BlackRock ETF Is Leading a Bitcoin-Related Rampage
Positive market momentum is sustained as several bitcoin-related names go on a tear with few signs of profit-taking.
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Positive momentum has continued on Monday morning, but there are a few reversals. The Magnificent Seven MAGS would be red except for a move of more than 7% in Tesla TSLA. Money continues to rotate into the Russell 2000 IWM. BlackRock's iShares Bitcoin Trust ETF IBIT and bitcoin-related names are on a rampage with few signs of profit-taking.
I’ve been selling into strength this morning to lock in some very good recent gains. I’m not bearish, but I want to do some repositioning and cut some exposure in the super momentum names, right? I have not reduced any IBIT and am going to get some room to keep trending higher. Please take a look at my weekend column about trend-trading bitcoin.
The challenge at this point is that there are names like Hims & Hers HIMS, which is up 20%, and my inclination is to take some partial profits rather than try to add more. The same is the case with bitcoin-related names like Core Scientific CORZ and TeraWulf WULF.
I’m looking to find some names that have not broken out yet but have good setups and strong fundamentals. There aren’t too many, but one name I added today is gambling play Rush Street Interactive RSI. RSI had a revenue increase of $37 in the September quarter and is expected to double its eps to $0.36 per share in 2025. This is what I call an "anticipatory breakout" play. The actual breakout should attract additional buying among momentum players.
I raised quite a bit of cash today, but I’m not bearish at all. I just want to redeploy into stocks that have better technical setups. This has been a great move, but it is not sustainable. Money should rotate into some new names as market participants hunt for values with good charts.
At the time of publication, DePorre was long IBIT, HIMS, CORZ, WULF and RSI.
