How Does Coinbase Affect Other Technology Stocks?

The Nasdaq 100 (QQQ) has made new all-time highs on the heels of Coinbase direct listing on April 14th. 

Coinbase is currently the most popular exchange for buying crypto and has attracted a large amount of popularity and hype before it releases as market analysts throw out wildly different estimates ranging from $20 to $100 + billion. 

When it comes to new stock releases, from our perspective, the best plan is to wait for the dust to settle. 

Without any prior trading history, highly speculative estimates can be fun to think about, but often do not have a good track record of helping position size for the unknown volatility that often takes place with a new listing. 

However, Coinbase, which will be listed on the Nasdaq exchange as (COIN) has a deeper meaning than any other publicly traded company.

It brings yet another level of legitimacy to the crypto currency space which has gained a huge amount of momentum over the past 6 months. 

Additionally, many banks have been working on creating infrastructure for crypto currencies along with companies investing directly into Bitcoin.

There are also companies that are willing to accept payment in bitcoin and other crypto currencies for goods and services.  

On top of several traditional banks that have already been working on creating infrastructure and services for cryptocurrencies, there are also banks emerging with the sole purpose of providing cryptocurrency and fintech services.  

With that said, COIN could give another boost to the tech sector as it will be one of the first publicly traded companies that helps people buy cryptocurrencies.

Its further adoption paves the way for large and new tech companies to join the tech space as more demand for cybersecurity, computer chips, crypto banking, and transaction software need to be created. 

Stock Market ETFs Summary:

S&P 500 (SPY) New Highs. 

Russell 2000 (IWM) 219.39 support.Resistance 226.69

Dow (DIA) 333.43 support.

Nasdaq (QQQ) New highs.

KRE (Regional Banks) Needs to hold over 65.26.

SMH (Semiconductors) Resistance 258.59.

IYT (Transportation) Closed over the 10-DMA at 260.67.

IBB (Biotechnology) 145.61 support.

XRT (Retail) Needs to clear 93 then 96.27.

Twitter: @marketminute

The author may have a position in the mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.

The post How Does Coinbase Affect Other Technology Stocks? appeared first on See It Market.

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