One group of stocks that really stood out was Digital Payments.
These stocks are on fire, offering favorable setups left and right these days, to the point I would be ashamed not to share some with you.
Before diving into some individual names, here's the Amplify Digital Payments ETF $IPAY:
IPAY just completed a textbook rounding bottom formation and is embarking on a new uptrend.
Aside from bellwethers like PayPal or Block $SQ (which I wrote about last week), there are three stocks that catch my attention within this ETF.
Let’s take a look at them.
First up is Shift4 Payments $FOUR:
The stock has been carving out a monster base for the past four years.
Price is pressing against the upper bounds of this range as buyers work on absorbing all the overhead supply at this resistance zone.
If and when they do, the path of least resistance will be higher.
Next, we have Affirm Holdings $AFRM:
AFRM has expanded into the crypto world by partnering with platforms that support digital payments.
The stock is resolving higher from a massive reversal formation.
I think this one keeps climbing the right-hand side of this base back toward its former all-time highs.
Last but not least, we have Coinbase Global $COIN:
COIN is approaching a shelf of old highs from the prior-cycle.
While it still has some work to do before breaking out above this resistance zone, it is setting up nicely and offering an asymmetric risk vs reward opportunity.
This group is looking so good right now I could continue with more charts.
SoFi Technologies $SOFI, Toast Inc $TOST, Visa $V… they all look great.
In my mind, this price action speaks to two major themes.
One is broadening participation. A growing list of stocks and industry groups are joining the bull market party. Digital Payments are just one of them.
The second, and arguably more important, takeaway has to do with the kind of stocks that are working.
They are speculative groups. Beaten-down areas. Former laggards.
Just look at crypto lately.
The fact that these risk-on corners of the market are breaking out and kicking off fresh reversals is breathing new life into the broader market.
The animal spirits are alive and well.
On Friday, JC and Louis went live to share a helpful video on how to buy crypto for those new to it. Check this out.
