Tesla (TSLA) continued its bullish streak and closed higher for its 10th consecutive trading day. Meanwhile, bitcoin (BTC-USD) continues to trade below the $60,000 benchmark, taking a bit longer to recover than in previous bearish periods. Should investors hold the stock overnight and trade in the morning? Data on the S&P 500 (^GSPC) shows that it can generate a higher return than some day trades.
Yahoo Finance reporter Jared Blikre joins Asking for a Trend to analyze the latest market trends and takeaways for the July 9 session
For more expert insights and the latest market action, click here to watch this full episode of Asking for a Trend.
This post was written by Nicolas Jacobino
Video Transcript
The NASDAQ S&P 500 hit record highs today.
Rate cut hopes remain intact after Fed Chairman Pao delivers his semiannual update to Congress and Yahoo!
According to Finance, Jared Brookie now joins us with more on the takeaways from the trading day.
Jared, that’s right.
Powell may be over the hill, but I want to talk about Tesla.
And it does, as Tesla now has this 10-day winning streak.
And let me just pull up our mega-cap heatmap and I’ll do a little chart action.
Uh, that’s not it.
But here’s Tesla, along with some of the other mega-caps down here, 3.71% is what it returned today.
And here is the year to date chart.
It’s something.
And let me just put some candlesticks on it.
First of all, we can see that we are barely moving into the green for the year.
Um, and this just happened a couple of days ago, but here’s this 10-day sequence and it’s starting from the bottom of this head and should actually reach the top of this head and shoulders, uh, the bottom that we were seeing there and you look at the longer term chart.
The negative trend has finally broken out of this negative trend, which is very encouraging in the short term.
So it’s on a positive note.
Where do we go from here?
Jared?
Is it 300 beyond?
You know, 300 is a big level.
Let me just erase that line there and you can see that 300 was a resistance line in the past, kind of there.
It’s also there.
So I think it would be a bit of a stretch for Tesla to hit 300.
But there might be a difficult passage.
We’ve seen someone defy the odds before.
Interestingly, we are currently in the midst of a 53-day, uh, 53-day rally.
It’s from this point to that point, there.
Remember, there are only five.
It’s been five years, but that’s 85% here, 85% here, 85% here.
It seems Tesla has traveled some distance.
So if that’s the case, it might end up stopping right there before regaining, uh, or recharging for the next move, which is what we’ll be watching for.
Alright, now guess what we’re going to talk about.
We’re going to talk about day traders vs. night traders and let me explain why holding a position overnight is more important than holding a position during the day.
This is a chart I like to update from time to time.
And fundamentally, you need the market.
It’s a two-part blitz.
Is it 9:30 or 4:00? It’s in purple here.
Where is it from 4pm to 9pm?
30 hours?
Imagine that every day at the closing bell you buy and sell in the morning.
It would make you more money.
That would have made you more money since the lows of October last year.
For what?
Jared gives his reasons for this.
I’ll tell you, if you think about it, the market is only open 6.5 hours, uh, 6.5 hours a day.
It is closed the rest of the time until 5:30 p.m.
So that means it’s closed about 72% of the time.
There are all sorts of things happening all over the world.
What I’ve discovered over time, and this goes back over 30 years, is that you have to be in the direction of the market overnight.
I have never seen a bull market where the overnight market did not gain more than the day market.
It’s just because of the time difference.
Let’s say you are an investor.
You’re looking at this, Jared. Is this something one way or another?
I mean, is that a concern for you?
Concern.
You know, it’s not a sale.
It was never a source.
It would be a source of concern for me if I didn’t see that.
Let me put it this way.
Because when we were in the 2022 bear market, that picture looked very different.
Um, the night market has seen a lot more sales than during the day, and that’s kind of the balance that we’re seeing.
It’s a simple percentage of time.
The market at night.
You have more time.
All right.
Third, Jared B.’s point.
Alright, we need to talk about crypto here on Bitcoin. Bitcoin is heading towards eventually up to 60,000.
Let me briefly describe what is happening with Bitcoin right now.
Um, I like to say that Bitcoin loves to cheat traders, and we’ve seen it time and time again.
Give me two seconds.
Here is our crypto heatmap.
And, uh, these are crypto stocks.
We want to get the actual token.
Here’s Bitcoin, uh, on a year-to-date chart and let me put the candlesticks here, we see that it’s just been in this consolidation range now.
It’s been broken for a few months now.
At the very end of April, beginning of May, it broke down.
Then he recovered quickly.
That’s kind of what’s happening right now, but you notice it’s taking a little longer.
The time it is taking is worrying.
That’s why I say that the number must be higher than 60,000.
Otherwise, I’ll probably use that as a resistance level.
And then it goes downhill from there.
So it looks like this, where it breaks above and it looks like this and it goes up to test that 75,000.
So that’s Bitcoin.
What about the other big chips?
What are they potentially telling me?
Of course.
So we just saw Bitcoin sort of break out of its multi-month range, with Ethereum doing something similar.
If we take this line here just below 3000.
We can see that we haven’t gone as low as a Bitcoin by taking out these previous levels here, but we are testing them.
So I think this is actually a more constructive chart than the one we’re looking at here, which is Ethereum.
And we can also discover Solana.
I also like the Solana theme.
You can see that this is actually the lower limit, this is actually the break-even point.
Brand.
Mark, uh, that also respects his lower limit.
So overall I give crypto a good shot to say the bull market is still here, but somehow holding on to 60,000 Bitcoin is a make or break question for me.
Alright, Jared.
Thank you my friend.
News Source : finance.yahoo.com
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