How to Play Bitcoin and Oil This Week

Publisher’s Note: Every week, I’ve been recording a market update video and publishing it on Daily Profit Cycle. They are the perfect supplement for premium readers, as they fill in the gaps between recommendations and issues with a bit more macro color from me. You can use them to help your positioning in various markets. Following along with them for the past few months would’ve at least had you long oil long before other pundits were talking about it. Check out this week’s video and transcript, below.

— Nick

Nick Hodge here with Daily Profit Cycle, coming at you with another weekly video market update.

More of the same. You're going to get tired of hearing me say it. I was telling you last week amid the “carnage” that it still wasn't “the” big event. That stocks would go back up. That you should continue to buy.

And that's precisely what we've continued to see this week as stocks, as evidenced by the S&P 500 moving right back into all-time high range, and the volatility index (VIX), or the fear gauge, continues to move down and to the right. It didn't even pop last week higher than it popped the month before.
We've sort of been having these monthly freakouts, as it were. But the overall fear, or volatility of the market continues to recede, or abate, or go down. I don’t know how else to say that.

And that means stocks continue to go up and commodities continue to inflate.

I know we had a Fed meeting last week that lots of people were waving their arms about and ringing their hands over. They might raise rates in two years. I really don't care. It doesn't affect my positioning right now.

As I was telling you last week amid that FED meeting, the pullback in commodities was a buying opportunity, both in copper, and specifically in energy and oil, which is now back over $70 per barrel and oil stocks continue to perform phenomenally. 
I was out to premium members two weeks ago giving them new buy under targets in anticipation of this coming pull back.

And some of those price targets were hit beautifully last week amid that pullback so we were able to get some nice entries into copper and platinum group metals plays. Even starting to look at silver a bit more, and at some other commodities like helium, which you'll be hearing a bit more about for me soon.
What else happened in the market here this week? Cryptos got hammered again. Bitcoin was down below $30,000 this time.

Bitcoin is technically bearish. I was buying the previous pullback down to around $30,000 per Bitcoin. But this one to me feels a bit more like a falling knife. 
A lot of volume was coming into Bitcoin this week to the downside with less volume on the bounce.  I don't like it technically breaking below $30,000. I know it's recovered a bit, but I'm skipping over this dip for now and just watching that market materialize.

Otherwise, continuing with more of the same. Holding or adding to the positions that are working, which I just covered, keeping an eye as always on the S&P, the US dollar, rates, and of course the volatility index, which I went over today.

So get in there. Especially on the energy side of things, which continues to be the best sector in the market.

I'll be back with another update next week. 

Call it like you see it, 

Nick Hodge
Editor, Daily Profit Cycle

Nick Hodge is the co-owner and publisher of Daily Profit Cycle and Resource Stock Digest. He's also the founder of Hodge Family Office, the umbrella organization for his three premium services: Foundational ProfitsFamily 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 Investing for Dummies, his insights have been shared on news programs and in magazines and newspapers around the world.
*Follow Nick on Twitter.