Do This The Next Time You Have FOMO
The next time you have FOMO take a look at the slope of the trend. And maybe how many laser eyes you see on Twitter.
Joking aside here's what I'm talking about. Let's take a look at a chart of Ether or Ethereum.
When the price action indicated by the arrows above goes nearly vertical, price becomes unstable as market participants rush in leaving very few left to buy.
This is when you should be selling not buying or chasing. Managing your risk becomes more difficult when you are buying into a vertical move higher unless you have a time frame measured in hours, not days or weeks.
This is easier said than done especially when you are bombarded by headlines and it feels like everyone is making money but you.
FOMO is real and our emotions are difficult to contain but when the price of an asset goes vertical there's usually a correction just around the corner.
This is exactly what we are seeing in crypto this week, a deep correction not so much a dip. But in the world of cryptocurrencies, anything is possible and many coins are already trading well off their lows.
Breakout Watch - Silver 👀
Everyone has been talking about gold and gold stocks lately but silver shouldn't be ignored.
Silver has rallied back to an important level that has stopped it in its tracks on two past occasions. Will this third attempt finally be the time that silver breaks on through to the other side?
Above $30 the next logical area for silver to get to would be the $35/$36 area. A failure would more than likely see silver slump back down to the low $20s. Place your bets...
Uranium/Nuclear Energy Stocks Update
Last week I pointed out a breakout in uranium/nuclear energy stocks that I was watching closely. Here's what I had to say and the chart I posted...
Uranium/nuclear energy-related stocks have been in a bear market for more than a decade.
In the last five years, price has been building a base trying to put an end to the persistent downtrend.
There's a saying about breakouts from long bases - the bigger the base the higher in space?
Let's see what happened...
After URA (Global Uranium ETF) broke out, it put in a high near $23 and then came back down to test the breakout area.
So far it's been a successful test as buyers stepped in right at the prior breakout area and it looks like it has now become support.
Right now uranium/nuclear energy-related stocks remind me of cryptocurrency in late summer of 2020. Back then no one wanted to hear about crypto but myself and PFT members were quietly positioning ourselves to profit from a potential rally.
We all know what happened over the next few months. Crypto went on a tear. It has become a hot topic lately but I prefer to look where others aren't and very few are looking at uranium stocks.
I have no idea if this will become a popular trade or not but the risk-reward at this point in time continues to look very attractive.
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