It doesn’t look like too many investors want to look ahead to the holiday weekend, with all major US indexes falling at the start of the weekend and over the past few days. With that in mind, let’s now take a look at some of the major stock trades.
Top Market Trades Tuesday #1: Bitcoin (BTC-USD)
Here is a weekly chart of Bitcoin (BTC-USD), which has taken a heavy hit over the past two weeks (and more specifically the past three days). I am as objective as possible here with Bitcoin. I’m not long, I’m not short, and I’m not biased one way or the other.
Looking at the chart, I’m not surprised that Bitcoin was unable to recover $45,000, which was support towards the end of the year and failed in early January. The market did not support “risky” assets such as cryptocurrencies.
If he loses $40,000 (and thus the flash-crash low), he could put the $33,000 zone back into play. If so, we will need to watch for a monthly downward rotation, which could put the $29,000-$30,000 zone back into play.
In this scenario, we have an “ABC” type correction in progress. The question will then become, how deep is “leg C?”
Is this a $33,000 “ABC dish”? Is it a slightly deeper low in the $30,000 area or are we looking at a bigger drop towards the 161.8% downside extension near $25,000?
On the flip side, however, if Bitcoin strengthens and pushes back the 10-week moving average, we could be looking at another push higher.
Top Tuesday Stock Trades #2: Roku (ROKU)
There will be no upward push this week Roku (NASDAQ:ROKU), who is completely crushed after declaring his income. Shares fell below the January low and the lifetime VWAP measure near $127.
Now looking for its foot near $100, the bulls are hoping to keep the stock from plunging completely off the cliff. If so, I think we will eventually keep our eyes on the $77.50-$80 area.
On the upside, though, let’s see if Roku can recoup $127, then $139 and $150. Short-term moving averages aside, the 200-week period is the most important one to focus on if we get a good bounce.
Tuesday’s Top Trades #3: S&P 500 ETF (SPY)
the S&P 500 ETFs (NYSEARC:TO SPY) doesn’t encourage bulls, but how many people are looking to extend a three-day weekend with a potential war about to break out in Eastern Europe?
I write on the S&P every morning because it is important to know what the key levels are. Friday’s key level on the downside was $435.34, this week’s low.
The large undercut of this level and the bounce above it makes things interesting now.
If we can daily increase this level (or essentially clear Friday’s high early next week), it could bring the $442.50-$445 zone into play, where the SPY finds the 10-day move. , 21 days and 200 days. averages.
However, if we drop below Friday’s low every week, it brings the $428-$430 support zone into play, as well as the fourth quarter low. Below these levels opens the door to the January low near $420.
Tuesday’s Top Trades #4: Gold ETF (GLD)
Last but not least, gold has been trading very well lately, as seen in the SPDR Gold Trust ETF (NYSEARC:GLD).
I’d like to see GLD stay above the Q4 high and ride the 10-day moving average as support (note: the 10-the week the moving average is shown above, not 10 days).
If it continues to rise, keep an eye on the $180-$183.50 area. The first is the 61.8% retracement, while the second was a strong resistance in Q4 2020 and Q1 2021. Above this zone, $190 is in play.
On the downside, however, a move below the Q4 low brings the 10-week moving average into play and potentially the top of prior downtrend resistance (blue line).
Have a great, safe three-day weekend and rest up, traders!
As of the date of publication, Bret Kenwell had a painfully long position in ROKU. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.
Bret Kenwell is the director and author of Future Blue Chips and is on Twitter @BretKenwell.