Hey Nancy, It’s Only Friday- July 14th :)
It has been a bullish week of set ups in the General Markets, Oil, Crypto, and even Precious Metals. As we have seen lately, the General Markets responded very bullishly to the Jobless Claims report Thursday. They gapped open higher for the second day in a row, and that gave us a bullish resolve to what should have been a bearish set up. Lets take a look…
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NASDAQ – The wedge with divergence has broken to the upside, and tht now gives a new peak on day 12.
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So I would have to look at the NASDAQ this way and once the Markets hit the upper line, they’ll give in to that divergence and dip (Likely next week sometime). It may then simply correct the divergence and remain bullish by putting in a dcl or even an ICL, doing a ‘reset’.
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I had mentioned before that all you had to do to stay in the trade was place a rising stop under the 10 or 13 sma and allow it to take you out of the trade that way ( QQQ or TQQQ or SPY, SPXL, etc).
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Yesterday I used this chart to show that I was expecting a rally to the 200sma and then maybe a pause with a dcl.
WTIC – Oil made it to the 200sma, so now we break out or stall and then break out, but Oil started to act correctly and became a ‘long’ entry after the break of the 50sma.
THE XOP broke out 3 days ago and is stalling slightly. That happens all the time, so we expected that as a possibility. Oil stocks did well this week and should continue higher.
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USD: Read the chart, it started the next bullish move for The Precious Metals.
GOLD has paused under the 50sma. Again, this is something that we do expect, since it happens often, but Gold is Bullish. You will see next that Silver had a very different reaction…
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SILVER does not know how to hide its feelings about the USD failure 🙂 Silver broke the wedge or downtrend line 2 days ago when the USD failed, and it has been strong since then. Silver sliced right through the 50sma. Did you notice that Silver Stocks paused yesterday with Gold? I think that they may play ‘Catch Up’ to Silver soon.
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GDX stalled like Gold after breaking above the 50sma. I mentioned yesterday that this could happen by pointing to the break out in March. We saw a 3 day pause then with a Break through the 50sma, a Doji, and then a drop that actually went back under the 50sma. It landed on the 8 ema, so …
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Today we’ll see if The Miners want to fly on Friday(?) or repeat what happened in March? This was announced as a bullish set up, so the pause was an opportunity for those that didn’t buy yet to enter.
Some Miners paused and others began to play catch up. TRX was an example of that, so if you own a small basket of individual miners you could see some rising and others pausing, but this is overall a bullish set up.
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We’ll see what Friday brings our way, but the USD and Precious Metals set up has turned favorable going forward, I’ll discuss this further in the weekend report. have a great Friday and weekend!
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~ALEX
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These have been massive moves in the crypto sector:
HIVE– After the long consolidation at the 200sma, it has ripped higher, over 100%.
HUT -Another move of over 100% off of that 200sma. Many of the Crypto stock have done this and we’ve made great gains here.
MARA – If you look at the 8 ema ( or 9 sma), I mentioned that this is one way that you can play a ‘running correction’. You allow it to take you out of the trade rather than sell, however a gap down & sharp sell off can take the entire last days gains away before you know it. You still would have great gains though.
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BITCOIN broke out yesterday, causing that Thursday surge in Crypto stocks, but…
BITCOIN has dipped back under the breakout overnight. Was that just a ‘news driven’ false break out that will give us a dip as we near day 30? Or will this just pause & then continue higher for the next couple of weeks (giving us the 60 day cycle). I have expected a run to the $35,000-$36,000 area the whole time, so either way I still am going to expect another run higher.
Nice Stock set ups:
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PEP delivered earnings and is breaking out above the 50sma. Sespite inflation, they showed that revenue and adjusted earnings per share soared by double-digit percentages.
PTRA – I like this base (similar to the ‘GOSS” base that I have pointed out. I am keeping an eye on this one daily though, because this one is EV and could run as the sector heats up. This should easily double once it gets going.
PTRA -The close up would look like this and the RSI is bullish.
WPRT – Westport Fuel Systems has started to percolate too. This small move was $6.5 to $9 and it looks ready to continue higher too. This is a buy.
CODX popped 10% and has a nice base. It has plenty of upside potential, volume is swelling, and that RSI is already very strong.
I traded GCT in May to June after it did a massive break higher above a downtrend. It climbed the 8 ema as a trade but then became very choppy. This current choppy set up is Bullish & turned higher yesterday. It is choppy and may be difficult, but I thought that I’d point it out as a possible small position buy & hold and see where it goes. It may run.
