Bitcoin
Tesla’s Bull Run, Bitcoin’s Drop for Longer: Key Takeaways
Tesla (TSLA) continued his winning streak and closed higher for the 10th consecutive trading day. Meanwhile, bitcoin (BTC-USD) continues to trade below a $60,000 benchmark, taking a bit longer to recover than in previous bearish periods. Should investors hold the stock overnight and trade in the morning? Data around the S&P 500 (^GSPC) reveals that it can generate a higher return than some day trades.
Yahoo Finance Reporter Jared Blikre joins Asking for a Trend to analyze the latest market trends and takeaways for the July 9 session
For more expert insights and the latest market action, click here here to watch this full episode of Asking for a Trend.
This post was written by Nicholas Jacobin
Video Transcript
S and P 500 NASDAQ, uh, building on record highs today.
Rate-cut hopes remained intact after Fed Chairman Pao kicked off his semiannual update to Congress and Yahoo!
Finance says Jared Brookie joins us now with more on the lessons of the trading day.
Jared, that’s right.
Powell may be on top, but I want to talk about Tesla.
And that’s because Tesla is now on this 10-day winning streak.
And let me open up our mega cap heat map and make a little stock chart.
Oh, that’s not it.
But here’s Tesla, along with some of the other mega caps down here. 3.71% is what it returned today.
And here’s the year-to-date chart.
This is something.
And let me put some candlesticks in it.
First, you can see that it’s just moving up into the green for the year.
Uh, and this was just a few days ago, but here’s that 10 day sequence and this comes out of the bottom of that head and it should actually be at the top of that head and shoulders, uh, the bottom that we were seeing there and you look at the longer term chart.
It has finally broken out of that negative trend line and that is very encouraging from a number of short-term perspectives.
So you’re in a good phase.
Where do we go from here?
Jared?
Are there 300 more?
You know, 300 is a high level.
Let me erase that line there and you can see that 300 was a resistance line in the past, more or less there.
There too.
So I think it would be a bit of a stretch for Tesla to get to 300.
But I could squeeze it in there.
We’ve seen someone defy the odds before.
Interestingly, he’s now in the middle of a 53-day, 53-day rally.
It’s from this point to this point here.
Remember, there are only five.
It’s five years, but that’s 85% here, 85% here, 85% here.
It looks like Tesla has already come close to that.
So if that’s the case, he might end up stopping right there before he can recover or reload for his next move, which we’ll be watching for.
The story continues
Alright, now guess what we’re going to talk about.
Let’s talk about day traders and night traders and let me explain that holding overnight is more important than holding during the day.
This is a chart I like to update from time to time.
And basically he takes over the market.
It is destroyed in two.
Is it 9:30 to 4:00? It’s in purple here.
Or is it 4pm to 9pm?
30 AMI?
Imagine that every day at the closing bell you buy and then sell in the morning.
This would make you more money.
That would make him the most money since last year’s October lows.
Why?
Jared explains this.
I’ll tell you something, if you think about it, the market is only open 6.5 hours a day.
It remains closed the rest of the time, 17.5 hours.
This means it is closed about 72% of the time.
There are all sorts of things happening all over the world.
What I’ve found over time, this goes back over 30 years, is that you want to be in the driver’s seat of the night market.
I have never seen a bull market where the overnight market did not gain more than the day market.
It’s just because of the time difference.
Let’s say you are an investor.
Are you watching this, Jared? Is this true in any way?
I mean, is this a source of concern for you?
Concern.
You know, it’s not a sale.
It was never a source.
It would be a source of concern to me if I didn’t see this.
Let me put it this way.
Because when we were in the 2022 bear market, this picture looked very different.
Well, the night market was selling a lot more than the day market, and that’s the kind of balance we see.
It’s a simple percentage amount of time.
The market at night.
You have more time.
All good.
Third, Jared’s point B.
Alright, we need to talk about cryptocurrencies here at Bitcoin. Bitcoin is on its way to finally hitting 60,000.
Let me just map out what’s happening with Bitcoin right now.
I like to say that Bitcoin loves to deceive traders, and we have seen this happen many times.
Give me two seconds.
Here is our cryptocurrency heatmap.
And, uh, these are cryptocurrency stocks.
We want to get the actual token.
Here’s Bitcoin, um, on a year-to-date chart and let me put the candlesticks here, we’re seeing that it’s in this consolidation range right now.
It broke a few months ago.
At the end of April, beginning of May, it broke.
Then he recovered quickly.
It’s happening now, but you’re noticing it’s taking a little longer.
The amount of time this is taking is concerning.
That’s why I say it needs to be above 60,000.
Otherwise, I’ll probably use this as a resistance level.
And then it just gets worse from there.
So it looks like it breaks above and stays like that and goes up to test that 75,000.
So that’s it, Bitcoin.
What about the other big tokens?
What are they potentially telling me?
Clear.
So we just saw Bitcoin kind of breaking out of its multi-month range, and Ethereum doing something similar.
If we take this line here a little below 3000.
We can see that we didn’t drop as much as Bitcoin did in breaking through these previous levels here, but we are testing them.
So I think the chart we’re looking at here is actually more constructive: Ethereum.
And we can also check out Solana.
I also like the Solana chart.
You can see that this is actually the lower bound, here is the breakeven point.
Brand.
Mark, uh, that also respects your lower limit.
So overall I give cryptocurrencies a fair chance to say the bull market is still here but keeping Bitcoin at 60k is make or break for me.
Alright, Jared.
Thank you friend.