NEO has exploded since our Dec 13th post. It has hit our initial target level but only pulled back briefly before rallying in a similar fashion to ETH'. So why are these two coins crushing it when others are being crushed? Ok the 54,372% return was a joke, but in reality its a sign of market sentiment. I have mentioned for weeks now that when everyone is bullish we had better tighten it up. The post after posts of LONG 1010%, LONG 400%, Guaranteed winner of the day (day after day) was our sign that market sentiment was too high. All I could hear in the back of my head was those epic words, "RUN FOREST RUN"!

In the stock market we go through what they "coin" as "Market Rotation". Remember when retail was dead? Now its the hottest sector going, with stocks like Walmart, Kohls 4.50% and Target all breaking out and getting upgrades by the same banks and financial institutions that left them for dead 8 months ago. Rotations through "sectors" can often provide opportunities for the "Motley Fools" of investing to buy when others are selling and sell when the herd is stampeding.

From September to December "Fiat" coins like DASH' BTC' BCH' LTC' XMR' and ZEC' were on fire. From December till January it was the month of the speculation coins with TRX' hitting top 10 market cap! Really? Meanwhile smart contract coins like ETH' and NEO' sat dormant trading a little to the upside and it was as painful as watching paint dry while watching XRP' run 1200%. Now they started to move since December, which should have been our signal that smart money was rotating into this sector. I realized today that this may be the "YEAR of the SMART COIN". OR the flavor of the month anyway!

Like ETH' I shaved some NEO' off at the $126 level at the first sign of a pullback after hitting its ATH'. I almost added a trade today at $140 for $160 which is the 2.618 ext of wave 3 but with the market pulling back in general, and since buying near key levels is risky, I decided to looked for an area where I could get back in, and add a trade. Now this strategy applies to ETH' as well.

We are pulling back after just falling short of the $170 level or the 2.168 re-tracement of wave 4. Now WE CAN SURGE HIGHER so I want to be clear for all the NEO' Trolls that think this is their moment in the spot light and its to the moon and beyond. BUT after watching ETH' the past few days I am not counting on a complete pullback to the 0.618 level. I am looking for a reversal around the $134-$145 level. This is where having cash on the side is critical. I'm going to look to add a trade with a preliminary target of $250-$260. This will be a positional trade for the longer term. I had the same opportunity with ETH' recently and didn't pull the trigger. Live and learn!

After watching BCH' LTC' and Dash' make 400%+ runs I think its quite possible both ETH' and NEO' double from here. Just look at Ardor and EOS'!

Bottom line, the market appears to have an appetite for "smart contract" coins. I will be looking to trade a few others as well, but NEO' & ETH' are in my core portfolio and are definitely ones I want to add too (or get back the ones I sold) for the long term by trading.