Yesterday’s price action reminded me of an important lesson … we must be prepared for anything that may happen in the stock market.
Just as it looked as if the bear market rally was about to implode, a certain tech company saved the major indexes…
Microsoft Corp. (NASDAQ: MSFT) was up as much as 8% yesterday following a better-than-expected full-year 2023 earnings report.
The $2.1 trillion market cap company’s big day buoyed the major indexes, preventing the SPDR S&P 500 ETF Trust (NYSEARCA: SPY) from what could’ve been a big red day and causing the index to trade flat on the day.
But more than anything, traders’ eyes were on the crypto sector yesterday. The ProShares Bitcoin Strategy ETF (NYSEARCA: BITO) surged 8% as faith in the traditional banking system continued to deteriorate…
I didn’t expect crypto to rocket as much as it did, but its recent strength is inspiring me to re-examine the niche.
With that in mind, let’s talk about crypto and how one specific part of the sector could soon present some juicy trading opportunities…
Keep reading and I’ll show you what I mean…
Crypto’s Current Condition
I have a complicated relationship with crypto…
While I’m very bearish on the sector in the long term, I love to trade short-term volatility in optionable crypto stocks.
I’ve traded all of the following crypto stocks in the past:
- Coinbase Global Inc. (NASDAQ: COIN)
- Marathon Digital Holdings Inc. (NASDAQ: MARA)
- Riot Blockchain Inc. (NASDAQ: RIOT)
- ProShares Bitcoin Strategy ETF (NYSEARCA: BITO)
And I’m happy to trade both puts and calls, depending on what the market calls for.
Plus, don’t forget that my biggest trade of all time was a puts play on BITO.
As you can see, crypto options can be incredibly profitable in either direction when the sector is trading with lots of volatility on high volume … like right now.
That said, I’m not making any moves yet. Stay tuned to my alerts for potential updates. (And don’t chase!)
But first, let’s take a step back and look at the big picture…
Regional banks are struggling, led by First Republic Bank (NYSE: FRC) which has lost 60% of its market value in three trading days.
The stress on bank deposits has sparked a massive rotation out of bank stocks and into alternative financial instruments like commodities, precious metals, and, of course … crypto.
NOTE: FRC is yet another example of the Inverse Jim Cramer Indicator working like a charm. Just six weeks ago, he said this…
This is why it’s a critical time to be watching this sector. In crypto, big moves in one direction tend to be followed by sharp counter-move reversals, which can be extremely profitable trading opportunities.
Additionally, my mentor, Tim Sykes, is currently focusing on another part of the crypto sector that’s been bringing one trader some unbelievable results…
The Great NFT Awakening
Are you tired of missing out on the hottest crypto trading opportunities?
Well, buckle up because I’ve got some news that will blow your mind…
About a year ago, Tim Sykes sat down with Adam Jarrett, a prodigy trader, to discuss the booming NFT niche of the crypto market.
And the results of this conversation were shocking…
That’s why Tim Sykes is hosting an emergency event called The Great NFT Awakening on May 4 at 8 pm Eastern.
During this special event, Adam will reveal the exact strategy he used to achieve remarkable returns during a catastrophic crash.
Not only that, but he’ll also present cold-hard evidence of why NFTs are set to experience one of the biggest awakenings in market history.
As you can see, some interesting trading opportunities could be right around the corner in crypto.
But I’m still being cautious and waiting for the perfect setups. Keep an eye on the charts to help you find the plays that are right for you.
And whatever you do, don’t miss Tim Sykes’ event, The Great NFT Awakening on May 4 at 8 pm Eastern!