June 8th premarket prep
Cypto Markets
Its looking like we might breakdown here on BTC I have orders in place to take shorts on breakdowns. The narrowness of the last 2 candles are very interesting to me as they show a compression of the battle between the bulls and bears here. Often with compression comes expansion very soon after.
I wanted to point out the relative strength of the alts like ETH. This for me means that if I am looking to short it will be BTC and if I’m looking to buy crypto it will ETH.
Equty markets
Very bullish action today on the SPY. We pulled off that resistance area in the morning but had buyers come in later in the day to close us right back up there. A breakout tomorrow is going to be very strong IMO.
TLT is the 20 year bond index. As the moves higher interst rates a moving lower.
Interest rates falling is what caused the growth stocks crash in the first place so if this is turning around it could be a good case for a change in growth stocks. Which is always good for us as they are more fun to play.
The QQQ are showing some power for the last 2 days over the SPY. This is more evidence in the camp that we might be having at least a short term bounce coming on growth.
Note that a lot was weak today. But consumer reactionary was doing well along with real estate.
This is a chart of Value (think retail, finance, energy) vs Growth (think EV stocks, Weed and crypto).
Is it possible that a bounce on these names are coming with all that we have seen today? If so it might be worth your time making a list of your favourite high volume high beta names to watch.
Stocks to watch
HUGE short float in $PGEN here. For reference this is higher than both AMC and GME. $6 has been big support for a while so that would be my worst case level.
The number to watch here on BMRN is $80 over that might signal a long term break of this base.
ATNX has a massive short float of 18% and has been beaten up. If we get a bullish move into the gap there is a shot that those shorts will start to take their massive profits leading to a strong move into that gap.
Note from today: this action was really strong if we can break and hold (close) over 5 that would be when I think could really get going.
Might be a bit early on FIXX but we might be setting up a higher low and starting a change in trend. If we get to the high before the break down thats a triple so we know this one is wild.
Watchlists
ATNX, FIXX, BMRN, PGEN
my Thoughts
The turn in growth names today is something that really perk my interest. if this change is going to happen I means its time to rethink the “boring” trade that has been going on since February. This is why you can see the watch list tomorrow is higher growth names with large short floats. This could fall apart quickly so be careful out there.
Thank you all for signing up and feedback is more than welcome.
PREMARKET update
Meme are the thing again today.
WEN is the new target but keep an eye on anything with a high short float.
