Here’s the down low on Riot Blockchain ($RIOT) – October 18, 2021

by DAN RIOT HUT BOOT 
I want to look at Riot Blockchain ( NASDAQ: RIOT ), here’s why; I put this on our Active Trade List today. I bought this at 29.70, so a little bit lower than it is now, with a stop at 27.60. So I just thought I would explain the trade.

First of all, this black line here is my extrapolation of the 50-day moving average and the way it is trading. The 50-day moving average is still trending this way. If the stock starts breaking above the 50 then it will turn higher. But for now, the price is trapped below the 50-day moving average, that’s important.

To me, I will virtually never want to buy a stock that is below the 50-day moving average. And to be perfectly honest, buying a stock that is below the 200-day moving average is kind of blasphemy. You just don’t want to do it, because guys like Paul Tudor Jones will never do it. And so if Paul Tudor Jones says, “I never buy a stock below the 200-day moving average. I don’t even look at them.” Well, that’s good enough for me

The main reason is, that when you are doing this when you are buying a stock underneath these key moving averages, guys, this is where supply is. People are selling at the 200-day moving average or the 50-day moving average, which is why the stock is BELOW, which is why the stock is below these key moving averages.

I made an exception this time because of the way Riot ( NASDAQ: RIOT ) is trading. It is holding above $25.00, so it is holding that level. And also, we see what is kind of happening in Bitcoin and all that jazz. So it just seems to me like, after the run that this thing has had, it ran up almost 2,000 percent, since that time it has essentially corrected for 8-months. It looks to me like this stock is ready to start moving higher again.

So what I did was, I took a defined risk on the trade. Again, I bought early so I bought small. The stop is right down here below today’s intraday low, 27.72. Our stop is 27.60, we could set it at 27.71, I’d give it a little more room than that. The idea is, I want to be in this stock unless the stock does this, if the stock pulls back I don’t want to be long the stock. And even if the stock breaks out I still have to be aware that we could get a pullback, typically you do. You get a breakout and then a pullback.

But what I don’t want to see happen is, I don’t want to see the stock fall completely below this level here. So that is why I will keep this stop here. If I am right, I am going to make good money. If I am wrong, I will lose a defined amount of money, and that definition is fine with me. Anyway, that is how I am trading Riot ( NASDAQ: RIOT ).

We’ve also got positions in Hut 8 ( NASDAQ: HUT ), which are doing EXTREMELY well. We’ve also got positions in Boot Barn ( NYSE: BOOT ), but that’s nothing to talk about, frankly because that’s boring. All it’s doing is just making us money.

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