Apple soars, bitcoin and ethereum collapse: Tuesday’s market performance

Yahoo Finance Jared Blikre joins Asking for a Trend to analyze Tuesday’s market trends.

Apple (AAPL) hit a new all-time high, rising about 7% intraday. Blikre notes that the likelihood of this move being a false breakout is an unlikely high-risk scenario.

Inventory volume in the overall market has plummeted recently. Although volume is currently lower than average, Blikre believes it will normalize over the summer.

Finally, bitcoin (BTC-USD) and ethereum (ETH-USD) are having their worst day in five weeks, which he expects will normalize in the coming months.

For more expert insights and the latest market action, click Here to watch the full episode of Asking for a Trend.

This post was written by Melanie Riehl

Video transcription

And the NASDAQ S and P 500 closes at a new high as Apple Ss with a record here with more information on the trading day.

Let’s go straight to Yahoo.

Jared Blicker of finance.

Jared.

Thanks, Josh.

Guess what?

I’ll call it a comeback because Apple hasn’t gone anywhere in years.

You can see that today it is up 7%, the best day in years.

Here’s what it looks like today.

I’ll show you the last two years and you’ll understand what I mean with this breakup.

Uh We weren’t going anywhere for quite some time here and this is just recently, we can see over the last five years, including the whole pandemic.

Indeed, there was a lot of lateral action here.

So we’ve gotten to new nominal highs, but now we’re finally finding out what’s interesting about this.

And by the way, let me show you our takeaway board, beautifully prepared for us.

This is Apple hitting a new all-time high, but I did a study and so I took a signal day like today.

So if you have an apple that gains 3% and hits a new high.

I calculated this has happened 15 times in the last 20 years and we only allow one signal per quarter.

What’s important is what happens next.

Then a day later, rising, 4/10ths of a percent, only four times out of 10 is it positive.

But you start looking at a week, a quarter of a month, a year later, up to 88%.

These are really good stats even for a stock that is mostly going up because there are long periods of time where it has this breakout and eventually goes up.

What is the risk here for this?

Because we’re looking at average gains of about 30% over the next year.

This is the V that we’ll see in a second here.

But what I want to show you is the Apple graph once again.

So we’re looking at five years here.

The risk is that it is a false breakout and that in the next few days we immediately go back and then go down a bit more.

The story continues

But this is the minimum, this is the Iris scenario, but it is a low probability.

That’s not what I think will happen.

And so for the market, Jared, the biggest takeaways when you know, a name like Apple starts working this way again.

Yes.

So we’ve been talking about the NVIDIA story, which is the story of artificial intelligence, for a long time.

Apple has kind of been left out and you can see that in the totals for the year to date.

Apple also pretty much breaks even to start the day all year long.

NVIDIA up 144%.

NVIDIA had all the action.

NVIDIA might be a little tired here.

So it would be fitting that another big title could carry the AI ​​banner for a while.

Uh Apple has always been the leader of the overall stock market for the last 10 years.

So it’s probably comfortable for a lot of people just to see him as the protagonist.

Uh, I see that as a big positive for the market.

All right, Jared Blu, point number two.

Yes, we are seeing market complacency.

So let me advance here.

We had Apple hit an all-time high, but recently stock volume has plummeted.

Let me give you some statistics.

So I look at uh spy volume spy is uh I is the S and P 500 spider ETF which is kind of a proxy for the overall market.

I recently saw the lowest volume of spying in years and sometimes what happens in the summer is good.

May June moves, you see a bit of a volume flag, but this is extreme.

I don’t want to say extreme, but I mean more than average.

So we’re seeing lower than average volume.

What this reminds me of is that a few summers ago in 2022, when did we have that big bear market?

Everyone was a little scared.

Uh, we’ve seen the stock for a while.

They managed to get back up.

And so there was kind of a sense in the market that everything was fine.

But I think, as you know, the old saying “cover in May or sorry, sell in May and walk away” should be changed to “cover in May and walk away”.

And I think that’s simply what we’re seeing here.

Finally, I just found my chart.

Here’s 2022, here’s that summer rally I’ve been looking at.

And I just think market participants are not as active this summer.

I think they put their stands on their hedges and went for a little 3rd, 3rd 1, Jerry.

We’ll get to that real quick.

This has to do with Bitcoin, Bitcoin and Ether experiencing their worst day in five weeks.

So I’m going to go to the charts real quick.

I showed the Bitcoin Board, the Ether board at the close today and you can see once I uploaded them here, just give me two seconds and here we go.

Uh You can see a lot of dark red on the screen.

Here is Bitcoin.

What I have emphasized thus far is that we are in a trading range.

So this might be the worst day we’ve had in the last few weeks, maybe in about a month.

But until we get out of this range to the upside or downside, that doesn’t mean much.

And take a look at Ether.

It’s a pretty similar graph.

Here it is.

Exchange rate just a little bigger very quickly.

That tells me something about the risk appetite heading towards the federal government, you know, good question.

Um, Bitcoin has been correlated in recent years.

You know, with risk, risk appetite comes closer to meeting.

I don’t know why you look at copper, it was kind of risk appetite hitting a new high.

Then it fell to a new low.

Take it, put it together, the commodity market with the cryptocurrency market, maybe the risk is a little tired right now and you kind of put it, uh, with my pre-market thesis the market could be on autopilot until the end of summer and this plays an important role.

So I don’t expect a big shakeup tomorrow at the Fed meeting, but maybe things will get a little riskier than, uh, fizzy.

Okay, we’ll wait and see, Jared.

Thank’s my friend.

Appreciate.

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