Narrative is overly bearish ETH due to position in market cycle. ETH is a different asset compared to 2018 however, with substantially better supply dynamics than Bitcoin, increasing average returns for ETH over BTC.
The charts reflect this. A signicant double breakout on the charts recently suggests ETH is starting to breakout of its downtrend against BTC which...
My previous thesis played out perfectly on this in 2022 (see profile).
Now, we have sharply flipped after getting close to the bottom of the channel on this key pair trade.
The beautiful breakout, with a confirmation pullback, suggests the outperformance of QQQ over SPY will continue and the breakout of the channel which occurred in 2020 is here to stay.
Given...
Lots of bearishness about technology recently follows over-performance by QQQ over SPY in the past 2 years in particular.
The trend longer-term remains bullish for QQQ due to secular tailwinds, but in the medium term, it remains likely that QQQ will fall relative to SPY to enter back into its typical secular trend channel that has existed since 2009.
The bottom...
The overly bullish narrative in this coin is overpowering, and it was mirrored in relative strength against other alts and even ETH+BTC until very recently.
For the first time, we're seeing weakness. Short with stop loss above 200 DMA.
We could be about to see a big relief rally in the arkk complex. The narrative of the "reflation" trade is absolutely deafening right now, and been going for over 6 months.
QQQ/SPY follows simple trend lines surprisingly closely. We had a bounce back of the Qs recently pre-earnings and after Treasuries settled down, but it recently rejected its dot-com high after breaking above it in February.
Given the insane outperformance in 2020, there's a long way down if QQQ continues to underperform SPY, with the top of its multi-year channel...
Not enough is said of the relative underperformance of SPY relative to QQQ since the tech bubble - adding up to 80% over the past 20 years. And, this is based on actual fundamentals, with tech's profits growing much faster than the general market.
While everyone's fixated on the "reopening trade" by investing in companies and industries in secular decline with...
Market cap: £336m
Cash on balance sheet: $102.1m
Net profit in Jan-Mar 2021 quarter: $43.1m
You can quickly see how undervalued this company is, essentially running with a 1.5-2 price-to-earnings ratio so long as PGM prices don't fall significantly.
Price action also extremely bullish. Chart seems to indicate clear route to the 140s.
The Ether bulls are deafening, and that's usually a good time to sell. 0.05 ETH/BTC, 0.5 bitcoin dominance and the top of this channel ETH/BTC has been in for months.
I'm looking for either a large correction in the overall crypto market, in which alts will be taken down more than bitcoin, or a period of outperformance by bitcoin once again.
eBay is a cheap e-commerce name that has spent years underperforming (for good reason). Now could be its time to make a significant break-out on the way to a re-rating.
Its enterprise value has largely not moved in 10 years, as stock buybacks have gradually inflated the share price.
2021 is expected to return eBay to significant, mid-teens revenue growth. That,...
The VIX dropping below 20 for the first time in over a year would be hugely significant, and most likely cause a breakout in SPY towards 400.
It's currently hugging that level in anticipation of the FOMC meeting tomorrow which could well be the catalyst that pushes up over the edge.
Sylvania has finally broke out of its channel its been in for all of 2020.
Chronically undervalued stock - history of 60%+ rev growth but with a TTM P/E ratio lower than its much larger competitors such as Impala Platinum.
Expect it to rally this week in the same vein as Tharisa (LON:THS), which rallied 80% in a matter of weeks, before ending the year at 200p+.
Lots of people focusing on 20-week MA as if this is identical to previous cycle, but all signs are that the entire cycle has been shortened and BTC is moving faster. As long as this trend holds, I'm going to keep adding.
Brexit deal in the next few days could decide where Cable goes for the next few years. Watching closely for positive break-out, which should eventually take this pair to 1.40+ as GBP remains cheap historically. Will move fast too, as this pair is heavily shorted.
However, may goes lower in short-term, as Brexit deal essentially priced in already, but extremely...
GBP reaching massive inflection point vs. USD, JPY and NZD. USD down-trend line on graph goes back to 2011. Brexit news hiding reality of extremely weak fundamentals - I see it trading down in the coming weeks.
Should continue rising in the medium term. Targeting $32 by next Monday.
Move on Friday also unexpected, could well be about to try and breakout of this channel after very strong earnings, rising option volume and more lockdowns.
Undervalued UK growth stock down so much today on short-term resignation of auditor. Buying until it breaks down out of this upward channel, but there are no signs of that happening.
