Bitcoin
Bitcoin (BTC) starts the day trading 2.5% higher after completing a 20% correction from its recent highs. The cryptocurrency also found support close to another round-number at $60,000.
The decline in Bitcoin has slowed some of the appetite for risk in the stock market, but I expect that we’re going to see another move higher, above $70,000, as investors are thinking about the halving that is set to take place in the next few weeks.
Outside of the AI Universe, this is the most exciting sector of the market and is attracting more fear-of-missing-out (FOMO) investors.
Watch for any short-term strength to turn into another tide of cash moving into the Bitcoin space.
Apple
The trend in Apple (AAPL) stock appears ready to go from bad to worse.
Apple shares have seen what we refer to as a “dead-cat bounce” (my apologies to the cat lovers out there) after hitting a textbook oversold signal on March 7. The stock rallied 5% to a key technical trendline: Its 20-day moving average.
I’m watching the $175 level very closely as a trigger price for the next round of selling. After that, expect to see some support at $170, but my price target for Apple remains at $150.
SoFi Technologies
Fintech company SoFi Technologies (SOFI) is making a scripted and dangerous move that has consequences of a 15% decline over the next month.
Since breaking below $10, SOFI has been following the path that most traders don’t bother to pay attention to, but they should.
The stock has been bouncing from one $1 increment to another and is preparing to break below $7. A break below that price is likely to target $6 is quick fashion, that’s 15% from where the stock is now.
Keep in mind that the fundamentals are working against SOFI. The Fed’s “higher and longer” mantra means that companies that deal in loan business will see continued pressure.
About the Author
Chris Johnson (“CJ”), a seasoned equity and options analyst with nearly 30 years of experience, is celebrated for his quantitative expertise in quantifying investors’ sentiment to navigate Wall Street with a deeply rooted technical and contrarian trading style.