The markets love a good trend, and fewer subjects have been hotter the past couple of years than cryptocurrencies and special purpose acquisition companies, or SPACs.
And the one thing that’s bound to happen when a volatile market trend gets too popular…
Traders who don’t know any better will dogpile in… and the bottom falls out.
If you’ve been following me for the past year or more, you know I don’t really get involved in crypto or touch SPACs, either.
And I hate to say, “I told you so…”
But I’ve told you before, and I’m going to do it again…
Avoid the Crypto and SPAC Crash
Traders and the media love to crowd around figureheads like Chamath Palihapitiya and Cathie Wood.
Every time it happens, loads of investors get sucked into meme SPAC stocks like Clover Health Investments Corp. (Nasdaq: CLOV) or SoFi Technologies Inc. (Nasdaq: SOFI) — and they get left holding the bag.
And earlier this week, Bitcoin dropped below the $30,000 mark while a lot of the other big cryptos like Dogecoin and Ethereum went tumbling with it.
If you look at crypto, especially month over month, trading volumes are down around 30%.
For another volatile market trend in action, you can also look at recent SPAC debuts… and see one sell off after another. Even when SPACs find acquisition targets, Mr. Market just doesn’t care anymore. Take a look at the Defiance Next Gen SPAC Derived ETF (NYSEARCA: SPAK)…
This is an ETF with top holdings in popular stocks like DraftKings Inc. (NASDAQ: DKNG), Virgin Galactic Holdings Inc. (NYSE: SPCE) and Vertiv Holdings Co. (NYSE: VRT)…
They’ve been in freefall since the beginning of June.
Volatile Market Trends Gone Bad
The market is catching on to these trends, and the era of easy paydays on the crypto and SPAC lotto tickets, is over now.
For my money, tried and true methods like following institutional order flow and trading options, limiting your risk with options spread strategies, and selling premium is the best bet to building wealth in this market.
Check out the quick video below and let’s talk about these volatile market trends. Leave me a comment and tell me if you think crypto and SPACs are dead as disco, or are they the future of trading.
As always, you can follow me on social media @lanceippolito on Twitter and Instagram. And don’t forget to subscribe to our YouTube channel if you haven’t already so you can be notified as soon as we post our next video!
P.S. Most folks don’t know this… but traditional investing research is becoming obsolete.
That means the hours and hours spent studying stock charts and squinting at spreadsheets is a massive waste of time.
Traders need a new way to level the playing field against Wall Street and its lightning-fast trading activity — without putting their entire portfolio at risk.
And my Weekly Blitz Alerts can help traders do just that.
Blitz is where I show everyday investors how to capture predictable profits with trades that could pay out BIG — overnight.
