Come on, feel the noize! Let’s take a look at Quiet RIOT (RIOT) (December 11, 2017)
RIOT
We are looking at Riot ( NASDAQ: RIOT ) here. You know what happened over the weekend, I think Cboe ( NASDAQ: CBOE ) is doing it today but the CME ( NASDAQ: CME ) started trading Bitcoin futures yesterday. And then the other one is doing it today. The bottom line is, Bitcoin futures are trading.
It was interesting, I have got to say it, these know-it-alls that I saw on TV, and I am not talking about any of the hosts or anything like that, were yipping about how, “Oh, they can’t wait for futures to start trading so they can short Bitcoin.” Well, aren’t you smarter than the rest of the market? Obviously, that didn’t happen since Bitcoin is up above 17 thousand. And let’s just say it was a lot lower than that over the weekend. I seriously doubt that any of those idiots actually shorted Bitcoin they just like to talk about it, but one of these days they will. Meanwhile, Bitcoin just continues to move higher. Make no mistake about it I mentioned it in this morning’s note, it is a bubble. It is a bubble but we don’t know whether it is a bubble that is going to pop at 17,500 or 170, 500; or it will fall down to $17.00. Nobody really knows.
There are other ways though, that you can look at this type of thing. I covered Riot ( NASDAQ: RIOT ) last week. It is one of the few kind of Bitcoin plays, other than GBTC ( OTCMKTS: GBTC ), which is a horrible ripoff. We were looking at this last week and I suggested buying something right around $15.00 and build it, and would still do it, as a really risky trade, because you just didn’t know how Bitcoin was going to trade. Also, these guys don’t invest in Bitcoin. But still, it is all things blockchained so everybody is happy.
My point was, this is resistance, this is support, and so you are trying to get a head start on a power move. You have a big power play here and now you are trying to get a head start on this. Then, Boom! Bitcoin does what it does weekend; this opens up and it still not at a new high here. The high here was $24.00, it still hasn’t quite hit that yet. This is how I would trade this, it is how I am trading it. I am looking at a breakout, kind of right around here, and we have got like $14.00 is what this moved up. That is 150 percent; we have got a $14.00 move. Let’s just go here, go another $14.00, $15.00, whatever; it is around $138.00.
The way I am trading this is, I am looking for $40.00. I am looking for this stock to basically double from here. It is just simply on technical analysis it is nothing deeper than that. I just showed you the methodology, you can either use it or not, it doesn’t matter. I think it is just important to have a method. Because otherwise you are just crossing your fingers and guessing and that has never really worked that well for me, I doubt it will for you either. That is my measured move on Riot ( NASDAQ: RIOT ). I would be long this stock right now. It is extended right now but I still think you could buy a little bit here, only a little bit, and then add to the position if this thing breaks out to a new high.
So look for this as a breakout, it is a solid breakout. You have got to wait for it but with the kind of activity this has had, seriously, think about it, how high is high? I don’t know. It is a heck of a lot higher today than it was yesterday by almost 50 percent. We have seen these types of stocks, a lot of times they are biotech stocks, they are trading like this, not that much volume, just not any at all. And then the stock breaks out, we see a marked increase in volume, half a million shares. And then finally, we get an even bigger jump in volume.
The way this stock is trading it is probably going to go a lot higher simply because everybody is looking at it and for lack of available options. So trade this at your own risk, it is a fast mover. I would look for any pullback to $20.00 to find some support. If it doesn’t, then I think you have got to hit the eject button.
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