Although market conditions are not ideal for our style of trading (breakouts in growth stocks), it looks like stocks want to push higher in the short-term.
Earlier today, we sold HALF of our $MANA position in the Morpheus Crypto portfolio for a solid gain of +17% since our May 13 buy entry.
Although stocks are in short-term bounce mode, the Nasdaq 100 remains firmly in a downtrend UNLESS the index convincingly reclaims support of its 20-day EMA on higher volume.
After the initial spike in $MKR, we waited for a substantial pullback and then entered with an ideal, low-risk entry point.
We then scaled out the next day and quickly locked in an average gain of +44% on a ONE-day hold, as Bitcoin started reversing off its low.
Stocks indeed finished Friday’s session with solid gains, thereby confirming the previous day’s bullish reversal pattern. However, given the vicious sell-off after breaking below major support levels, the S&P 500 and Nasdaq now have an abundance of overhead supply and resistance levels to contend with.
In order for the current rally attempt to get some legs, we need to see increasing momentum in the form of higher volume. Furthermore, remember that $BTC and $ETH both remain below their 10, 20, and 50-day moving averages.
As explained near the end of the video, we have reset our relative strength watchlist and are now in scanning mode to look for the next leaders when the buyers return.
For now, we remain 100% cash and waiting for the market to find support.
Many altcoins, even former market leaders such as Solana ($SOL) and Avalanche ($AVAX), have fallen to or are nearing their 52-week lows.
However, despite broad-based altcoin weakness, Morpheus Crypto portfolio has been bagging some nice gains lately!
Bitcoin formed another bullish reversal pattern on April 25, but this time the King of Crypto may be stuck in “no man’s land” in the short-term. Here’s why…
STEPN ($GMT), which initially entered our watchlist entry three weeks ago, was our biggest winner last week.
We bagged a sweet price gain of +54% through holding $GMT for just 3 days!
The original buy setup is shown below, along with our actual portfolio entry and exit prices.
