The rise of the AI cryptocurrenciesThere's a cryptocurrency related to AI called PAAL AI that has surged 2000X from its low last year. I know, it surprised me too!
Afterward, I examined some of their partners. One of the most affordable in terms of market capitalization, at just $1.7 million, is VUZZ AI.
While I'm uncertain if it will follow the same trajectory, I believe it's worth noting.
On February 8th, 2024, they announced that VuzzMind joined the Google Cloud Partner Advantage Program, which is quite impressive!
Smallcaps
DEFI/USDTDespite the current challenges faced by DeFi since the time of publication, it is supported by a robust foundation and a dedicated team. Long-term prospects appear promising. In the short term, if DeFi maintains support above $0.2 after a retest, the next targets to watch for are the $0.27 zone followed by the $0.38 zone.
LAI/USDT
LAI has demonstrated robust momentum, indicative of the project's strong fundamentals. However, it's crucial to note that LAI has already experienced a significant 10x increase in 2024, introducing a higher level of risk for potential buyers at the current point. Please carefully assess this risk before making any decisions.
S&P 500 prime for a correction, BUT are we done with the run?How long do we stay below 5400 - SP500? is the real question. Are we going to see a sideways range through the fall? Do we get a rip roaring 10-15% correction and "L" or even better "V" recovery? The path does not matter as much but here is my commentary anyway.
I think that we see a temporary high in early April as we power through the rest of Q1 earnings then take a breath.12% correction? -> 480 looks like a good support? over a couple months? May usually sucks, do we see a bottom in May with the "sell in May and go away" crowd? But I cant imagine much of a stay there with a gap down 5% bull run or a 3% turn around Tuesday. Not to mention the June cut expectations that will get early mover money flowing.
I think the news goes with the fed cuts rates minus some black swan. You can almost mark our cycles to the fed rate decisions over the past 3-4 years. I could see a build up into June with expectations of rate cuts.
Inflation remains in a downward trend. Manufacturing has been contracting. The big R word won't go away! Tax returns may stem a few more higher inflation readings that scare the market. Good correction fodder. But also good rate cut fodder.
My Elliott wave charting (my own work) tells me that we could be near the top of wave 3 with a wave 5 to go. (Mind you I believe this is part of large wave 3. LETS GO 2025. Years of the bull. ROARING 20s.)
Billions of dollars of stimulus sloshing around. Intel microchip plant in IN. Ford Blue Oval in TN Toyota in NC.
Look at United Rentals..
Looking at their revenue a 40% increase since pre stimulus. 300 % increase in market cap in the same time frame. Maybe you want to say "but Zaphod... inflation". Even if you say the price has doubled for market value rentals, that is still 150% increase in expectations. Growth is expected with a 20 PE.
That is a massive amount of building. Building infrastructure to support technology advances, our massive vehicle trash pile, the AI revolution, war machines, airplanes etc... Billions of dollars, then billions more dumped into these projects.
Small caps and medium cap: Russell 2k, Even split SP500: The catch up trade could certainly drive us higher into 2025. All the billions that people just cashed out of Apple and Tesla(watch out below!), just looking for a new home. Let the rate cuts come and watch the second half of this year explode. 5800?
Final note for today: exponential growth is going to continue until the collapse of society. 2% inflation charted is still exponential. Stay in the market, be a bull, you win more. You will hate the wild rides down unless you are patient and GREEDY when the fear is real.
I am obviously making all this up to fan my biases so do your own speculating. Comment the thoughts below.
GATI long 160 add 150sl need to be close below 143
despite break high with above average volumes it kept retracing back . maybe third times the charm
RiskMastery's Breakout Stocks - FFG EditionWelcome to RiskMastery's Breakout Stocks - Stocks with breakout potential.
In this edition, we'll be looking at ASX:FFG ...
I believe this code is at a point of potential volatility.
If price can hold above $0.035 ... Bullish potential may be unlocked.
My key upside targets include:
- $0.046 (Conservative)
- $0.059 (Medium)
- $0.081 (Aggressive)
If however price falls below $0.022 ... Bearish risk potential may be unlocked.
(My key risk targets - C, M,& A - are as noted on the chart)
Enjoy, and I look forward to being of further service into the future.
If you'd like to connect, feel free to reach out and comment below.
Mr RM | Risk Mastery
Disclaimer:
This post is intended for educational purposes only - Publicly available RiskMastery information & content is not intended to be financial advice in any shape or form. Please do your own research and seek advice from a licensed professional before acting on any of the information contained within this post. This post is not a solicitation or recommendation to buy, sell or hold any positions in any financial instrument. All demonstrated trades are merely incidental to the educational training RiskMastery aims to provide. You are solely responsible for your own investment and trading decisions, of which should be made only according to your own opinion, knowledge and experience. You should not rely on any of the information contained on this site or contained in any RiskMastery material on any website or platform. You assume the sole risk of any trade or investment you elect to make. RiskMastery and affiliates shall not be liable to you for any monetary losses or any other damages incurred directly or indirectly, from your use, reliance or reference of RiskMastery materials, content and educational information. Thank you for your understanding and cooperation - We look forward to working with you into the future to navigate the fine line of trading and investment success.
U.S. Small Cap 3000 makes new ATH but U.S. Small Cap 2000 lagsU.S. Small Cap 3000 - TVC:RUA
✅A new ATH breaking above the Dec 2022 ATH
U.S. Small Cap 2000 - TVC:RUT
🚨Continues to demonstrate relative weakness
Light Blue by area on the chart 🔵
The U.S. small cap 3000 finally caught up with the other major indices such as the SP:SPX and NASDAQ:NDX as it previously has been demonstrating relative weakness failing to make new highs. That changed with the close of last week.
The U.S. Small Caps 3000 index is inclusive of the large cap 1000 Index. The 3000 index also uses market capitalization-weighted methodology. This means the larger 1000 companies have a greater impact on the indexes performance. This may explain why the 3000 index is out performing the 2000 small caps index by a wide margin. The Small caps 2000 is a better representation of the of small-cap stocks/businesses whose market capitalization is about $250 million to $2 billion
🧐 So the 1000 Large-Cap stocks direct the majority of the small cap 3000 index's performance. The heavy spearhead of the index is the 1000 large caps.
The S&P 500 Index tracks the largest 500 publicly traded companies, with exposure to 80% of U.S. stocks, compared to the U.S. Small Cap 3000’s 96% in U.S. Stocks
🧐 So the small caps 3000 index is a very concentrated index made up of primarily large U.S. stocks, even more concentrated by the S&P500
Divergence in Progress
On this chart you can see that in Dec 2022 the U.S. Small Cap 3000 index made a new high whilst the 2000 index made a lower high. This was a warning signal at the time that prices were about to roll over. This is not a guaranteed signal however it is something to watch out for and it appears to be in progress again at present. We can add it to our armory of risk indicators that can, when used in aggregate, help inform us of probable outcomes (not guaranteed outcomes). One would hope the Small Cap 2000 would base here or make a new high.
We can continue to watch these two indexes and see how they move together for an indication of things to come.
You can find this chart on TradingView and hit play to see how they are moving in lockstep.
PUKA
IWM Channel BreakoutIWM is trying to break back out of the channel it's been in since April 2022. It broke out briefly in late December, but was rejected. This second breakout attempt looks promising, and usually leads to ATH after this much consolidation. Lots of earnings reports this week, but if the market holds up, small caps should have some room to run.
IWM: 4 Hour Bull Flag targeting Top of Ascending ChannelThe IWM(Russel 2000 ETF) is consolidating in what looks to be a Bull Flag and if it breaks out the target would take us to the top of the macro Ascending Channel which would take us to the resistance zone of $200-$210. If I had to guess I'd say IWM could likely make its way up to that level by the end of next week.
Small Cap Stocks Follow The LeaderSmall Cap Stocks AMEX:SPSM AMEX:IWM are ready to make some big moves.
Take a look at this chart AMEX:XLG Mega Cap and the AMEX:SPY The S&P 500 have both broke near term resistance an imply a move upwards.
AMEX:SPMD Mid Cap and AMEX:SPSM AMEX:IWM Small Cap stocks should follow.
Lead Lag.
IWM: A $240 Target in 2024. Here's Why It's Doable.Flip on financial TV and you will likely hear a plethora of sellside strategists and buyside portfolio managers voice optimism about small-cap US stocks. Consider that the iShares Russell 2000 ETF (IWM) was easily in negative territory on the year back in October. Fast forward just two months and the small-cap ETF is up close to 20% total return in 2023. The quick switch has come about amid the group’s fastest move from a 52-week low to a 52-week high in its history. IWM is now poised to print its third-best two-month rally since its inception more than 20 years ago.
Is there more room to run? I think so. A breakout above the $200 mark, particularly on a weekly, monthly, and yes, even a yearly closing basis, is significant. Recall that IWM found support in the low $160s on a few occasions in the last year and a half after printing an all-time high above $240 in November 2021. Sellers flexed their muscles three separate times in 2022 and 2023 at the $200 mark. This $40 zone appears to be breaking in the bulls’ favor. That suggests a measured move upside target to $240 – close to the all-time high on IWM.
I see some near-term resistance in the $210 to $215 area – the range lows from 2021. Indeed, there is likely a significant amount of ‘dead bodies’ lingering above $210 that may look to supply the market with shares in order to sell at the breakeven mark. Still, the technicals appear positive despite some near-term overbought readings on IWM. Another cautionary signal is that the January through mid-March stretch has featured some volatility at times for the broad market, so the pace of the advance will likely slow. I remain constructive on small caps looking into 2024, though.
Small caps hitting the wall vs. goldWhile the small caps have provided fuel for a bull run in stocks to close 2023, they look to be running on empty when priced in gold.
Since breaking down in late 2021, the Russell 2000 has previously tested the Ichimoku cloud 3 times, swiftly bouncing downward on each attempt. In tandem with price, momentum has been rejected by a resistance level of 60% on the RSI chart.
Both indicators now are recurring, with momentum flattening at horizontal resistance and a doji reversal candle forming at the top of the Ichimoku cloud. While the Russell may continue to run in nominal terms going into the new year, its real value looks to roll over and continue into a secular downtrend.
$IWM $145 before $400+?I know everyone is getting excited about IWM as it's rallied a lot over the last couple of months, but I think it'll face some pain in the coming weeks before it really starts to outperform.
I am of the mindset that everything has it's cycle and I do think that going into the next bull market, that QQQ and SPY will underperform relative to IWM.
That said, I think IWM will have a 25% correction before the bull market really begins. However after that happens, I think IWM will go to hit new highs and top around $400 sometime in 2025-2026.
Support = $145
Resistance = ~$400
IWN Russel Index ETF ShortIWN on the reliable daily chart has been trending down for two in a descending channel as
shown on the chart with upper and lower trendlines drawn with the tool. The Stochastic RSI
oscillates in the interval between oversold and over bought and presently is well
overbought at nearly 100. While the RSI may double top like it did in July, it is at least right now
at the first top. The zero lag MACD is confirmatory with a K/D line cross well above the
histogram. I will play this by buying a put option at a strike of $ 150 for October 24
If Biden tries to prompt up the market to gain a re- election and is successful, this will get
stopped out. If interest rates are not pulled back by the fed soon, small caps will continue to get crushed.
On the other hand when rates are pulled back, they will be nimble and recover quicker than
the large caps and it will get stopped out. I think the fed will pullback rates to help Biden
out, although the fed is not partisan ?
Oil prices in their downward trend lend support to a slow fall off in the inflation rate.
What goes for IWN also goes for DIA.
IWM: Small Caps Continue the Rally, Eyeing $198Small caps have sprung back to life. The iShares Russell 2000 ETF (IWM) fell nearly 20% from its July 31 recovery high to a multi-year low in October of $162, undercutting the June 2020 mark of $164. Today, the move back up to $186 might feel like too much, too fast, but I see things otherwise.
Notice in the chart that IWM actually went through a more than two-week stretch of trendless price action. Technicians like to see such periods of consolidation within uptrends as healthy signs of rest and recovery, often setting the stage for the next leg higher. That’s about what took place.
Printing above $186 this morning in the premarket, outperforming the S&P 500 and Nasdaq 100 futures which are in the red, the little guys of the market are once again spreading some pre-holiday cheer. The move comes under the radar, too, considering that the focus among traders is primarily on bitcoin and gold. I also find it encouraging that IWM is up despite a bout of selling pressure in the bond market today, pushing the 10-year Treasury yield up a few basis points.
I’ll be watching to see if IWM manages to retest the July highs at $198, up to the $202 area – a long-term resistance range dating back to Q3 2022.
#IWM US Small caps at Significant levelThe US Small cap equities index - IWM - Russel 2000, has approached a massive level of polarity. This 160 level is where the old resistance has turned into support previously. Monitor for reversal and continuation upwards. A break of this level however could really cause massive technical damage. The bulls have their work cut out for them this week