Note: Our Live Mid-month Conference call is this coming Monday Nov 21st @ 6PM ET. Premium Members can register here.
For quite some time we’ve treated Bitcoin and many Altcoins as just more stocks to choose from.
More specifically, we can argue they might be software stocks, or Tech stock of some kind.
At the very least, we’ve agreed that they’re in the growth category and part of that long-duration trade.
And the correlations have been there to justify it.
So the divergence we’ve seen lately really stands out.
Regardless of market capitalization, you can see the growth stocks holding on to their June lows, but Bitcoin and many Altcoins have not.
They’ve gone on to make lower lows:
This bullish divergence really stands out, because the growth stocks are showing so much more strength than the crypto assets.
From a bigger picture standpoint, the trade has been very simple:
If a stock is above its June lows then we’re interested. Below the June lows and there’s nothing to talk about from the long side.
So in many Growth stocks, the trade has been long, or at the very least not a short.
For Bitcoin, there’s nothing to do here from the long side if we’re below those summer lows.
I think it’s worth pointing out the relative strength on the equities side of the equation.
Also worth noting is that the relative strength can be seen even more so from the small-cap growth stocks. This is true both relative to the overall market, as well as vs small-cap value stocks.
It’s worth paying attention to.
How about you? What are you seeing out there?
Feel free to chime in here.
What Are We Buying??
Tuesday night 11/21 @ 6PM I will be hosting our Live Mid-Month Conference Call.
This is where we go over everything we need to know as we finish up November and head into the final month of the year.
Remember, we’re in the most bullish period of both the year and the 4-year presidential cycle.
Find out what we’re buying, what we’re ignoring, and what the market needs to do to change our minds.
This is a can’t miss event!