Week in Review (March 1 – March 7)
Equities – Beginning of the week same some bullish recovery in DIA and SPY which was erased by end of the week. Coronavirus fears and country immigration closures were the primary driving force behind declines in IYT, USOIL, DIA, and SPY. The lagging market sector during selloff was QQQ which could be attributed to AMZN and AAPL, as consumers are ordering more things from home and watching streaming services. ZM (Zoom Video) briefly saw bullish breakout which was also quickly erased. My opinion is that any bullish entry will be quickly used for brokers to ext. More downside risk than upside potential currently.
Crypto – Positive events for Bitcoin was minimal reaction to market selloff. While holders of crypto may be selling to pay margin calls, this will be our possible entry. We see bearish EMA cross and price retested the 128D MA on Daily view. We are waiting for our $7700 entry or GBTC at $8.80 (or less).
Looking Forward to (March 8 – March 14)
Equities – We are using DIA and SPY as main indicators of market health and direction. We are using the moving averages on Weekly and Daily view to judge levels.
Levels to watch
DIA – We are sitting on 128D MA currently. Next stop is $235 – 200D MA.
SPY – Next stop is $283 – 128D MA. Then $263 – 200D MA.
QQQ – $197 – 50D MA; $178 – 128D MA; $158 – 200D MA
Crypto – Using the “6 Simple Moving Averages” indicator on Weekly view, we use the 128D and 200D moving average to find possible price levels on entry. We can confirm this by looking at BTC2! (Bitcoin Futures) chart to find gaps. The gap on Bitcoin Futures is around same level as 128D MA on BTCUSD chart - $7700.
GBTC similarly has a gap around $8.80 to $8.60. With a 4HR gap at $7.96. This price gap at $8.80 is same as $7700 Bitcoin level, which makes it more likely to occur in my opinion.