The Daily Breakdown looks at the start of earnings seasons, the record rally in crypto, and the key economic reports for this week.
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Monday’s TLDR
- Earnings season set to begin
- BTC hits record highs
- NVDA gains steam
What’s Happening?
The Crypto Rally. Bitcoin hit another record high, recently surpassing the $123K mark, and Ethereum, Stellar, Ripple, Uniswap and many others have been performing well too. The rally comes as “the US House of Representatives prepares to consider key industry legislation during its ‘Crypto Week’ starting Monday,” according to Bloomberg.
Remember, for investors who can’t trade or aren’t comfortable trading cryptocurrencies outright, they can consider ETFs for BTC and ETH. On the BTC front, IBIT remains the largest ETF by assets, while also supporting options trading.
Earnings Season Starts. JPMorgan, Wells Fargo, and Citigroup report tomorrow, marking the start of earnings season. Analysts expectations are low for this quarter, but with stocks near record highs, Wall Street will need a good showing. Bank of America, Johnson & Johnson, Taiwan Semiconductor, and Netflix will also report earnings this week. Inflation and
Consumer Spending. We’ll get the latest inflation figures with tomorrow’s CPI report and on Thursday, we’ll get the latest retail sales results. Bulls are hoping for in-line or lower inflation and better-than-expected retail sales.
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The Setup — Ethereum
Ethereum is going for its first daily close above the key $3,000 level since February 1st. While ETH has hit this level in four of the last five sessions, it has failed to close above it. Bulls are hoping that the recent momentum in Ethereum can continue to power higher in the days and weeks ahead.
Ultimately though, bulls are looking for another charge back up to the key $4,000 area, which has been resistance for ETH as noted on the chart above. Notably though, ETH was able to get above its 200-day moving average, a measure that had been resistance throughout Q2. Now they are hoping this moving average will act as support in the future.
On the ETF front, ETHA remains the largest ETF by assets, while also supporting options trading. To learn more about options, consider visiting the eToro Academy.
What Wall Street Is Watching
Pudgy Penguins jumped more than 25% in weekend trading, as investors continued to dive into some of the smaller cryptocurrencies. After a major breakout three weeks ago, PENGU has now climbed more than 250% amid a three-week win streak. Check out the chart for Pudgy Penguins.
Nvidia was the best-performing Magnificent 7 stock last week, rising 3.5% and marking its 11th weekly gain in the last 12 weeks. Shares are up more than 60% amid that stretch, helping to propel the stock to a $4 trillion market cap and helping lead the resurgence of semiconductor stocks, as the SMH ETF hit record highs last week. Check out the fundamentals for Nvidia.
Disclaimer:
Please note that due to market volatility, some of the prices may have already been reached and scenarios played out.