September Is The Month Speculative IPOs and Crypto Began To Collapse Again – Mike Swanson (09/30/2019)

This is the final trading day for this month and perhaps the most noteworthy thing that has happened is that Bitcoin and speculative IPOs and sectors have rolled over and gone into collapse.

It’s easy not to know that this just happened with the news media now being dominated by DC politics and the financial media hanging on to the next Trump trade tweet, but things are getting ugly for a lot of speculators now in the financial markets.

On September 3rd I issued a warning in a post titled Now Is The Time To Sell Bitcoin And Walk Away From It Forever. That post generated a lot of backlash from crypto believers, but the Bitcoin price collapsed through $10,000 and then finished the month below $8,000 to show why the warning was real.

Take a look at the chart.

With the stock market though fad IPO’s like Lyft, Uber, and Beyond Meat also continued to dump and fade away.

This has becoming the year of the fading fad IPO as now WeWork has been pulled or delayed. We also have seen another failed rally in dope stocks as ACB, CGC, and TLRY just continued to make new lows this month after having a dead cat bounce that brought some hope into Labor Day.

ACB remains the number one most owned stock by the most number of people with Robinhood Accounts. Here is their list of the top stocks in order of ownership.

Most small traders tend to jump on what was hot a year or two and then holding the bag. That is what the Bitcoin rally of this year has done to people and the first quarter moves in dope stocks and other laggards like GE that attracted small traders.

This is actually all a sign that the stock market is going through a mega stage three topping process. It can still rally again if there is a trade truce deal, but this is all a big warning sign.

However, things are happening now in the gold and silver markets with small cap mining stocks. There is always something coming alive when past fads die out. Money always moves in the markets to where money is to be made. Gold and silver surged this summer and now in the process of consolidating those gains to make the next few weeks a key time for new entries.

Two weeks ago I put on a new trade in a new mining stock that is trading with a price/sales ratio under .50 in my private Power Investor trading group. That stock has gone up over thirty percent already from that entry point and I believe there are going to be more stocks like this to come.

To get the next pick in my private trading group go here to join:

-Mike Swanson

Share This Post