The crypto coins made a strong move early in the morning so my focus immediately turned to the crypto penny names. Sure enough a few of them were on my “Up Gapper” screener showing active pre-market trading. Right at the open those names dropped quickly but within a few minutes the stocks rallied back strong. RIOT and MARA were the two names of interest early on and PIXY came into the light also.
I just missed out on the RIOT pop but the room did manage to capture a nice winner in MARA. So we now know the dependency on these smaller crypto names. When BTC or Bitcoin moves nicely, they will play as the leading indicator for some of these names. General knowledge I assume for the seasoned trader, but I think the importance is the velocity of the move in BTC. It was a sharp move today to get above the $8,000 mark. We have seen BTC rise and fall recently and the crypto names remained fairly flat.
The leading indicator I will be looking for is velocity in the move for crypto coins. MARA has strong ties to BTC since they mine the coin. So it only benefits them when BTC rallies. Keep MARA, PIXY, RIOT and even LFIN (Once it gets off halt) on your radar when you see or hear about BTC moving sharply. These names provide easy short term opportunities.