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How Does The Coinbase Direct Listing Affect The Tech Sector?

Published 04/14/2021, 12:23 AM
Updated 07/09/2023, 06:31 AM
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COIN
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QQQ Daily Chart

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

Coinbase is currently the most popular exchange for buying crypto and has attracted a large amount of popularity and hype before it goes public 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 (NASDAQ:COIN), which will be listed on the NASDAQ exchange with the ticker COIN, has a deeper meaning than any other publicly traded company.

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

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

There are also companies that are willing to accept payment in Bitcoin and other cryptocurrencies 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.

ETF Summary

S&P 500 (SPY) New Highs.

Russell 2000 (IWM219.39 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.

Volatility Index (VXX) Needs to find support.

Junk Bonds (JNK) support 108.59 the 50-DMA 109.08 resistance.

(LQD) (iShares iBoxx $ Investment Grade Corporate Bond ETF) 131.53 next resistance area the 50-DMA.

IYR (Real Estate) Staying over the 10-DMA at 93.76 and trending higher.

XLU (Utilities)  64.19 support. Needs to hold over 65.30.

GLD (Gold Trust) Gap to fill at 164.14.

SLV (Silver) Doji day. 23.78 resistance.

VBK (Small Cap Growth ETF) 282.47 resistance area from the 50-DMA.

UGA (US Gas Fund) 31 support area. 32.66 resistance.

TLT (iShares 20+ Year Treasuries) 134.97 support. 138.66 resistance to clear.

USD (Dollar) 92.29 resistance area. 91.58 the 50-DMA

MJ (Alternative Harvest ETF) Would good if this could get back over 21.55.

WEAT (Teucrium Wheat Fund) Doji day right on the 50-DMA at 6.17

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