally it made sense for me to talk to All Star Charts Director of Research Steve Strazza. Steve uses momentum as much in his day-to-day as I do.
The main concept Steve wanted to hammer home is momentum thrusts, what they are, when they happen, the different types with examples, and how to analyze them.
We've had some great trades come out of this small-cap-focused column since we launched it back in 2020 and started rotating it with our flagship bottom-up scan, Under the Hood.
For the first year or so, we focused only on Russell 2000 stocks with a market cap between $1 and $2B.
That was fun, but we wanted to branch out a bit and allow some new stocks to find their way onto our list.
We expanded our universe to include some mid-caps.
Nowadays, to make the cut for our Minor Leaguers list, a company must have a market cap between $1 and $4B.
And it doesn't have to be a Russell component — it can be any US-listed equity. With participation expanding around the globe, we want all those ADRs in our universe.
The same price and liquidity filters are applied. Then, as always, we sort by proximity to new highs in order to focus...