I'm Looking for Entry Points in These Four Bitcoin Stocks
This is my current market strategy as the indices struggle.
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The October CPI numbers were exactly in line with expectations. There was some worry about a "hot" report, so there was a little relief, which helped produce a strong open. The relief didn’t last long, and the senior indices are now in red.
The good news is that the Russell 2000 IWM, bitcoin-related and other speculative sectors continue to do well. The space-related group is particularly hot, with Rocket Lab RKLB, AST Spacemobile ASTS, Redwire RDW and Intuitive Machines (LUNR). I am long with all four names and will continue to look for entry points as the charts develop.
I remain bullish on bitcoin IBIT and bitcoin-related names such as Core Scientific CORZ, TeraWulf WULF and Cipher Mining CIFR. I will be looking for entry points in those names as well.
One of the primary issues right now is to make sure you stay focused on price action and are not sucked into the debate over President Trump. I am seeing many market pundits who are letting their political bias impact the way they view the market. They engage in what is called "data mining," which means they only look for data that confirms the view that they already hold.
It takes an extra effort to maintain objectivity in a market environment like this. The best solution is to stay focused on technical action and let price action guide you. Trying to guess how the Trump administration will impact the market in the short term is just plain arrogance.
My primary focus right now is stock picking. I’m not paying too much attention to the indices, as they are obviously extended and need some rest. What I want to know is what stocks will have the best chance of sustained upside as the indices consolidate. I’m digging through hundreds of charts, and when I find something that I like, I’ll research fundamentals and look for potential catalysts. Currently, my shopping list is pretty short because so many stocks have made big moves, but a little corrective action will change that.
As noted, I raised quite a bit of cash on Monday and haven’t made any large buys other than Rush Street RSI. Hims HIMS has worked out very well, but I didn’t hold enough due to the high volatility.
Nvidia NVDA earnings are coming on November 20, and I will update my thinking of that soon.
Magnificent Seven MAGS is lagging again, and the action is increasingly sloppy.
At the time of publication, DePorre was long RKLB, ASTS, RDW, LUNR, IBIT, CORZ, WULF, CIFR, RSI, HIMS and NVDA.
