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Time to buy SPY? Don't fight Bitcoin strength

Kitco Commentaries | Opinions, Ideas and Markets Talk

Featuring views and opinions written by market professionals, not staff journalists.

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Triangles like to break to the upside, and the below 4-hour Bitcoin chart shows one in progress. Traders need to adapt; you don’t have to be long Bitcoin, but in my opinion, there is no reason to be short here, from a technical perspective.

That said, of course, I think the probability is now an upside breakout rather than the buyable dip at $31,800 I have been suggesting. There is certainly no reason to sell any part of a stack either, in my opinion. The below weekly chart has as bullish a look to it as when I first started showing it months ago. A break of the dashed line, and who knows how high it will fly? (my guess is next resistance around 41k).

Finally, the S&P futures chart on the daily timeframe; no crash thus far. As I mentioned on Friday, I would be on the lookout for a flip to the long side. Daily momentum is oversold (so is weekly) and the price is hitting the bottom of a clear downward channel. I think prices will most likely find support here; the target is a move back to the top trendline. The question is whether a rally will soon break the formation of lower highs and lower lows in place from late July.

Thanks, and have a nice week,

By

Jonathan Da Silva

Contributing to kitco.com

Contact jdasilva@kitco.com
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.