Bitcoin Turns on the Afterburners. A New Option Play Plus New Sector Bet on Housing Market

Crypto fever erupts.

In this issue I am adding a new option trade along with a contrarian sector wide bet on the housing market.

Bitcoin Flexes Muscles - Image courtesy of freepik.com

Market Update

The major indexes are in rally mode ahead of this Wednesday’s CPI, which could potentially cause some problems if it comes in above expectations. Get all the details in my recent post. But ahead of the number the New York Stock Exchange Advance Decline line (NYAD) is once again above its 50-day moving average and rising as VIX is well below 20, while closing in another new high. A new high would confirm the new highs in the indexes and likely move stock prices for the next few days to weeks.

The reversal in bond yields I’ve been waiting for has made some progress, although the U.S. Ten Year Note (TNX) is still stubbornly above the 4.3% level. A fall below that key level would be supportive of stocks.

For its part, Bitcoin’s breakout is accelerating. As I suggested recently, the cryptocurrency is now a money magnet which could well benefit from increasing liquidity over the next few months if the Fed continues to lower rates. We have two developing Bitcoin trades which are in excellent shape on the cryptocurrency. Both are in the Extended Stay Portfolio, and are holding up quite nicely. A full ESP update will be issued tomorrow.

Thanks to everyone for your ongoing support. I really appreciate it.

Thanks also to all the current Buy Me a Coffee members and supporters. Special shout out to new members who now have access to the Sector Selector ETF Service, included, at no extra charge with your Buy Me a Coffee membership.

For active trading, short term trading strategies, check out the Smart Money Passport.

I also appreciate single coffees, which you can also buy me at the link above.

If you’re thinking about day trading, my new book – Day Trading 101 – will get you started along the right path.

And if you like this post, hit the Like Button and Share/Restack it. It helps to spread the word.

You’re the music. I’m just the band.