Markets up 5 weeks in a row

The big thing this morning from the weekend is the break over 40k for Bitcoin. I have been dollar cost averaging into Bitcoin over the last 3 months on expectations of a spot ETF. And maybe that is happening. All holders of Bitcoin related stocks such as COIN and MSTR should also be looking at the pre-markets and feeling good.

Markets are up 5 weeks in a row. That has happened before as recently as May/June of this year. So, the chances of a down week are higher but no one should be surprised if market keeps going higher.

Here is how the trending heat map looks like using daily charts:

From the charts the IWM actually looks the strongest right now and the QQQ the weakest. There seems to be a rotation from the Big Tech stocks to the broader market.

Here is the QQQ daily chart:

There is indication of MACD being extended and both the MACD line and the signal line are curling over. The 10day SMA has also started curling over a bit. The RSI is also on the higher side, but it can stay on the higher side for a long time.

Pre-markets look a bit weak this morning as I write this. But I note that the markets are still trending bullish. Unless I see them turning over to the bearish side, I am not going short. Having said that, I will also wait to add to longs.

Here is the IWM daily chart:

We can see clearly that there is no sign of curling over for anything. The MACD and the SMAs are both pointing straight up. The IWM is also up in the pre-markets. So, seems like the markets continue to favor rotation out of tech stocks into the broader markets.

Among the Big Tech stocks NVDA certainly seems to be curling over close to the bearish side. TSLA also but to a lesser extent.

Strategy

The markets remain bullish overall but could be at a reversal stage. I am going to wait, watch and let the market come to me.