Bitcoin's Rebound Could Send These Coins Even Higher

Here's Why The Market Could Be Lower In A Month From Now... [View Online]()|[Unsubscribe]( [Street Authority Daily] -[]Recommended Link Sponsored Content [Bitcoin's Rebound Could Send These Coins Even Higher]( After battling a few negative tweets and China's latest crackdown, Bitcoin has started to rebound and has now breached the $40k level. As Bitcoin goes up, so does the rest of the crypto market. But with Bitcoin's volatility, there are more lucrative plays in the crypto market right now - ones that have beaten Bitcoin by a margin of 30 to 1… even 100 to 1. [Click here to get your free guide. Most investors don't know this, but you should... Get the crucial details here.]( June 23, 2021 Here's Why The Market Could Be Lower In A Month From Now... By Amber Hestla [Amber Hestla] From everything we're currently seeing, I believe the potential trend reversal I've been pointing out for the past couple of weeks is beginning to take shape. Yes, we could see a brief rally... but the S&P 500 should be lower a month from now than it is today. Here's how I came to this conclusion... Once again, I want to start with a look at the seasonal trend in SPDR S&P 500 ETF (NYSE: SPY). Now, it's worth reiterating what I've been saying for the past couple of weeks when we talk about seasonals. While seasonals should not be the sole reason to take action in the market, it's a very useful input to consider alongside other indicators. -[]Recommended Link [Don't Get Locked Out]( It's not often that you get a chance to look over the shoulder of a self-made millionaire and have him walk you through trades that could help you make up to 18x your money. And for a fraction of the cost that most people paid to see the same thing. But last week, that's exactly what we offered 50 of our readers. The spots are nearly full-and the race is on. Because we're closing out the offer in 24 hours whether they're full or not. [Click here to get the details before it's too late.]( So far this month, tracking SPY's seasonal trend (blue) has been working fairly well, with the ETF's current price action (black bars) closely following the projected movement. As you can see in the chart, SPY's seasonals remain weak into the end of the month. And the weak seasonal outlook for the next few weeks combines with fears of inflation and a potential earlier-than-expected increase in interest rates. The Fed's Role In The Market After last week's Federal Reserve meeting, the Fed updated its economic projections. In that report is the Fed's "dot plot," which is widely followed by investors, analysts, CEOs, politicians, and pretty much anyone hoping for a sneak peak of what interest rates will look like in the coming quarters. Essentially, the "dot plot" shows projections for the federal funds rate, which largely determines the interest rates consumers and institutions will pay. Each yellow dot on the chart represents where one of the Fed policymakers believe rates will be at the end of each year shown. The most recent dot plot is shown below. Source: [Bloomberg]( The median value of the dots - the midpoint of the Fed's projections - is shown as a green line. The lighter colored line shows the rate expected based on prices of futures on fed funds. This latest chart shows significant changes from the March dot plot. Back then, just four of the 18 Fed officials expected there to be a rate increase in 2022. But now that number has increased to seven. Looking forward to 2023, 13 Fed officials expect at least one rate increase, up from seven officials just three months ago. A majority (11) expect two rate hikes by the end of 2023. Higher rates are a response to higher inflation. The Fed's projections now show expected inflation of 3.4% this year, a full point higher than the March forecast. The 2022 forecast rose to 2.1% from 2%, and the 2023 estimate was raised to 2.2% from 2.1%. The Fed also expects faster economic growth. GDP should grow 7% this year, up from a prior projection of 6.5%. But projections for next year were unchanged at 3.3%, indicating the Fed expects long-term challenges for the economy. While the shifts in the Fed's outlook were significant, the market expects even higher rates. That could be bearish for stocks because investors could be tempted to sell stocks if bonds offer reasonable returns. This is a long-term concern for the market that could be driving the short-term selloff we saw last week. How This Affects The Way We Trade That selling leaves the chart of SPY in a precarious state. Let's take a look at my next chart, which is also showing weakness. The first thing I want you to look at on this chart is the months-long trading range (dashed lines) I've highlighted in the upper right section of the chart. SPY had a small breakout two weeks ago, closing above the upper dashed line, which would normally be a bullish sign. However, at the beginning of last week, I noted that my indicators were all suggesting that this was actually a "false breakout," or when a breakout is followed by a rapid reversal. That's exactly what we got, with SPY dropping 2.2% by the week's close. My Income Trader Volatility (ITV) indicator, shown in the bottom panel of the chart below, is now near a "sell" signal. ITV (red) is similar to VIX in that it rises as prices fall. So seeing ITV trending up, like it is now, is a sign of growing weakness. Its current position, just below its moving average (blue), points to potential selling in stocks. Our last chart this week shows my Profit Amplifier Momentum (PAM), which may be pointing to even more declines. PAM is designed as a short-term indicator. The red bars are bearish, and the green bars are bullish. Currently, PAM is declining from a peak, which is another potential indicator of weakness. Closing Thoughts Despite evidence that a downturn is on the horizon, I don't want you to panic. There are plenty of ways to profit and/or protect capital in a downtrend - you just have to be willing to look at alternatives to simply "buying stocks." And luckily, you're in a great place to find those alternatives. [Profitable Trading](, [StreetAuthority](, and [Investing Daily]( all have a number of experts and strategies to help you navigate that path. One of my personal favorites is a strategy that lets us respond quickly to changes in the market... Where most traders will take the macro-factors I outlined above and arrive at a trade target, many will simply buy the stock and hope for the best. But over at Maximum Income, we can not only own the stock - but generate immediate income... This strategy works well in times like this. It can be used to take charge of your portfolio and quickly respond to what the market throws at us. We not only earn income right away, but we also have the chance to repeat similar trades again and again, boosting our income even further... This strategy works like an "insurance policy" on your portfolio. It's one of the most effective ways for you to hedge risk - while making a substantial amount of income in the process. [Go here if you'd like to learn more about how this works.]( -[]Recommended Link [A Picket Fence Nightmare...]( [A Picket Fence Nightmare...]( This $118 trillion economic force could turn thousands of Americans into millionaires… while destroying the retirement dreams of millions more. Your decision today could decide which side of the picket fence YOU end up on. [Get the full details here >>]( To ensure that you receive these emails, [please add us to your address book.]( Disclosure: StreetAuthority doesn't own shares of any securities mentioned in this article. 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