Crypto Meltdown

May 23, 2021 | Big opportunity for swing traders when cypto market is down

Weekly Newsletter - Week of 5.23.2021 

Bitcoin’s Bloodbath Continues 

Bitcoin (BTC) continues to tumble lower after another brutal week of selling. As we touched on last week, Elon Musk recently noted that Tesla would no longer accept bitcoin as a form of payment for its vehicles. This was the initial catalyst to what has become a bloodbath for all of crypto, especially BTC which is down 33% for the month and has shaved nearly 50% of its total market cap since hitting its all-time highs of 65K in April. 

Musk started the initial selling over rising concerns about the electrical power needed to currently mine BTC. However, this week we saw a new selloff induced catalyst as China (again) publicly denounced BTC. China stated that they will be implementing new regulations to limit both the mining and trading of cryptocurrency as “security” concerns grow. For context, China is the largest mining location in the world and responsible for over 65% of all bitcoins. While not a direct ban, it is obvious China’s stringent regulations will have rippling effects. In response to China's new regulations, crypto exchange Huobi will be scaling back, or even suspending some of its offerings in certain countries- another huge blow for crypto. Huobi made news with their announcement which helped take BTC down another 12%. 

To continue the perfect storm, there was also talk about a “Central Banking Digital Currency” which helped to push price action even lower. As regulation concerns grow, future outlook is uncertain and the markets are feeling the fear and uncertainty. 
Ethereum: down over 50% 
Dogecoin: down over 60% 
Cardano: down over 45% 

Equities Slump

The S&P 500 dropped nearly half of a percent, which registered the first back to-back weekly losses since February. The NASDAQ made slight gains to break a four-week losing streak. Inflation concerns, the ever growing national debt, and continued worry over flat job growth all contributed to this week’s losses in the market. 

Weekly Swing Trades

PNRG (Prime Energy)

October 2, 2022

Entry Price:

80.62

Stop Price:

76.85

Target Price:

88.04

Time Frame:

1 Week Hold

Expecting a short-term bump after a recent OPEC+ announcement regarding the a supply constraint to oil. The constraint would result in ~1M less barrels of oil per day, which should cause a price jump. Low RSI and bouncing off our 250 day moving average, both hallmarks of a good swing trade.

DV (Doubleverify)

October 2, 2022

Entry Price:

27.75

Stop Price:

26.75

Target Price:

29.00

Time Frame:

3 Week Hold

Using our moving averages heavily on this swing trade, look for continued strength as we try to notch out a 6-8% gain. Specifically, we are taking advantage of of a recent cross over in the 50 day moving average. Last week closed down, so wait for confirmation of a reversal.

Inflation Continues to be a Vocal Point 

This week we learned consumer prices are rising even faster than anticipated with CPI up over 4% from just a year ago. Supply chain constraints caused by the pandemic are one of the main culprits for this rapid ascent of inflation. Debates continue over whether this will be a prolonged issue, or something that will be resolved in upcoming quarters as production levels are expected to get back to pre-pandemic levels. Additionally, we continue to see elevated prices in the commodity market. Sky high lumber prices have caused a slowdown in the red-hot real estate market. As the cost of materials continues to inch higher, keep an eye on the following economic reports slated for release this week: Personal Consumption (released Thursday) and Personal Spending (released Friday). 

States Cut Unemployment 

21 states have now decided to no longer offer the additional $300 per week as part of current unemployment benefits. Many states are citing the increased focus on the current labor shortage as the driving factor. As the debate continues, the belief is that the additional benefits have removed the incentive for workers to try seek new employment opportunity. 

Upcoming Economic Reports

Market Performance- Week of 09.25.2022

Recent Stories

Global Risk Continues to Rise

Oct 02, 2022 | A strong dollar keeps all swing traders on edge with market headwinds stronger than ever ...read more

FedEx Says Recession is Coming

Sep 25, 2022 | What FedEx said about a potential recession and how can Swing Traders make money off it ...read more

Dollar Weakness Gives Stocks a Rebound

Sep 11, 2022 | Stocks have a slight rebound as the dollar comes down, but what does it mean going forward? ...read more

Bond Market Signals More Trouble to Come

Sep 04, 2022 | What is the Bond Market Telling Us About the Market? ...read more

Weekly Watchlists

Community Access

The whole is greater than the sum of its parts”- Aristotle

Our Stock Trading Club is home to like-minded Investors, Bankers, Accountants, Financial Advisors, Economists, Finance Majors, Small Business Owners & aspiring Entrepreneurs who network with each other, learn and discuss stocks, and update each other on emerging stock market news every single day.

Especially for new investors, having a collaborative learning environment is crucial for long term success. In The Swing Trading Club there are NO paywalls or segmented discussions. Each and every member will have access to 500+ like-minded investors just a keyboard’s length away. So after signing up, please introduce yourself.

Weekly Review

Market Performance- Week of 09.25.2022

Recent Winners

SBUX (Starbucks)

SBUX (Starbucks)

Entry Price:

85.00

September 11, 2022

Price at High:

89.90

Return for Members:

5.76%

Timeline:

2 Month Hold

Strong momentum over the last few weeks. Watch for a mean reversion, but if moving averages stay consistent look for an early play to open the week.

PNRG (Prime Energy Resources)

PNRG (Prime Energy Resources)

Entry Price:

83.20

September 4, 2022

Price at High:

100.00

Return for Members:

20.19%

Timeline:

3 Week Hold

PNRG had a drawdown to historical levels of support (around the 100 day moving average). Looking to make an entry in the coming days as we also have macro tailwinds with the energy crisis in Europe.

PYPL (Paypal)

PYPL (Paypal)

Entry Price:

87.00

August 28, 2022

Price at High:

103.00

Return for Members:

18.39%

Timeline:

4 Week Hold

Playing off the dip in June, we're starting to see momentum as the 50MA is crossing over the long-term averages. Look to for momentum to continue and an early entry on Monday.

Recent Watchlist Winners

Join the Club