CJ’s BACK! He’s Talking Markets with Tom in 30 Mins
I’m back in the saddle today to talk about where this market is going with Tom Gentile.
I’ll also be analyzing some of my favorite signals and volatility band breakouts while talking with Tom about the crypto markets, inexpensive options, and a few spread trades.
It’s always fun, educational, and profitable when Tom and I get together, so please join us!
Click here to tune in at 10:30AM ET on Money Morning LIVE.
PENNY HAWK HIGHLIGHT: ETHE
A lot of Penny Hawks have been wondering how they should invest in cryptocurrencies.
Which is why today I’m going to highlight one of the largest digital coins on the market, Ethereum (ETH).
At the time of writing, ETH is trading at $3,512… but we’re going to play this coin for $35.
That’s right, while everyone else is forking over thousands of dollars… we’ll only be spending 1% of that price.
We’re going to do what every intelligent investor does, manage our risk while chasing great rewards.
In this case, instead of buying the volatile asset itself, we’ll buy shares of a fund that tracks the asset’s prices.
In this case, we’ll be playing the Greyscale Ethereum Trust (OTCMKTS: ETHE).
LET’S GET TECHNICAL
Cryptocurrencies have been on a technical break lately as we’ve seen Bitcoin (BTC) and ETH post some short-term selling.
But it appears one of these cases is providing another OTC opportunity as shares of ETHE are positioned for a quick move higher, again.
This isn’t the first time that we’ve traded ETHE.
In fact, it’s the very first Penny Hawk stock I recommended.
And right now we have another opportunity to play this name, this time with a potential short-term target of 30% as my next technical target for ETHE is $45.
There are a lot more technicals that favor this play.
First, the recent pullback has ETHE shares bouncing from the trader’s trendline, their 20-day moving average.
The 50-day moving average also remains in a bullish trend, suggesting that the crowd is still in buying mode when it comes to the general technicals for ETHE.
Not to mention, the current Fibonacci retracement from the October’s 2020 bottom to this year’s highs, signals that ETHE shares just bounced from support at the 25% retracement level currently residing at $33.66.
Put all of this together and we’ve got another outpouring of technical buying that is likely to push shares first through the round-numbered $40 level followed by a challenge of the $45 price shortly afterward.
ACTION TO TAKE
You know, there are so many more opportunities on the market besides the over-the-counter stocks.
Today, we traded a $35 OTC stock… but there are plenty of other stocks in this price range for you to play.
In my elite Night Trader research service, I bring you the best trades I find on the overall stock market.
The New York Stock Exchange… the Nasdaq… wherever these opportunities are – I find them and show them to my Night Traders.
For more information on this elite service, please call 1-877-211-3024 or click here for more information.
Until next time,
September 09 2021