Happy Sunday, everyone. It’s Matt here.
I hope you’re as stoked as I am about the market action lately. I entered a position I’d been waiting on for a while and might continue to add to it.
We’ll get to that in a second. But first, I want to address the Nervous Nellies in the room. I see a lot of traders still wondering if this recent rally is just a bear market bounce.
Of course, nobody knows for sure … but if you look to the past for clues, there’s some good news.
Traders have found a time in stock market history that looks pretty similar to what we’re experiencing now. And at that time in history, the rally turned into a real and lasting uptrend.
Let’s take a closer look at what’s giving traders hope and my number one watch for capitalizing on crypto this week…
Can This Market Rally Last?
You’ve probably heard me say this before … it’s one of Tim Bohen’s favorite things to say: History doesn’t repeat but it rhymes.
And right now, the stock market’s rhyming like a rapper with a chart from the early 1980s. Check it out here.
We were in a bear market for about twenty-one months due to the inflationary environment of the early 80s.
Want to be alerted to hot trade ideas before anywhere else?
Check out the alert for AERC on August 9th:
This is a tool you’ll want in your trading toolbox.
From there, it took the market about four months to regain its previous highs once it looked like inflation was back under control.
Today’s market story is a little different. It’s been just over twelve months of a bear market for us and inflation looks like it’s starting to flatten out — we’ll probably need it to actually decrease for traders to stay excited though.
Other good signs of recovery are that the consumer confidence report came in better than expected and both import and export prices decreased. It’s still over 21% lower than the same time last year but improving.
Whether future expectations are met or not will make all the difference. But in the meantime, the markets rallied on Friday, especially my favorite risk gauge the Nasdaq. Overall, traders took Friday’s data as a risk-on green light.
My Top Crypto Pick for the Week
Right now I’m focused on one special crypto play: Cardano (ADA). I’ve been waiting for this setup for months … and it’s finally happening!
It’s a slower mover so it won’t go bananas on you and then drop just as fast as ApeCoin (APE) did. And you don’t have to watch it all the time, so you can set it up and then also trade small caps along with Bryce.
If You’re Going to Trade Crypto… Watch This Demo First
It reveals exactly how to tell which cryptos to buy.
And more importantly, which ones to keep your hard-earned money away from.
I’m planning to swing ADA for about a week. It all depends on the price action. I consider $0.55 the key breakout level with risk down at around $0.47-$0.49. My goal right now is at the $0.75 level.
It’s rare to find a play that’s as cheap as a penny stock and yet also moves at the less stressful pace of a large-cap stock, but that’s ADA.
The sector leader Bitcoin (BTC) has been holding up well at the $24,000 key level. Keep your eyes on its moves as well as the Nasdaq since they tend to influence the smaller crypto plays.
Conclusion
If you like getting the latest alpha on crypto and the stock market, you definitely want to check out the War Room.
This month, we’re offering a $5 sneak peek membership so you can check out all the action regular members get: live crypto trading and review sessions, email recaps, and VIP customer care. Get your crypto questions answered!
And gain exclusive access to me and my buddy Kyle Williams (multi-millionaire trader). Kyle also gives in-depth talks on the state of the markets based on the high-level crypto research he subscribes to — you won’t find it for $5, I promise you that! Join us in the War Room today.