Momentum Monday – All New Is Good News and NFT Mania Enters Public Markets
Courtesy of Howard Lindzon
Happy Monday everyone.
As always, Ivanhoff and I toured the markets looking for the momentum and strength. You can watch this week's episode right here on YouTube and I have embedded it below on the blog:
I start each week on Saturday scrolling through The Stocktwits Top 25 Lists to see what is working and see if anything stands out to me.
Charlie’s 5 chart Friday is also something I quickly check.
If you read this blog, you know I hold a lot of crypto. Morgan Stanley has finally gotten a little religion and sent me a long PDF deck titled:
Crypto is the first asset class in my lifetime that started out at retail and went institutional. That alone continues to fascinate me. I have no plans on reading what Morgan sent, I will [stick] with the people that got me into crypto in 2013, 2014 , 2015, 2016 etc…
The institutions embracing crypto by pitching it to their ‘Wealth Management’ clients in a ‘special report’ continues to be the biggest investing story of 2021.
As I mention in this week’s show, risk on in NFT’s, crypto and now ‘frontier markets’ as JC points out:
Here is what Ivanhoff has to say about the markets:
The Fed is saying that it doesn’t worry about inflation this year. The market has a different opinion. Long-term rates have been rising, pressuring most tech stocks, SPACs, and recent IPOs which went public at elevated valuations. In the meantime, the NFT and crypto space is flourishing. People are spending crazy money on digital art, farts, virtual houses, tweets, collectibles, you name it. A sign of froth and a side effect of too much money in the system some would say. Or maybe it is just the early innings of a new Internet. Only time will tell. The whole mania has been spilled over public markets. Any stocks related to NFT have gone up 2-5x in the past couple of weeks: TKAT, OCG, ZKIN, JFIN, YVR, HOFV, IMTE, etc. Even FB and ETSY seem to be rising based on it. Quite a few blockchain and crypto-related stocks are still setting up – MSTR, SOS, MARA, RIOT, etc.
Watch the 310 level in the QQQ next week. If it is lost, we will see a considerable number of former momentum leaders breaking down from their bearish flags.
If QQQ somehow manages to retake its 50-day moving average and then clears 325, we are back to a FOMO market. I am already seeing some clean energy stocks tightening up which can be a good foundation for a rally.
Basically, the market is in a consolidation mode. It has been choppy and indecisive lately which has required traders to be nimble.
Have a great week!
Disclaimer: All information provided is for educational purposes only and does not constitute investment, legal or tax advice, or an offer to buy or sell any security. For full disclosures, click here.
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