RIOT: A Strong Crypto Related Stock Up 30% Today and 84% Since July 17 – We Traded It, Did You?

The Entry Points

Stevie Swai

Hey hey everyone! It’s been a while since I’ve shared any of my trades with you. I tend to hit mostly singles and focus on slow and steady account building but every now and then I’ll hit a double which makes the trade worth writing about. And then if it’s related to something we’ve been talking about on the website in our pre-market comments, it makes it even that more relevant.

Scott shares an incredible amount of information here, like his stock list from April 2, which has performed amazingly well. And remember when he told us on January 9 that it was time to sell the pot stocks? He really nailed that one because it was downhill from there.

So recently, Bitcoin and the crypto related stocks have been back on the radar and he’s been getting us primed for these good moves. He’s been talking about Bitcoin and the cryptos since back in June (see below) to prepare us to start trading them again.

So a couple of days ago things started moving in the crypto sector and guess who wasn’t onboard. I was wrapped up in ARWR, another stock he talked about several times, which I’ve had several nice trades in. And I’ve been in and out of some of the Chinese tech stocks like IQ and BILI so I hadn’t been paying attention to what he had been saying about Bitcoin.

Luckily, he and I IM each other frequently during the day and he sent a message at noon on Monday saying, “RIOT forming a nice res line. Strongest crypto stock.” I took a look and well……. hello Beautiful! What a lovely chart. RIOT was now on my radar and after watching it for a bit, I took a position at 6.43 into that nice little reaccumulation area at around 3:00.

On Tuesday RIOT started rallying in the PM trading session so I sold half of my position at 7.44 for a 16% profit. Once the market opened, I sold another 1/4 at 7.88 for a 22.5% profit and then the rest at 8.13 for a 26% profit. It ended up rallying to 8.55 but I was on to other trades by then.

 

 

Did anyone else trade Bitcoin or the crypto stocks?

 

This is what Scott has had to say about Bitcoin and the cryptos in his pre-market comments:

From 7/24:

“More new highs in BTC, now up 45% from the lows, and 20% from the breakout area of 6900. Certainly, at a minimum, a chance to lock in some profits and move stops way up. I have given several discussions about BTC the last few days, gave several stocks to watch, starting discussing BTC on 6/22, well before the breakout. So now in BTC, we saw a backup, a reenergizing reaction, right off the 7800 res area, and then a blast to new highs. Several crypto stocks were discussed here in detail. They had backups, re-energized, and in premarket trading, some went to new highs for the move. On 6/22:

Bitcoin is adhering to a 5 month cycle. I will begin watching it more closely after July 4, for a rally into October. Of course like always, I need to see the markers start showing up to make me more confident of a setup forming – breaking of a low, EAs, SOSes, accum, reaccum. And to update something I posted last year, that the last huge accum area took 3 1/2 years from the top in Nov. 2013 to the breakout of that top in May 2017. That accum area, to me, started in April 2014, so the accum itself was actually 3 years. And it was 14 months, and 85%, til the low in Jan. 2015. Right now we are in month 6. So that gives some perspective for at least the next push back into 20,000. Also, I do believe it is in accum, ut there is the downside of the accum and the upside of the accum”

 

 

 

Discussed recently:

The breakout in BTC was discussed last week. What I was looking for to set up the breakout was first discussed on 6/22. That discussion from last week is below. BTC has gone to more new highs since the discussion, already rallied over 30%, and is getting back into 7800 resistance. The other cryptocurrencies, the sector so to speak, are really lagging BTC:

 

 

So the huge selloff in BTC, I have been generally avoiding it, but the huge rally yesterday, and the breakout above 6900. I left a comment 4 weeks ago. Keep in mind that BTC has already rallied over 25% from the lows:

In the June 22 post, commenting about BTC:

Bitcoin is adhering to a 5 month cycle. I will begin watching it more closely after July 4, for a rally into October. Of course like always, I need to see the markers start showing up to make me more confident of a setup forming – breaking of a low, EAs, SOSes, accum, reaccum. And to update something I posted last year, that the last huge accum area took 3 1/2 years from the top in Nov. 2013 to the breakout of that top in May 2017. That accum area, to me, started in April 2014, so the accum itself was actually 3 years. And it was 14 months, and 85%, til the low in Jan. 2015. Right now we are in month 6. So that gives some perspective for at least the next push back into 20,000. Also, I do believe it is in accum, ut there is the downside of the accum and the upside of the accum.”

So, what did I say in that comment above:

Of course like always, I need to see the markers start showing up to make me more confident of a setup forming – breaking of a low, EAs, SOSes, accum, reaccum.

Is that how it setup? Were there new lows? EAs? SOSes? accum? reaccum? Look at the charts below.

Here are a couple recent charts posted while I was watching it set up:

 

 

 

“..Also, notice the crypto stocks on there – MGTI, RIOT, MARA, DPW.  Breakouts in many of these stocks. I left a message on 6/22 in the comments section about BTC. That will be discussed in the morning, but in it I said that I will be looking for the next big rally in BTC – after July 4, and look for the setup to take place – that is how it played out. A few friends wrote to me recently, and I told them that I believe BTC was setting up for a breakout of 6900. I have been watching this, and identified the stocks to watch, looking at the trading ranges, the mid level breakouts and the upper level breakouts. I traded DPW today in and out twice. MGTI still long. RIOT was the best one, I missed it. Look at the beautiful breakout. And again, the mid-level reaccum, the mid-level breakouts, and look at the volume coming in on the mid-level breakout. Then look at the volume pouring in on the breakout of 4.90, and the retest and the abating volume. Here are the MGTI and DPW setups and breakouts. And go thru with the same perspective as with RIOT. You can anticipate the breakout with mid-level stuff, you can buy the bigger breakout, you can buy the retest, or you can try a trend absorption and/or reaccum trade once it’s fully in trend up mode. DPW had a couple nice pullbacks.”

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About traderscott 1071 Articles
Trader Scott has been involved with markets for over twenty years. Initially he was an individual floor trader and member of the Midwest Stock Exchange, which then led to a much better opportunity at the Chicago Board Options Exchange. By his early 30’s, he had become very successful in markets, but a health situation caused him to back away from the grind of being a full time floor trader. During this time away from markets, Scott was completely focused on educating himself about true overall health and natural healing which remains a passion to this day. Scott returned to markets over fifteen years ago where he continues as an independent trader.

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