A little over an hour ago I delivered to clients this weekend's edition of Turning Points. In it we have 16 pages of technical data reviewing the importance of what occurred this past week, not just in the Nasdaq, but also key individual names and ETFs.
There are times in a market trend where everything comes together in an undeniable and overwhelming fashion. This past week was a text book example of such an occurrence.
As a result, we have taken down net exposure to levels not seen since Q3 of last year.
At the same time, an interesting divergence is taking place in risk assets as crypto continues to garner investor attention, with increasing focus on alternative crypto names.
The overall trend remains in its infant stages, as Bitcoin is just beginning to flirt with new all-time highs, while other key tokens are still some ways away from new highs. Most alt names have yet to make a move at all.
Over the next 12-18 months, an inordinate amount of investor attention will be driven towards crypto due to the expansion in market caps taking place, further solidifying crypto as a major asset class with opportunities far beyond just Bitcoin.
This bullish view on crypto isn't something new around here either. In fact, I have been discussing this since October of last year, when we were buying MSTR in the 300 range and subsequently, ETHE in the mid-teens.
While we continue to trade in Bitcoin and ETH related names, the greatest gains for investors will come from discovering well placed alternative crypto names that have potential in excess of 10x. You cannot trade around the volatility in these names, which is why we choose to take positions and simply sit on them for the duration of the cycle.
In the case of both equities and crypto, the focus of investors should remain on finding opportunities to increase bullish exposure.
We have plenty of firepower to increase exposure to equities in the days and weeks ahead. Certainly looking forward to what are sure to be many new opportunities presented throughout whatever volatility the market decides to give us in the time to come.
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