Based on resilient price action and cumulative strong earnings reports, we are purchasing another 2.5% stake in Okta, Inc (OTKA). Increasing our total position to 5% of the equity portfolio. We will continue to build a position in this name. From a technical perspective, we look for tradable stocks that are building a strong base, forming a cup and handle pattern. Furthermore, in my experience, stocks and cryptocurrencies breaking above their 21-day moving averages on volume can run.
As exhibited here on Yahoo Finance, the OKTA price line is holding steady while the overall market is down. Price is beginning to move above the purple 21-day moving average line. This indicator is useful for intermediate-term trades.
If you prefer, trade with a tight stop. However, we see a classic double bottom pattern and volume spike as shown by the huge green candle. Buyers have come into the stock. We see an asymmetric trade here with limited downside back to the 95 level.
Market Update
We are patiently awaiting a wave of new macro data this week – with a particular focus on Wednesday’s CPI inflation data and Friday’s non-farm payrolls.
Last week we saw big moves in the labor market, leading to modest declines in rates and upward moves in rate-sensitive technology stocks.
Here are several key points from CNBC:
Payroll data will be out this Friday, where we will likely see a deceleration in new jobs added. The labor market is clearly losing steam. Layoffs are now at a 16-month high and jobless claims are the highest since December 2021.
Covid cases are once again on the rise here and abroad, with China implementing more stringent measures (we wish everyone a safe and healthy summer).
These factors are bullish for technology stocks as the Fed faces an economy likely already in a mild recession.
Watch List
We are adding Avalanche (AVAX) to our watch list. Avalanche is a layer one blockchain solution, launched by Ava Labs, founded by Cornell University professor Emin Gün Sirer, and Cornell University computer science PhD’s Kevin Sekniqi and Maofan “Ted” Yin. Gün Sirer is a veteran in cryptographic research.
The Avalanche network consists of three individual blockchains: the X-Chain, C-Chain and P-Chain. Each chain has a distinct purpose, which is radically different from the approach Bitcoin and Ethereum use, namely having all nodes validate all transactions. Avalanche blockchains even use different consensus mechanisms based on their use cases.
Avalanche attempts to solve the “blockchain trilemma,” which posits that blockchains cannot achieve a sufficient degree of decentralization at scale (Source: CoinMarketCap).
Crypto Portfolio
| Ticker | Initial Weight | Price | Price at Rec | Performance | Rating |
| ETH | 15.0% | 1,141.80 | 3,444.22 | -66.85% | BUY A QUARTER |
| ENS | 2.50% | 9.02 | 10.22 | -11.74% | BUY A HALF |
| MATIC | 1.25% | 0.58 | 0.678 | -14.00% | BUY A QUARTER |
| APE | — | 4.58 | — | — | WATCH |
| SOL | — | 35.36 | — | — | WATCH |
| HNT | — | 9.03 | — | — | WATCH |
| STEPN | — | 0.8786 | — | — | WATCH |
| AVAX | — | 18.33 | — | — | WATCH |
Equity Portfolio
| Ticker | Initial Weight | Price | Price at Rec | Performance | Rating |
| Proshares Strategy Bitcoin ETF (BITO) | 2.50% | 12.66 | 25.93 | -51.18% | BUY A QUARTER |
| Arista Networks (ANET) | 2.50% | 101.7 | 105.00 | -3.14% | BUY A QUARTER |
| Nvidia (NVDA) | 2.50% | 151.52 | 188.20 | -19.49% | BUY A QUARTER |
| Okta Inc. (OKTA) | 2.50% | 100.38 | 95 | 5.66% | BUY A HALF |
| Proshares Short Bitcoin ETF (BITI) | — | 39.7 | — | — | WATCH |
| Concord Acquisition (CND) | — | 9.97 | — | — | WATCH |
| CrowdStrike (CRWD) | — | 185.37 | — | — | WATCH |
| Galaxy Digital (GLXY.TO) | — | 5.34(CAD) | — | — | WATCH |
| Unity (U) | — | 41.34 | — | — | WATCH |