by Nick Hodge
Publisher’s Note: I’ve been doing free weekly video updates about the market over at
Daily Profit Cycle. They give real insight into how I’m seeing the markets in real time, and how I’m responding to it with my own capital. It’s a great compliment to the premium research we offer over there. Remember, you need to sign up over at
Daily Profit Cycle to be getting content like this. See below for what I was telling readers over there yesterday.
—Nick
Bloodbath in the markets, as it was last week.
And I'm going to sound like a broken record in that I think it's another opportunity to buy some select sectors and names at a discount, including cryptocurrencies.
I thought it was funny this week that there was a euphoria reached in the crypto market with Dave Portnoy and others putting out videos, talking about the shitcoins they’re backing, or otherwise talking about cryptos going to the moon.
And if you're paying attention this week, you have to wonder which direction the moon is because Bitcoin's now been cut in half from its highs above $60,000 in just a month or two.
If it pierces down through $30,000, Bitcoin is going to have some more pain ahead.
I'll get back to cryptos in a second, but the main point I want to make today is that I still don't think this bull market euphoria is over.
I don't think the era of cheap money is over.
I don't think that stocks are done going to record prices.
And I'll talk a little bit about why, and then I'll talk a little bit about what I was doing as a consequence of that line of thinking.
VIX still did not break out above a 30, not even above the level it was last week when everyone thought the world was going to end.
I would reiterate that with indices near record prices point moves are smaller in percentage terms.
And so stocks have only sold off to where they were last month. I'm talking about the S&P 500.
It hasn't even gone below where it was in April, but everyone's wondering, is this the start of something bigger? Is this a big correction? A change of the cycle?
I still don't think it is.
I guess I would also point to cannabis stocks, which is sort of a weird thing to point to, but they're holding up quite well in the face of the selling that we've seen the first three days of this week.
The cannabis stocks are holding up real well, and you would think that if this was the end of the euphoria, or the end of the bull market, the speculative fields like cannabis would be selling off harder.
And I've been recommending cannabis stocks recently, even had a take out in one last week for 100% gain in Family Office Advantage.
So I don't think it's time for the general markets to turn around to the downside just yet.
And so I was placing buy orders this week, and I'll run through those.
I was buying oil stocks. I recommended another oil ETF last week in Foundational Profits, and we're up on that. I was bidding on oil stocks Wednesday morning.
I was bidding on rare earth stocks Wednesday morning.
You'll notice both of those are in the commodity field, because commodities are still inflating despite a brief pause recently.
And then would point back to cryptos to wrap it up, because I'm not a crypto naysayer. In fact, I'm bullish on Bitcoin. I'm even bullish on Bitcoin long-term here. And I think it's a buying opportunity.
I also think that there's a big future in digital assets.
And so I think this is an opportunity if you've been waiting for a pullback in that sector to take a look at some of the names that have been too high flyers to buy into over the past couple of months; you've got a real sell-off in that sector here.
Lastly, just to wrap up on gold, it's done quite well over the past month, moving up to the high $1800s before pulling back just a bit.
And I think if you get any more pullback here in gold, it's time to start looking at quality positions again.
Here is one of the ways we’re doing that.
Call it like you see it,
Nick Hodge,
Publisher,
Resource Stock Digest
Nick Hodge is the co-owner and publisher of Resource Stock Digest. He's also the founder and editor of Foundational Profits, Family Office Advantage, and Hodge Family Office . He specializes in private placements and speculations in early stage ventures, and has raised tens of millions of dollars of investment capital for resource, energy, cannabis, and medical technology companies. Co-author of two best-selling investment books, including Energy for Dummies, his insights have been shared on news programs and in magazines and newspapers around the world.
*Follow Nick on Twitter.