Crypto Crazy

Dow: +53.62…
Nasdaq: -138.26… S&P: -16.93…

The S&P dipped 0.4% today, as investors appeared to take profits in the heavily-weighted growth stocks amid the highly-anticipated public debut of Coinbase (COIN 328.28, -52.72, -13.8%). The SPX started the day slightly higher in record territory following Q1 earnings reports from several of the big banks. 

The Nasdaq underperformed with a 1.0% decline. The Dow (+0.2%) and Russell 2000 (+0.8%), which are more exposed to reopening stocks, outperformed in positive territory but closed off session highs. Like the S&P 500, the Dow set an intraday all-time high. 

Coinbase was priced at $250, opened at $381 hit a high of 409 in the opening minutes of trading, but rolled over to close at 328. So it closed about 14% lower than its opening price.

Crypto-related names had horrible days. RIOT -15.3%, MARA -15.7%, and EHTH -6.1%. The Grayscale Bitcoin ETF was -6.1%. The knife cuts both ways in these names.

The thinking was that the crypto names were sold as a source of funds to by COIN. We will see where they all land tomorrow.

Here is the 10 minite chart on COIN today.

Yes, the SPX, DOW, and Nazzy are hanging around at all-time highs, and maybe it’s just me, but I feel like I have been getting chopped up like a Vidalia onion these last 2-3 weeks.

The Nazzy broke above that double top yesterday to make an all-time high, but today it reversed and printed a pretty ugly bar and closed near the lows of the day, and took out yesterday’s lows.

Will Coinbase be the the short term top of an already frothy market? It’s happened before. We shall see.

You guys can Google Tom DeMark and his DeMark countdown, but Bitcoin is showing some overbought action. Nothing is 100% accurate but from my experience it’s been very accurate in calling short-term tops and bottoms. Let’s see what happens in the days ahead.

Are the chips done? Failing at the double top. Maybe just gathering steam for the next move up, or is the big pullback finally ready to start?

Sometimes as a trader, you go through a period where you couldn’t get wet if you fell out of a boat. It never lasts, but it sucks when you are going through it.

I made an early sale on PLTR today. Its still OK but the action was weak and the Nazzy started to look heavy.


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