On Monday, the Nasdaq closed below critical support and ever since then we have seen weakness in many of the favorite big cap tech stocks. Yesterday, LYFT gapped up on on earnings and then finished the day down over 6% for a profit taking disaster. This type of action is happening in many stocks inside the ARKK ETF. ETSY did the same thing last night in after hours trading and Wood favorite PTON is now crashing. When so much hot money pushes big cap tech stocks up this is just the sort of thing that happens with profit taking on earnings. The wild activity we have seen in the crypto virtual currency markets in the past three months in fact makes market drops in tech almost certain to hit from time to time. I explained why in an interview I did with Jim Goddard yesterday you can find here.
That doesn’t mean there isn’t money to be made. The GDX gold stock ETF finished Wednesday in the green and silver is still poised for a big breakout. But the price of coffee completely took off in the futures markets as you can see from the JO ETF, which tracks it.
Why did coffee go up? From reports:
“Dealers said fund buying is facing little resistance from producer selling, as growers in Brazil remain worried about the size of this year’s crop and hold on to new sales….’As the market rose, new buy stops were hit, taking it even higher,” a broker said.”
I actually put a buy on this ETF a week ago and broke down why in this video I did a week ago:
It is very difficult to make money now in the top 100 Robinhood stocks that everyone already owns and fad plays like the stocks in the ARKK ETF.
Why?
Because there is record margin debt in the market so everyone is all-in.
Who is left to buy?
That’s why you get corrections.
But no one is in coffee and commodities even though they are going up. That’s what the first part of a bull market is like. And you won’t find my top stock pick for this month on the Robinhood most owned list either. Keep your eyes on an HL breakout for a silver move.
And now watch the price of wheat to move next!
WEAT has resistance at $7.20, but a close above it can trigger a limit up move like we have seen multiple times for corn. Inflation is here and will soon be apparent in the grocery stores. The DBA ETF, which I own in my IRA, is going straight up now.
And I’m going to keep talking about opportunities like that for you! I will leave crypto for the Twitter social media maggots! Things like “cancel culture” and Twitter/Facebook negativity won’t stop me. Those are the homes for crypto. This is a place for real trading and investing in things that people use on the real world that have true value to them and companies that make money – not virtual currencies that represent ownership in nothing that exists in the real world.
-Mike
