Summing Up The Week

Despite a quick scare by Janet Yellen early in the week, the markets closed the week higher once more, setting new all-time highs along the way. Even genuinely negative economic news on Friday wasn’t enough to keep the markets down.

Let’s look at what moved the markets this week…

Market News

The Fed uses Yellen as a test balloon, suggests higher rates

The first trading day of May went swimmingly. On the second day, however, the markets sold off precipitously after Treasury Secretary Janet Yellen conceded that interest rates may need to rise to prevent the economy from overheating, reported CNBC.

“It may be that interest rates will have to rise somewhat to make sure that our economy doesn’t overheat,” Yellen said at an economic seminar. “Even though the additional spending is relatively small relative to the size of the economy, it could cause some very modest increases in interest rates.”

Even though the Federal Reserve Bank and the Federal Government are supposed to be independent, Yellen used to be the Chair of the Fed. Having her suggest higher rates acts as a good test balloon since  she has the credibility of experience but no longer has the actual power to raise or lower interest rates.

Had current Fed Chair Jerome Powell said anything about raising rates, the credibility of the Fed would have been completely undermined as he has been quoted as saying the Fed “isn’t even thinking about thinking about raising rates.”

Federal judge overturns national eviction ban

On Wednesday, Federal Judge Dabney Friedrich struck down the Centers for Disease Control’s (CDC) national eviction moratorium, reported CNBC. It’s estimated that potentially 2 million people have been living in residences rent-free for more than a year and may get evicted. Additionally, 1 in 5 renters are behind on their payments.

While it is true that these Americans are in rough shape, an argument can be made for the landlords, many of whom are single- or double-property owners who have received no assistance paying their mortgages for the properties where renters are living rent-free.

Both situations are untenable.

Housing advocated called on the Department of Justice to quickly appeal the ruling and the Biden administration to continue to enforce the moratorium. “We also recognize, of course, the importance of the eviction moratorium for Americans who’ve fallen behind on rent during the pandemic,” said White House spokesperson Jen Psaki. “A recent study estimates that there were 1.55 million fewer evictions filed during 2020 than would be expected due to the eviction moratorium, so it’s clearly had a huge benefit.”

Jobless claims at 498K, lowest since pre-covid

On Thursday, the Labor Department reported initial claims for unemployment benefits fell to 498,000 in the past week, less than the 527,000 Dow Jones estimate, reported CNBC.

While the pandemic has certainly desensitized many Americans into feeling like a half-million new unemployed is a good thing, comparatively to the rest of the pandemic reports, this week’s jobless claims number is good.

“While forecasts put a return to pre-pandemic employment two eyars off, job gains are cutting financial stress and poverty by leaps and bounds now,” said Robert Frick, corporate economist with Navy Federal Credit Union. “This strong trend should continue at least through the summer.”

Expected April hiring boom doesn’t happen, markets ignore

On Friday, the April hiring report was a letdown with nonfarm payrolls increasing by 226,000 versus the expected 1,000,000 new hires, reported CNBC. Plus, the unemployment rate rose to 6.1%.

While that’s all terrible news for the economy, the markets roared higher.


Investors assume that the current stimulus plans and easing financial restraints will continue, meaning additional consumer spending and more assistance from the government to push stocks even higher. Crazy, I know.

Next Week’s Gameplan

Almost no sector or industry can be considered “cheap” right now. The stock market is at all-time highs, cryptocurrencies are roaring, and the housing market is exploding. 

What’s an investor to do?

Remain cautious. As Warren Buffett says, “there are no ‘called strikes’ in investing.” This means if there’s nothing worth buying, don’t buy anything.

Also, if you don’t already have dry powder (i.e. cash on the sidelines), consider watching my video below… 

This Week in Play

Stay tuned for this week’s episodes of my two portfolios Investments in Play and Speculation in Play coming online later this weekend! 

Crytpo Corner

Important Disclaimer

Get Irked contributors are not professional advisers. Discussions of positions should not be taken as recommendations to buy or sell. All investments carry risk and all readers must accept their own risks. Get Irked recommends anyone interested in investing or trading any asset class consult with a professional investment adviser to determine if an investment idea is suitable to them and their investment goals.

Bitcoin's Road to Nowhere - Get Irked

Click chart for enlarged version

Bitcoin Price (in USD)


Weekly Change

Bitcoin Price Action

The Moneymaker is holding…

Bitcoin tested The Moneymaker trendline three times in the past week, and this trendline held once again. In fact, Bitcoin bears have been unable to push through this trendline and keep Bitcoin down for more than four days since January. 

Can its support continue to hold?

The Bullish Case

Bulls think Bitcoin’s resting at these levels before it breaks out to new all-time highs, once again referencing institutions but also increased retail interest in the entire crypto space thanks to pro-crypto celebrities like Tesla (TSLA) CEO Elon Musk tweeting about crypto of all kinds.

The Bearish Case

Bears think the interest and speculation in the crypto space has risen to a fever pitch, particularly thanks to the outrageous run in Dogecoin, an altcoin originally and intentionally created as a joke to prove that anyone can create a token. These bears believe the entire crypto space is in for a massive selloff, potentially worse than the one seen in 2017.

Bitcoin Gameplan

Current Allocation: 3.478% (-0.256% since last week)
Current Per-Coin Price: $55,431.08 (Unchanged since last week)
Current Profit/Loss Status: +3.995% (+0.879% since last week)

Keepin’ it steady…

With relatively little movement in Bitcoin over the past week, I’ve been in no hurry to add to or sell any of my position, leaving it the same as last week (the change in allocation is due to additional portfolio changes made to trades in other cryptos). From here, it’s a holding pattern, or should I say “HODLing pattern” (awful pun) until we see where crypto heads next.

Bitcoin Buying Targets

Using Moving Averages and supporting trend-lines as guides, here is my plan for my next ten (10) buying quantities and prices:

0.470% @ $48,253
0.470% @ $37,460
0.470% @ $33,235
1.188% @ $27,926
2.384% @ $22,085
4.383% @ $15,985
7.326% @ $11,124
6.732% @ $9,144
5.372% @ $7,327
16.004% @ $4,926

No price target is unrealistic in the cryptocurrency space – Bullish or Bearish.

While traditional stock market investors and traders may think the price targets in the cryptocurrency space are outlandish due to the incredible spread (sometimes a drop of near -90% or a gain of up to +1000% or more), Bitcoin has demonstrated that, more than any speculative asset, its price is capable of doing anything.

Here are some of Bitcoin’s price movements over the past couple of years:

  • In 2017, Bitcoin rose +2,707% from its January low of $734.64 to make an all-time high of $19,891.99 in December.
  • Then, Bitcoin crashed nearly -85% from its high to a December 2018 low of $3128.89.
    In the first half of 2019, Bitcoin rallied +343% to $13,868.44.
  • From June 2019, Bitcoin crashed -54% to a low of $6430.00 in December 2019.
  • From December 2019’s low, Bitcoin rallied +64% to $10,522.51 in February 2020.
  • In March 2020, Bitcoin crashed nearly -63% to a low of $3858.00, mostly in 24 hours.
  • Then, Bitcoin rallied +988% to a new all-time high of $41,986.37 in January 2021.
  • Later in January, Bitcoin dropped -32% to a low of $28,732.00.
  • In February 2021, Bitcoin rallied +103% to a new all-time high of $58,367.00.
  • Later in February, Bitcoin dropped -26% to a low of $43,016.00.
  • In March 2021, Bitcoin rallied +44% to a new all-time high of $61,788.45.
  • Later in March, Bitcoin dropped -19% to a low of $50,305.00.
  • In April 2021, Bitcoin rallied +29% to a new all-time high of $64,896.75.
  • Later in April, Bitcoin dropped -28% to a low of $47,044.01.

Where will Bitcoin go from here? Truly, anything is possible…

What if Bitcoin’s headed to zero?

The only reason I speculate in the cryptocurrency space is I truly believe Bitcoin isn’t headed to zero.

I am prepared for that possibility, however, by knowing I could potentially lose all of the capital I’ve allocated to this speculative investment. Professional advisers recommend speculating with no more than 5% of an investor’s overall assets. Personally, I’ve allocated less than that to speculating in crypto.

I feel that anyone who doesn’t fully believe in the long-term viability of cryptocurrency would be better served not speculating in the space.

On a good day, this asset class isn’t suitable for those with weak stomachs. On volatile days, the sector can induce nausea in the most iron-willed speculator. If a speculator isn’t confident in the space, the moves will cause mistakes to be made.

DISCLAIMER: Anyone considering speculating in the crypto sector should only do so with funds they are prepared to lose completely. All interested individuals should consult a professional financial adviser to see if speculation is right for them. No Get Irked contributor is a financial professional of any kind.

Suicide Hotline – You Are Not Alone

Studies show that economic recessions cause an increase in suicide, especially when combined with thoughts of loneliness and anxiety.

If you or someone you know are having thoughts of suicide or self-harm, please contact the National Suicide Prevention Lifeline by visiting or calling 1-800-273-TALK.

The hotline is open 24 hours a day, 7 days a week.