If Bitcoin breaks down, just get out of Marathon or whatever else Bitcoin-related you own. If that happens, everything I said about Marathon rallying out of its consolidation is null and void. If this breaks to the downside, look out below as we could see a quick test of $21k in short order. There's a critical zone of support just over $25k, which is where we are right now. Things get a little trickier when we look at the coin itself, however.īitcoin is putting in a pretty ugly descending triangle, and the momentum indicators are unequivocally weak. Overall, I'm cautiously bullish on the next move. I still think the stock looks cheap relative to Bitcoin, but it's one more thing to watch.

That means investors are paying more today for Marathon's Bitcoin than they did in January. Marathon lost ~74% of its value relative to Bitcoin late last year, but has gained 75% (from a very low base) thus far in 2023. The bottom panel has Marathon's stock price relative to Bitcoin, which you can see goes through its own boom and bust cycles. That will exacerbate the next move, whether it's up or down, so buckle up if you have a position. That would be true just from the long consolidation, but this stock has about a quarter of the float short as well. Those are bull market behaviors, so if I'm leaning one way, it's cautiously bullish.īitcoin and Bitcoin-related stocks go through boom and bust cycles often, and I expect the move out of this consolidation range to be massive. While this chart is one of blatant indecision, I will say the PPO has reset to the centerline, and the 14-day RSI remains above 40, bouncing each time we see that number. The range is roughly $8.50 to $10.75, and we find the stock towards the bottom end of that range after Monday's action. The consolidation for Marathon is now almost two months old, and you can see it's been extremely tight. I think Marathon looks okay, but I'm avoiding taking a position until it breaks out of the range. The stock has been in a very tight range since mid-April, which - uncoincidentally - started when Bitcoin began consolidating. That's why we use stops, and it's a reminder that all we can do is try and put the odds in our favor. That setup eventually invalidated, and the stock ended up going a lot lower. The last time I visited Marathon, I placed a buy rating on the stock as there was a bullish setup identified in the chart. One such name is Marathon Digital ( NASDAQ: MARA), which is also up enormously this year, but has been stuck since mid-April. Of course, that sort of action takes a number of stocks with it, including those that mine Bitcoin for a living.

This, despite a pretty sizable consolidation that is underway since mid-April. VYM has lost 5.67% year to date, while an equally weighted portfolio of the stocks above would have lost 11.34%.Bitcoin ( BTC-USD) has been an absolute rocket ship this year. Through May 2023, an equally weighted portfolio of these 20 stocks mentioned above would have underperformed VYM by about 6%, largely due to the market volatility in the Banking sector. The goal of my high yield watchlist is to discover companies to add to my dividend growth portfolio in an attempt to consistently exceed the market return of the Vanguard High Dividend Yield ETF ( VYM). CompanyĪmerican Electric Power Company Inc ( AEP) The difference is 72 basis points or approximately 22%, suggesting the stock could be undervalued. An example below is American Electric Power Company, Inc.: the current yield is 3.99% while its five-year average is 3.27%. This simple idea suggests a company's yield should revert to the mean over time. I use dividend yield theory to determine if a stock is potentially undervalued or overvalued and consequently worthy of further research. Lastly, a company must be able to maintain a growing dividend for me to consider investing in it, so a trailing twelve-month payout ratio of less than 100% is used as the final filter. In addition to the 3% yield, a 10-year dividend growth rate of at least 5% is the next filter used in hopes to at least keep up with, if not outpace, inflation. While there could be some debate as to what qualifies a company as 'high yield,' 3% is sufficient for me. Next, the current annual dividend yield of the companies on this watchlist is at least 3%. Each of the companies on my watchlist is a large-cap stock, which equates to a market cap of at least $10 billion. The companies listed on this watchlist are stable, with a track record of paying and raising their dividends consistently. MicroStockHub High Yield Watchlist Criteria

Aer seeking alpha