Bitcoin / ARK 21Shares Bitcoin ETF (ARKB)
Bitcoin is hitting a FOMO rally of FOMO rallies as the cryptocurrency moved into what I refer to as a “Volatility Surge.” These volatility surges start with a large one-day move followed by a steady trend higher as the “crowd” chases the asset higher.
Bitcoin had been consolidating just under $52,500 for the last two weeks as investors contemplated the assets next move. That consolidation is now resulting in a bullish surge in prices.
The last time we saw a Volatility Surge in Bitcoin was February 9 when its price jumped 4%. That one-day move triggered a six day, 12% rally.
Today’s jump is likely to be the first step on the way to $65,000, a 15% rally from current prices.
Remember, we still have assets flowing into newly created ETFs and the upcoming “halving” as fundamental catalysts for the ongoing rally.
Beyond Meat
OK, it’s just my thought on the Beyond Meat (BYND) product, but their earnings results really did suck.
The company missed earnings expectations by a w-i-d-e margin, but shares are trading 50% higher in early trading on Wednesday morning.
The stock pop is due to the company “right sizing” their operations while lowering their estimates for the next quarter. In other words, they are cutting operation costs and expecting to make less money over the next three months.
OK, here’s the rub. BYND shares were HIGHLY SHORTED with a short interest ratio of 8 and more than 35% of the stock’s float held by shorts. This means that this morning’s rally is nothing more than a short squeeze.
Expect BYND shares to return to their sub-$10 price very soon as new shorts open positions on the stock and those lucky folks that may have bought BYND at $7.50 take profits quickly.
eBay
Don’t call it a comeback as eBay (EBAY) shares move into a bull market trend for the first time since January 2022.
The stock is moving higher on better-than-expected earnings results and management’s announcement of an 8% increase to the stock’s dividend along with another $2 billion in share buybacks.
Not to be outdone by anyone, eBay announced their new developments of generative AI descriptions that are seeing high adoption rates among sellers.
With a bullish trend from the stock’s 50-day moving average and the likelihood that eBay will attract upgrades from Wall Street, the stock has a target of $52.50 in my book for the short-term.
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About the Author
Chris Johnson (“CJ”), a seasoned equity and options analyst with nearly 30 years of experience, is celebrated for his quantitative expertise in quantifying investors’ sentiment to navigate Wall Street with a deeply rooted technical and contrarian trading style.
