• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Stock Cryptocurrency Prices in the Spotlight, Small Caps Now in an Uptrend
Stock

Cryptocurrency Prices in the Spotlight, Small Caps Now in an Uptrend

by December 5, 2023
by December 5, 2023 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

The stock market seems to be pulling back after last week’s strong rally. It’s a healthy sign, given the incredible performance in November. Jeff Hirsch, editor of the Stock Trader’s Almanac, said that price action in early December tends to be flat.

This week, we’ll get the November nonfarm payrolls and the JOLTs report. The labor market is still strong, and we’re likely to see that when the data is reported. The market is expecting 175,000 new jobs, which is a strong number. And unemployment is expected to remain at 3.9%. If the data is much stronger than expected, will there be a selloff?

We need to see signs of inflation cooling before the Fed starts cutting interest rates. Although the Fed says they want inflation to be at 2%, we’re far from that level. But the stock market has priced in four interest rate cuts in 2024, which is the main reason behind November’s stellar rally.

The Bitcoin Rally

Bitcoin has benefited from the narrative. The cryptocurrency hit a 52-week high, closing above 42,000 (see the daily chart of Bitcoin to US dollar below).

CHART 1: DAILY CHART OF BITCOIN TO US DOLLAR. $BTCUSD broke out from its July highs in late October. Since then it’s been going higher and higher.Chart source: StockCharts.com. For educational purposes.

In late October, $BTCUSD broke above its July highs, which was considered an important resistance level. Since breaking above this level, the cryptocurrency has soared. Where to next for Bitcoin? Looking at the weekly chart below, the next level to break above would be the March 2022 high.

CHART 2: WEEKLY CHART OF BITCOIN. When the MACD line crosses over the signal line close to the zero line, it’s often a very bullish indication. Look at what happened in October 2020. Chart source: StockCharts.com. For educational purposes.The MACD line has crossed above its signal line, and it happened close to the zero line, which is considered a bullish indication. Look at what happened when a similar situation occurred in October 2020.

On the daily chart, the MACD crossover of the signal line indicates further upside potential, but not as much as the weekly chart suggests. Since $BTCUSD is a volatile asset, you want to watch the daily chart for entry decisions, and perhaps an even smaller time frame to make your exit decisions.

Gold prices also displayed interesting price action. The shiny metal hit a record high of $2152 per ounce but then retreated sharply, which was interesting given there hasn’t been a drastic reversal in interest rate trends. But realistically, it makes sense. When gold hits a high, why not take profits and earn some interest on the cash? So, it may be a short-term move. It’s worth watching gold, since investors use it to diversify their portfolio holdings and as a hedge.

The SPDR Gold Shares ETF (GLD) is popular among retail investors. It follows gold prices relatively well (see chart below).

CHART 3: GOLD HITS A NEW HIGH, BUT SELLS OFF. Investors sold off their gold assets in a rush after price hit an all-time high.Chart source: StockCharts.com. For educational purposes.

Don’t Forget the Small Caps

One asset class that closed higher today is small caps. This group is showing strength after getting trampled. The market internals continue to support the trend higher, which is encouraging, especially after Hirsch reiterated that small-caps tend to perform well starting in mid-December. Are they getting a head start on the rally, or can we expect a big rally in the middle of the month? It’s something to watch.

CHART 4: SMALL CAP STOCKS GAIN STRENGTH. After being trampled, small-cap stocks are starting to rally and trend higher.Chart source: StockCharts.com. For educational purposes.

The Bottom Line

Early December should be an interesting time in the stock market. Keep an eye on the typical seasonal patterns at this time of the year, especially in a pre-election market. How December and early January play out will indicate how the market will perform in 2024.

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

You Might Also Like
  • Sector Spotlight: GOOGL and Double Benchmark RRGs
  • S&P 500 Regains its Uptrend
  • GNG TV: Rotation into Industrials, New “Go” Trend
  • Discover the Hottest Sectors of 2024!
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Is Every Stock on the Planet Overbought?!
next post
DP Trading Room: How Bad Data From Major Indexes Leads to Bad Analysis

You may also like

Higher Gold Price Coming, But Investors Must Be Patient

January 30, 2024

Remember Those 3 Signs of Inflation to Watch?

January 25, 2024

Market Research and Analysis – Part 4: Trend Analysis Continued

April 4, 2024

Tech Stocks Plunge: What This Means for Investors

November 16, 2024

High-Yield Opportunities for an Uncertain Market

May 13, 2023

Is This Market Resilient Or What?

May 5, 2023

Sector Rotation is Giving Conflicting Stories!

October 16, 2024

Mish’s Outlook 2024 is Here — Macro to Micro

December 21, 2023

GNG TV: Active vs. Passive Investing

January 19, 2024

Here’s My Long-Term Perspective on U.S. Stocks

May 6, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout, pulls outlook

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025
    • The Unpredictable Stock Market: How to Make Sense of It

      May 8, 2025
    • AMD CEO calls China a ‘large opportunity’ and warns against strict U.S. chip controls

      May 7, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,631 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,339 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,320 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,302 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,186 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout,...

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    It all Started with a Big...

    September 2, 2024

    Is There “Blood in the Streets”...

    August 22, 2023

    Apple Blasts Through $200 On AI...

    June 12, 2024
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here