From the Trading Desk

Cryptos are on Fire; Stocks Shake off North Korean Missile Test

The two biggest stories of the day on Tuesday were certainly Bitcoin heading to 10,000 and North Korea launching another missile. First, North Korea has been quiet as of late. We did have some rhetoric from the isolated regime, but military activity hadn’t been noticed until Tuesday. Good news was the missile fell in the ocean. However, the regime claims its nuclear arsenal is now able to hit the United States. The market was certainly spooked as the entire market came well off its highs. It appeared some panic was hitting the market. Fortunately, the missile landed in the ocean and stock prices returned to the highs of the session. In addition to the North Korea fireworks, Bitcoin continues its historic run as the cryptocurrency hit 10,000 for the first time Tuesday. At Big Wave Trading we are monitoring quiet a few cryptocurrencies and had members buying ETH and LTC during this past weekend’s all-time high breakout. We continue to see positive price action regardless of its stocks or cryptocurrencies. Stick with the trend and ride it hard.

GOOGL had a tough day Tuesday after showing some serious strength on Monday. The stock fell 81bps on the session even after notching a new all-time high. FANG stocks continue to act well with NFLX looking to break back into new all-time highs. Most will think stocks hitting all-time highs or any asset for that matter as a sign we are going to collapse. Market tops take quite some time and now we continue to see bullish action. Most high-end growth stocks will top out after their price exceeds their 200-day moving average by more than 2x. We have some time.

What would be nice is some sort of consolidation period where volatility can show itself. We do need volatility to produce some serious gains, but for now we’ll accept what the market is giving us at this very moment. There is no need to play a hero. Let the pundits fall all over themselves trying to pick a market top or even get over extended on the long-side. We have a strong process of selection and risk management. We advise to anyone and everyone they should too!

Have a great day of trading!

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