Quick Market Wins
312: My Top 8 Picks for Crypto & Stocks This Week
Hope everyone had a great long weekend.
Should be an interesting week for markets so wanted to outline the 10 assets I am watching this week. These are names I think could move up this week or in the short term (in the next 2-3 months).
You probably spent too much on tequila sodas, zyn, food, and other caveman essentials this weekend so let’s see if we can pad those brokerage and exchange accounts with some extra dinero while we all head back to the office.
I am not a certified financial advisor and this is not formal investment advice — you should always invest according to your own risk tolerance and parameters AND never invest or trade with more than you can afford to lose. You wouldn’t want to not be able to afford your $4,000 dollar rent in NYC or a dinner for your smoke-show girlfriend would you?
The last few weeks have been interesting in global markets — we had the Japan induced sell off in which markets sold off steeply overnight and risk on names cratered for 48 hours before reversing. We also had the highly anticipated earnings release from NVDA 0.00%↑ which was solid — but evidently not enough to inspire rapid buying from Wall Street or Retail. Many folks forget the market is forward looking and for that name to REALLY run again it would likely to have to be insane numbers or hyper aggressive guidance moving forward.
My gut tells me this week is going to be more green than red barring any big lack swans or unexpected events, at least for a handful of names that were lackluster last week. Important to note though traditionally September has the following characteristics (historically):
Negative Returns: On average, September has shown negative returns more frequently than any other month. This trend has been observed across various decades and market conditions in the past.
Seasonal Patterns: Some analysts attribute the September Effect to seasonal factors, such as the end of summer, when investors return from vacation and reassess their portfolios. There is also a belief that mutual funds and other institutional investors might sell underperforming stocks before the fiscal year-end, which can contribute to market declines.
Volatility: September often sees increased volatility as traders, size lords, and investors adjust their positions after the summer lull and after returning rom Italy, France, or a summer house in the Hamptons. This adjustment can lead to more pronounced market swings.
Still — I think the big thing we have in play here is the US election and the expected rate cuts before year end. The team at Hedgeye and other institutions have covered the theory that money managers, Wall Street, and the elite want to juice what they can through the end of the year and then worry about the market narrative next year when there is more clarity on the housing market, inflation, the Fed’s policy, and the winner of the presidential election.
Makes sense to me — there’s this predominant sentiment that rate cuts are always bullish, and while that’s not necessarily true maybe if enough people believe that we can pump hard off the initial momentum and excitement into the November election where the future of the US hangs in a balance.
Plus we have to try and lock in gains now before we all get taxed on realized gains and have our neighborhoods raided by Venezuelan prison gangs, but I digress.
Crypto is a laggard right now — bit frustrating but we will cover some of the sleeper picks I am watching right now outside of Bitcoin to drive returns when the bull market returns in earnest. I’ve said it many times before and it bears repeating — this wasn’t going to be up only into the andromeda galaxy, not with the entrance of big institutions and money into the crypto space.
Your patience, conviction, and emotions will be tested moving forward and only those who can resist apeing everything into temporary meme narratives and ponzis are going to see the fruits of their labor.
Today we’ll cover a handful of picks in crypto and equity markets that I think can print in the coming months.
Whether you’re looking for some names to add to your long term holdings or retirement account, or if you’re looking for a fun play to swing for the fences on, there’s some good stuff to chew on. As I said earlier, I generally think markets will continue to do well through November as social hype, political headwinds, and institutional games ramp up into the end of the year.
#1 might be surprising but in Friday’s market close and rumors online are suggesting she might have some more juice in her.
“Thousands of experts study overbought indicators, head-and-shoulder patterns, put-call ratios, the Fed’s policy on money supply…and they can’t predict markets with any useful consistency, any more than the gizzard squeezers could tell the Roman emperors when the Huns would attack.”
Peter Lynch