Cryptocurrencies experienced a huge plunge last night amid worries of sustainability. But I’ve identified an ETF with exposure to the crypto market that isn’t influenced by what’s going on in the broader stock market — and more in today’s stock market recap.
I’ve also identified two stocks that were already breaking down before today’s market dip and should continue their downward trend…
But first…
Stock Market Recap
Global stocks fell today as Tech stocks lead the decline.
Low short-term interest rates and stimulus injections have helped our economy grow out of the pandemic-induced recession. The Federal Reserve still claims that inflation is “transitory,” but Wall Street is worried that it’s not. And that ongoing inflationary pressure will cause the Fed to reduce stimulus support.
The China Banking Association warned us about digital currency risk. Bitcoin fell about 8% overnight. Tesla CEO Elon Musk also pressured the cryptocurrency by saying the company is to stop accepting Bitcoin as a form of payment for its electric cars.
More regions in Japan experience surges in COVID-19 infections as a “state of emergency” has been declared in places like Tokyo and Osaka. The country’s inoculation rate remains at around 2%. Japanese doctor’s protested on Monday to have the Olympics cancelled as their country continues to struggle with the pandemic. Japan reported that its economy shrunk 5.1% annually.
Momentum levels in the S&P 500 cooled off from a 15-year high, and the Nasdaq 100’s could drop as low to the 20% level. This means 80 out of 100 stocks in the Nasdaq 100 need to trade below its 200-day moving average before building up to higher levels.
Roger’s Radar: 1 Bullish and 2 Bearish Trades
Seagen Inc. (Nasdaq: SGEN) is a biotech company focused on monoclonal antibody-based therapies for cancer treatments. SGEN trades on the Nasdaq… so it has the extra inflationary pressure I mentioned.
SGEN is trading around the $147 level, but it’s been making lower lows for the past two months and recently made a swing high. So I would jump in at the $176.50 level and let it ride down to $131 per share. Then I would cover the stock at the $153 level.
The other bearish trade for today is on an oncology pharmaceutical company that’s been breaking down since early February.
This cryptocurrency ETF isn’t correlated to the overall stock market, and just pulled back. So make sure to watch today’s video to find out its name.
In today’s video, I’ll go over why the stock market is pulling back… why the focus is on the large-cap Tech… how momentum levels can influence market action… which sectors are bullish and bearish… one pullback opportunity on a crypto ETF… and two short trade opportunities in weak Nasdaq stocks.
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Stocks have been choppy of late as many factors are pulling at the market. There are historically high momentum levels, inflationary risk, strong corporate earnings and a shift in market sectors, all as our economy takes off.
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