Howdy traders, it’s Bryce here.
There are two details this week that you need to understand.
They’re directly tied to profit opportunities …
- Consumer spending over the holiday season continues to impress.
- Bitcoin prices are on a bullish trajectory.
We’ll cover each of these points in today’s blog post.
Before I break down the details, understand: The trade setups this week will be INSANE.
It’s the last week of the year. Holiday spending is pushing prices higher. It’s a perfect storm. But it won’t last forever.
The market ebbs and flows. We’re in the hottest market season of the year, and things will cool down eventually.
Take advantage of this volatility while it lasts!
Here’s how …
Hot Sectors
Everyone was worried the U.S. economy would fall into a recession in 2023.
And yet, the average U.S. consumer proved resilient. Things are pretty rosy as we enter 2024. The video below has more details …
Most of the bullish market momentum in 2023 is attributable to the emergence of AI.
And thus, AI stocks are at the top of my list this week and throughout 2024. The sector is still new. Imagine trading stock of Ford Motor Company (NYSE: F) a year after the combustion engine was invented. Hopefully, that gives you an idea of the mania behind AI stocks.
Just yesterday we watched RiskOn International Inc. (NASDAQ: ROI) spike 270%. The company announced an upcoming AI business partner to be announced on January 3.
Attention: There’s a trading rule we follow called “buy the rumor, sell the news”.
Sometimes a stock will announce an upcoming event and the price spikes in anticipation. But when the event comes to pass, everyone who would have bought already did. That’s when the price tanks.
We can trade the volatility before and after the event. But we don’t want to hold shares through the event. No one knows how the price could react.
Pay attention to AI stocks this week.
Sector #2
If you’re wary of crypto, you’ve got the right mindset.
The meteoric spike in 2020 and 2021 resulted in an equally shocking selloff in 2022.
There are a lot of factors involved …
- Stimulus checks gave consumers extra cash in 2020.
- Lockdowns gave traders time to speculate with new assets.
- The decentralized and global aspect of crypto is attractive for market participants whose own national currency is subject to instability and corruption.
- In 2022, the HUGE price spike pulled back. And in the famous words of Warren Buffet: “Only when the tide goes out do you discover who’s been swimming naked.”
- Sam Bankman-Fried was about as naked as you can get. His company FTX was valued at $32 billion until the price pullback exposed overwhelming fraud.
- That necessitated a government conversation about crypto.
- Consumer sentiment hit rock bottom.
- However, the government intervention gave recent birth to a renewed interest in crypto.
Bitcoin spiked 170% in 2023.
And it’s all due to the possibility of government-regulated crypto.
Let’s get to the trade opportunities.
I’m not focused on buying Bitcoin or crypto. Instead, I’m tracking the sector’s sentiment in the stock market.
- Bakkt Holdings Inc. (NYSE: BKKT) spiked 35% and broke to new monthly highs yesterday.
- Mawson Infrastructure Group Inc. (NASDAQ: MIGI) continued its monthlong run yesterday and extended it to 490%.
- Sphere 3D Corp. (NASDAQ: ANY) is on a monthlong run of its own and pushed the spike to 610% yesterday.
To follow these trade setups live, join the next trading live stream.
The clock is ticking!
And these opportunities will only be hot for so long. Take advantage while you can.
Cheers!