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Over the past few weeks, I’ve presented both the bullish and bearish cases for the stock market. We continue to see steps made in the right direction, although full confirmation of a bottom from a technical standpoint has yet to be achieved.

This year’s volatility has managed to scare a fair share of market participants, and for good reasons. People like to talk about uncertainty being a problem for markets, but if you’ve been around long enough, you’ll know there’s always something to worry about.

I’ll be back at you Monday to recap what’s happening with the sectors inside the stock market, but today, I want to pivot over to another sector that’s growing in importance. It’s signaling that the market’s appetite for risk is only improving in this environment. 

As spring takes hold here in the Northern Hemisphere, are bears getting sleepy at the wrong time of year? Will it be a classic case of “sell in May and go away?” 

Looking at Crypto With a Level Head

I’m not sure what gets certain segments of the investment community more riled up - precious metals or crypto. The former has grounds to brag this year, no doubt, with gold still exhibiting the strongest uptrend in this entire market right now.

But when it comes to measuring risk appetite, crypto is as reliable as it gets. 

Bitcoin is back above 100,000, and is within spitting distance of new all-time highs. Do you think we could really be in a market where crypto is hitting new all-time highs but stocks are not?

Of course, anything is possible, so I won’t rule it out completely. But if that were to happen, it would represent a monumental paradigm shift.

Plus, we also saw Ethereum reawaken from its slumber, as it’s up around 30% this week already.

I think Ethereum’s awakening could lead to even greater ramifications for a potential “alt-season” in the crypto sector. And in the past, when we were in a crypto “alt-season,” we saw tremendous opportunities in the stock market too.

All I’m saying is to keep an open mind in this environment. The price has never been higher to ignore the price action.

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