We saw the spec end light up towards the end of last year and into January this year, while Bitcoin was still hot. Now, as many newbies are caught at higher prices, there's no one buying up fake promises, no one buying "going to the moon" calls, no one buying "get on this rocket" calls, and most importantly, no one to offload to, which is why I think runs stall after a few pips lately. We'll have to be patient until the next round of unsuspecting retail noobs jump into the market. Most of the ones currently sitting at higher prices have blown up their first trading account, lost their savings, thrown away their tax returns, or even worse, lost their house deposits.
Personally, I think we need a black swan event, similar to Brexit or Trump election, to re-ignite buying. We need something to wash out the last of the stale holders and bring about fear in the market. Looking at the XEC, it just had the death cross and it's finding resistance at around the 34SMA, and the weekly and monthly charts look even worse so that event might be in the next couple months. I reckon we need to see the XEC touch between 1370 and 1385 and hold before things will slowly start to turn.
That doesn't mean that nothing will fire, it just means we need to be more selective with our criteria for picking stocks. esports seem to be drawing a few in. Vanadium is firing. Uranium looking good too. Cobalt and lithium way off the boil.....probably the best time to go long. Nickel and graphite should go ok but I think gold and biotech might surprise. Rare earths still having a long snooze.
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