In today's Flow Show, me and Steve Strazza took a look at some potential directional bets, but we both agreed that the right trade for today is one that would benefit from some sideways trading action.
With the broader markets looking a bit indecisive here, making a strong directional bet (in either direction) feels like a high-risk proposition. But there's a big cap name currently stuck in a range that is offering us nice options premiums to bet on further sideways action. We'll likely have to hold through an earnings event to earn our profit, but with a defined risk and a large margin for error, I like our chances.
There is a big theme going on right now - and that's the inability for important indexes to get above their 2021 highs.
You're seeing it at the individual stock level, you're seeing it across specific sectors and industry groups, and you're definitely seeing it in the S&P500 and Nasdaq100 Equally-weighted.
These indexes below eliminate the excessive weightings in certain stocks and sectors and equally-weight all of its components.
Look at both of them still stuck below their 2021 highs:
Cryptocurrency markets experienced a downturn this weekend due to geopolitical tension.
I believe there's no advantage in reacting to such headlines; if anything, they provoke emotional decision-making and obscure our capacity to rely on market trends. Remember, it's the flow of money that generates profit, not rumors and narratives.
Undoubtedly, geopolitical tensions have affected cryptocurrency markets, reinforcing my view of a "chopsolidation." Nevertheless, I'm also positioning myself for a short-term rally.
Every week, we create a Power Rankings table that lists the market-cap rank of the top 20 cryptocurrencies. This allows us to see the winners and losers as they climb the market-cap ladder.
We've built a proprietary scan that notifies us whenever a cryptocurrency exceeds a certain market-cap threshold for the first time. When there's an up and coming cryptocurrency, we're the first one to know about it.
This scan flags breakthrough cryptocurrencies, allowing us to capitalize on lucrative opportunities before they become mainstream.
It’s easy to overlook while gold shines and silver rips. But during the last commodity supercycle, platinum traded at a premium to the famous shiny yellow rock (and still does regarding retail jewelry).
Platinum was a powerhouse!
Check out gold and platinum futures overlaid going back to the 1970s:
Both peaked within a month of each other in the early 1980s and experienced rip-roaring rallies during the 2000s.
