Best Stocks, Crypto, and ETFs to Watch – Bitcoin, GameStop, Costco and SPY in Focus

Bitcoin got smashed over the weekend, dropping to a two-month low under 42,000 before bouncing above 49,000 ahead of the new trading week. The selloff follows ‘de-risking’ in other volatile assets, along with a flight to safety, as traders and investors speculate on fallout from the Omicron variant. The senior cryptocurrency failed a breakout above the April peak near 65,000 in November, with selling pressure since that time raising odds for a long-term double top reversal.

Speaking of de-risking, 2020 meme monster GameStop Inc. (GME) reports Q3 2021 earnings after Wednesday’s closing bell, with analysts looking for a loss of $0.52 per-share on $1.29 billion in revenue. If met, earnings-per-share (EPS) will mark a slight improvement compared to the $0.53 loss in the same quarter last year. The options market could go ballistic ahead of the report, with the most aggressive bearish bets of 2021, fueled by last week’s 23% decline in meme cousin AMC Entertainment Holdings Inc. (AMC).

Costco Wholesale Corp. (COST) has defied gravity through most of 2021, posting a 40% year-to-date return. However, big box rivals Walmart Inc. (WMT) and Target Corp. (TGT) have been under active distribution for weeks, raising odds for an aggressive sell-the-news reaction after COST reports fiscal Q1 2022 earnings on Thursday evening. Technical readings are deteriorating into the news, with weekly relative strength indicators nearing a potent sell signal.

SPDR S&P 500 Trust (SPY) reached short-term support at the 50-day moving average and breakout above the September high at 454 in Wednesday’s session. The fund bounced on Thursday but relinquished the majority of those gains on Friday, raising odds for a breakdown that could unfold as early as Sunday’s overnight session. That violation may signal additional downside into the 200-day moving average at 428, which has narrowly aligned with the October swing low.

Tesla Inc. (TSLA) had a bad week as well, dropping more than 6%, as investors dumped high growth stocks in favor of defensive plays. The selloff also marked a delayed reaction to a bearish Monday Tweet by CEO Elon Musk, in which he reiterated supply chain issues and warned “I will provide an updated product roadmap on next earnings call.” The decline has the potential to complete an Adam and Eve double top, with critical support just below the psychological 1,000 level.

Catch up on the latest price action with our new ETF performance breakdown.

Disclosure: the author held no positions in aforementioned securities at the time of publication.