Flash Alert! A.I. Signals Buy Bitcoin

RoboStreet – February 13, 2020

Broad Momentum Lifts Stocks To New Highs

The stock market remains very resilient to negative news and posted a series of new highs this week before pausing yesterday on news of an elevated number of coronavirus cases in China. In light of the news that took the Dow down by over 200 points in the early going yesterday, buyers stepped in aggressively that pared losses thereby keeping the current uptrend well intact. 

The SPY has rising support at $330 (20-days MA) and then down at $325 (50 days MA) where I believe it will hold if tested. What is most interesting is that prices of safe-haven assets remain elevated, indicating there is still plenty of nervous money sloshing around. The dollar continues to trade higher against other currencies, Treasury yields are down near their recent lows and gold is trading near its 52-week high along with utilities and REITs. 

 “I’m investing my own money in each and every stock as my AI platform identifies.”

And remember we’re not talking about day-trading here.  I’m looking for 50-100% gains inside of the next 3 months, so my weekly updates are timely enough for you to act.

Click Here – To See Where I Put My RoboInvestor Money

The Tradespoon Seasonal Chart shows the SPY has further short-term bullish momentum in-store but is also flashing an overbought condition further out. This reading coincides with my current market view and thus should be heeded in terms of lightening up market exposure on strength as a prudent strategy. 

So, as risk-on sectors such as technology, industrials, metals, mining, transportation, and consumer discretion push higher, it’s not at the expense of the defensive sectors, which makes for a very broad-based rally. In fact, this past week has seen advancing volume outpace declining volume by a 4 to 1 ratio with ten of eleven sectors advancing, the exception being the lagging energy stocks. 

As many leading stocks that are large index components march higher into rarified air, there are also some stealth rallies in alternative assets taking place that are not getting much of a mention. Case in point is Bitcoin. Once the table talks in every kitchen in America, cryptocurrencies fell from sky-high valuations, crushing millions of speculators that had invested and borrowed heavily to buy into the manic buying wave of 2017 that fizzled out hard that December, bottomed out in early 2019, and is now in recovery. A view of the 1-year chart below of Bitcoin tells the story if its new uptrend. 

For those that want to trade an institutional instrument in current brokerage accounts that tracks Bitcoin – they can trade shares of Grayscale Bitcoin Trust (GBTC), a highly liquid instrument (average daily volume 5.05 million) that is being marketed as a more high-powered hedge than gold. This correlation is up for great debate, but no one can deny the recent runup in Bitcoin from $6,585 in mid-December to $10,365 today isn’t impressive. That’s a 57.4% return in just three months. 

Even more compelling is how the 20-days MA (blue line) and the 50-days MA (orange line) are turning sharply higher and about to put in a “golden cross” up and through the 200-days MA (black line) in the days ahead. Given that Bitcoin traders are super attached to the technical moving averages, there is a strong case for shares of GBTC to trade back up towards the June 2019 high of $17.50 from its current level of $13.00 with relative ease. 

Bullish bets on Bitcoin and GBTC are linked to turbulence in China from the virus and wealthy citizens hiding transfers of assets outside the country, the turmoil between Iran and the U.S., the slowing or halving of the number of Bitcoins being mined, the issuance of option trading on Bitcoin futures at the CME and companies like asset managers Wisdom Tree stating it plans to offer clients so-called stable coins, which are virtual assets that are pegged to fiat currencies like the dollar, euro, or yen. 

No matter the reason or reasons, shares of Grayscale Bitcoin Trust (GBTC) are on the move and there will be a time when owning GBTC in our RoboInvestor Portfolio will make investible sense. There will be a pullback coming in the short-term that should provide for an attractive entry point. My always-thinking, always-learning AI-driven platform is sure to provide the timely buy signals that we’ll act on. 

Make sure you’re signed up as a new member this week so as to not miss out on when we pounce on the Bitcoin trade, plus I am coming to our members with two new trades this weekend that you definitely won’t want to miss out on. Our Winnings Trade Performance now stands at 90.00%! That’s 9 out of every 10 trades makes money in the RoboInvestor Portfolio. 

By definition, that’s called “killing it” in the investing business. I know of no other advisory service that is delivering this kind of performance that goes back to April 2018. I am super proud of our whole team that is committed to the fantastic prosperity being created by RoboInvestor and I fully encourage all readers of the column to join today and get in on this weekend’s next trades. Make 2020 a big year for your net worth and put RoboInvestor to work. It does all the heavy lifting and you make money 90% of the time you put your hard-earned capital at risk. Click here and let’s get rolling! 

 “I’m investing my own money in each and every stock as my AI platform identifies.”

And remember we’re not talking about day-trading here.  I’m looking for 50-100% gains inside of the next 3 months, so my weekly updates are timely enough for you to act.

Click Here – To See Where I Put My RoboInvestor Money

*Please note: RoboStreet is part of your free subscription service. It is not included in any paid Tradespoon subscription service. Vlad Karpel only trades his own personal money in paid subscription services.  If you are a paid subscriber, please review your Premium Member Picks, ActiveTrader, MonthlyTrader, or RoboInvestor recommendations. If you are interested in receiving Vlad’s personal picks, please click here.