Wednesday December 20th
SPX – We are seeing a very strong year end rally. Just when you think that it can’t keep going, it does. This is extremely right translated and the dip into the next dcl is definitely a buy. I just hope that we don’t spend all of January chopping sideways to consolidate these gains.
WTIC – Oil was rejected at the downtrend on Monday, but it did continue to push higher Tuesday. This is looking like day 4 and it should be able to break out if it has put an ICL in place.
In Tuesdays report I wrote:
THE USD really didn’t travel very much on Monday after that inside day Friday.
On Tuesday the USD was actually higher, but that didn’t hinder the precious metals sector.
Tuesdays report mentioned this about Gold:
This should only be day 3 for Gold and we are looking for a sign of strength sooner than later, since we are also watching to make sure that this doesn’t become L.T. It is oversold and has time to make progress. We’d use a stop under the recent dcl, since a break of that dcl would indicate a failure of this daily cycle.
GOLD pushed higher on day 4, despite the USD being green. I want to point something out here. GOLD and SILVER are NOT near the highs, but Miners are.
This was SILVER in Tuesdays report:
SILVER surged on Fed Wednesday and has paused. It has a series of higher lows, is on day 3 of a new daily cycle, and so far remains bullish. It remains oversold, so we’ll see how this plays out over time.
SILVER reversed at the 10 ema or held up there. Again I want to mention that Silver and Gold are not even close to the last daily cycle highs yet.
GDX to GOLD RATIO: The Miners are obviously leading the metals and that can be seen here with the Miners to Gold Ratio. This is always a good sign. Above I mentioned that Gold and Silver aren’t even close to their last daily cycle highs.
The GDX actually made a new intermediate cycle high while Gold and Silver are not even close to their highs, so Miners are looking good. That can be seen by HMY, NGD, EGO, KGC, etc.
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YESTERDAY I POINTED OUT THIS POSSIBLE ROUNDING BOTTOM IN THE GDX CHART:
GDX is starting to resemble a round bottom base now. It is showing some strength, because even on down days, it has not been able to dip lower and fill that gap from 3 days ago. It is also only day 3 here, so we need to allow time to show us what it can do.
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So even though the Metals (Gold and Silver) are not up near their highs, the Miners that I have been mentioning from the beginning and pointing out as strong leaders are. See EGO, HMY, NGD, KGC, etc.
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EGO has had a nice run from the ICL, so if it was in your basket of Miners that I mentioned buying and holding, it has run from under $8.5 to $13.5 and is back near those highs again.
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NGD is running back up at the highs too, but it has been a bit more choppy and difficult.
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HMY is also back at the recent highs and actually made another new high. HMY has been a real champ on this run too.
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YESTERDAY I POINTED THIS OUT WITH IAG:
Most miners were red or barely up, but IAG was up almost 5% and pushing on the resistance of the 200sma. This could be considered an area to buy the breakout or buy it if it churns & bounces around between the 50 & 200sma.
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I just wanted to point out that IAG was able to break out above that 200sma yesterday and this could start to run out of this consolidation/base.
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So we still have bullish set ups playing out everywhere, trading and even using the buy & hold approach at ICLs and dcls has paid off. Crypto area continues to look bullish too, so I will have a chart of Bitcoin below. Enjoy your Wednesday trading! 🙂
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~ALEX
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BITCOIN- I showed this bullish bitcoin set up in yesterdays report with the cycle count. I mentioned that I liked the set up, but hoped to see improvement in the lower indicators.
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This is BITCOIN live Wednesday morning. The indicators have improved and we are seeing bitcoin push higher this morning.
BITCOIN 4 hr chart- So this can run to the highs and then chop sideways to consolidate further, ot it could break out and try to make that run to 48,000. It is still consolidating as a bullish set up. Cryptostocks are making nice gains.
