I’ve said it before, and I will say it over and over again – the trend is your friend until the end.
We recently saw a dramatic example of this in Bitcoin (BTC).
The cryptocurrency swept to a new all-time high of $64,829.14 on Tuesday, following the Coinbase (NASDAQ:COIN) IPO. But after this “buy-the-rumor” rally, the inevitable “sell-the-news” drop followed on the weekend.
We see this sort of trend happen all the time, no matter what the asset is, and we can use it to position ourselves for future profits in all sorts of different investments.
When I say, “trend,” I’m talking about the 50-day moving average.
I’ve been looking at the 50-day moving average of different stocks across multiple sectors, and my technical data is showing me that the market will follow the same pattern we saw in BTC this past week.
Now, zooming out to other assets, stocks will rally higher over the new few weeks before crashing through an inevitable selloff.