Let’s do this week’s Livestream Q&A Chat today at 2pm ET. You can talk to me using The IAm Cody Willard App for iOS and Android and you can engage with me live on my youtube channel. I’ll also take questions over the phone on our conference call line (Dial-in: 641-715-0700 Access Code: 709981), in the Trading With Cody chat room or just email us your question to support@tradingwithcody.com.
Bitcoin and many of the cryptos rallied 10% or so earlier this morning on no news. Bitcoin rallied about $8000 for a few minutes and has now pulled back to $7700. It will be interesting to see if and/or how long it takes for the the selling pressure from those trapped longs who’ve bought above $7000 to take bitcoin back down to $7000 or lower.
As I’d noted yesterday — “All those weak-handed holders are scared after seeing this 70% drop. And they’ll most likely be selling on rallies, muting the upside near-term. Most will probably be looking to get back what money they can whenever bitcoin gets closer to where they bought it at…” — I’m not saying bitcoin will go straight down from here, but I do expect it’s headed much lower in coming months.
As for stocks, we’ve got earnings season starting tomorrow. The headlines touting how strong earnings will be and how that will save stocks from this recent sell-off and panicky volatile action continue and are going mainstream, including in today’s USA Today:
401(k) down? Here’s why corporate earnings season could lift the gloom
Everyone’s just sure that earnings this season will rally stocks!
The earnings reports are really going to have to be great and much better than the much better than expected very strong growth that every analyst, trader, reporter and their dogs are looking for.
I remain cautious here and frankly, I’d probably consider buying some more puts on some selective cases if earnings season starts off with stocks getting sold. But mostly, I’m just staying cautious, defensive while I remain net long so many of these great Revolutionary Investment names that we’ve made 300%, 500% or 700% or even more gains on in the last few years. And I’m hard at work finding our next ones.
See you at 2pm ET today for this week’s Livestream Q&A Chat today at 2pm ET. You can talk to me using The IAm Cody Willard App for iOS and Android and you can engage with me live on my youtube channel. I’ll also take questions over the phone on our conference call line (Dial-in: 641-715-0700 Access Code: 709981), in the Trading With Cody chat room or just email us your question to support@tradingwithcody.com.