Complimentary Issue of Blue Line Trading Weekend Update: March 28, 2021
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The Power of Three
Below are the three most powerful opportunities for significant profits through trading options, stocks, or cryptocurrency for the rest of 2021. Although it's unlikely that all three will come to pass at the same time, it is very likely that each will unfold in the months ahead. Each has its own scale of profit potential, and all of the scales are enormous.
One: The Big Picture
The Elliott Wave pattern being played out, especially in the Nasdaq 100 (QQQ), is reaching a "do or die" turning point. The odds of a strong selloff in the weeks ahead are high as the QQQ has traced out larger Wave's 1-2 followed now by smaller waves 1-2 that wit Wave 2 reaching a natural Fibonacci reversal zone of a 61.8% of the smaller Wave 1 retracement. This pattern is classic and implies a strong reversal back down beginning next week.
Two: Bitcoin & Cryptocurrencies
This morning Bitcoin is trading at $55,620, confirming the Intermediate Term Buy Signal from Friday's Special Alert. One of these Intermediate term signals will be the one to thrust Bitcoin up over $62,000 to over $80,000 to over $100,000. Always expect the current signal to be THE signal. As far as trading goes, being long Bitcoin itself, or long GBTC, are the two purest plays. A third is Microstrategy (MSTR) which for all intents and purposes has become a valuation proxy for Bitcoin and will generally reflect price appreciation, albeit not dollar for dollar and day to day. Consider it a GBTC with more volatility, and tradable options. The Bitcoin miners, RIOT and HVBTF are a third avenue to play Bitcoin's price appreciation with heir best days are still ahead. These two are insanely leveraged to a $100,000 Bitcoin price.
I've been asked for some for the "Alt Coins" ideas that are available on various Bitcoin exchanges. These are niche cryptocurrencies and most way above my limited crypto-tise. Nonetheless, Bitcoin itself was a penny stock in 2010, trading under 10c, so maybe there are a few worth considering. The only one I'm personally buying now is VeChain (VET) which is trading at about 9 cents. Thirty days ago it was trading at 3 cents. In other words, while Bitcoin rose about 25%, VeChain rose 200%. If and when other of these "Alt coins" come to my attention, I'll pass them along.
Three: Tesla (TSLA)
Three observations from trading TSLA Buy Signals from the past three years:
(1) Not every TSLA Short/Intermediate Term Buy Signal works;
(2) The ones that do more than make up for the ones that don't;
(3) Don't miss the next one.
TSLA is getting knocked around with the nascent Nasdaq deep dive, but it is also, (1) holding over 600,000 pre-orders for Cybertruck which will begin shipping as early as late this year, (2) has the best green energy technology for making over and protecting the global electrical grid, and, (3) has been pegged by ARK Invest as a $3,000-$4,000 price target in the next 4 years. It's a just a timing matter now, and at what price TSLA bottoms and starts climbing toward those price targets. On the next Intermediate Term Buy Signal we will be going long-term on the call recommendation. Assuming a $2,000 price by mid-2022, about 18 months from now, these longer term calls will become very attractive:
Bitcoin is at $56,100 as I close this out and of the three opportunities set out above, it may be the one that unfolds without regard to the others, i.e., 2 out of 3 would make for an outstanding 2021.
Allan