Tuesday March 5th
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The SPX is on day 39 and it made another new high, so we are really very late in the daily cycle here, but this is very bullish and quite right translated.
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WTIC – Oil remains choppy, and…
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In the WTIC WEEKLY CHART – I pointed out that we do have another major hurdle, so Oil may be chopping and building energy to try to take this out this week.
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THE USD looks like it broke down & then back tested the channel. It is also supported by the 200sma so far. It should be VERY OBVIOUS to everyone that the USD did not drop hardly at all on Friday or Monday, but Gold has skyrocketed.
In the weekend report, I mentioned that the USD hit my target of 105 and stalled, and The weekend chart may be showing us the resistance.
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Also, USD was down 6 cents for the week, and Gold was up $46 last week!
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GOLD was up $40 Friday and another $30+ on Monday. I know that we have not taken out the December ‘spike high’ yet, but it is safe to say that Gold is breaking out to all time highs. Let me give you another view…
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GOLD formed a ceiling with the prior highs and the Spike highs broke out and gave it up all in one day. That becomes a false break out, but now we are above that ceiling and breaking out from this multiyear pattern. This chart was captured in the morning, so Gold is now also higher than you see here.
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GOLD – Back to the daily chart. This looks awesome with only 1 small, tiny problem.
The daily cycles have been shorter than the normal 33 plus day. The dcl has been coming in around day 25 or so lately. That is a TINY problem, but it means that if that continues, we might be 1/2 way through this first daily cycle, and the first daily cycle of the last Intermediate Cycle actually peaked on day 15. We are starting a new move out of an ICL though, so it is also possible that they start to stretch with extra bullish exuberance following a breakout.
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SILVER is also on day 12 and it is starting to surge now too. It sliced right through the 200sma. I had already pointed out that Silver made a higher high when it tagged the 200sma and the MACD was curling up, so the signs started to help us to prepare for a break higher. Now Silver has obviously made a higher high and that should catch other traders eyes. The good news is that many Silver stocks were still sitting down close to the lows this morning too.
SILVER WEEKLY – Silver has been ‘coiling’ or ‘churning’ sideways for years, and when it breaks out there should be a lot of energy built up for a run higher. We are at THE LOWS of the pattern, and the stochastics is now OVERSOLD on the weekly charts.
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GDX – I have been pointing out this bullish wedge with capitulation and a flattened MACD, and now we see a very strong move higher. Those moving averages won’t hold this back if Gold continues higher and we have buyers flooding in, along with shorts being forced to cover.
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This next rally, if Gold breaks to new all-time highs and continues to $3,000 & $4,000, etc, could become the best rally here. So…
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I wanted to take a look at recent rallies using a weekly chart. These are not even all of the best GDX rallies, they are the rallies over the past few years. You can see the potential if we just match some of these, and the potential is good, so buying a basket of Miners and riding it out for a period of time could really pay off (it has already). Yes, it may be choppy, we see that with some of these, but we are still sitting at the lows in the big picture.
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AAGFF – Many of the smaller companies (explorers and juniors) rallied and this is one of my old favorites.
GFI I grabbed this chart midday to show that it was only up 3% and had great potential. In fact…
GFI WEEKLY – It closed up over 4% and take a look at the weekly chart. This often doubles and then some on the strong rallies, and if Gold breaks to new all time highs, we could see our strongest or possibly the most sustained rally / trend higher. So even from here we could see $14 to $20plus, even $30 plus if the bull market trends for a while.
HMY is always my favorite, so I had this to show you that it was breaking out above the 50sma AFTER the earnings report. It was also oversold…
HMY jumped 14% on Monday and is already at new highs! HMY stayed strong and traded at the highs of its range, just like Gold.
KGC was breaking above the 50sma yesterday, and I posted this because it was only up 2.7%. These can rally for a while and I definitely expect this to return to the highs, and then break out. This was oversold and had a MACD curl too.
NGD has its earnings behind it now too. It…
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NGD has been up 5%, 4%, 8%, and then another 5%. This may seem slow, but add it up and NGD is up 22% and it is leaving people behind. THAT SAID- Do you feel like we have all missed the move? I don’t own NGD yet either, but I may want to get in because…
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Do you feel like we have all missed the move? I don’t own NGD yet either, but I may want to get in because…
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NGD WEEKLY: Don’t lose sight of the bigger picture on any of these! If we start to trend higher with Gold running to $3,000 plus, these Miners will make that much more on their next earnings reports, and the upside potential looks very promising. BUY A BASKET AND HOLD ON out of ICLs.
PAAS is possibly doing a shake out and trying to recover.
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HL I mentioned recently that many of these companies already released earnings and did NOT drop. That is a good sign. So with HL at the lows, it is starting to rise up. It gained 5% yesterday. The good news is…
HL WEEKLY HL is at the lows of a bigger pattern and it should rally to the upper trend line and then break out and run.
SLVRF decided to join in. It didn’t really participate a lot on Friday, but it was up 21% when I grabbed this in the final hr of trading.
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So the Gold Bull is on the run, and it is quickly making good gains. Last week I mentioned on Friday that I would be buying a basket with a stop, right before this broke higher and now we saw strong continuation or follow through on Monday. I also had a couple of charts in that report, like this one of AU, to show that there are many bases and once we break from the bases we rally into the higher spaces.
Some of these companies are still trading closer to the lows in the bigger picture, but if you remember what happened in 2016, many took off and buyers got left behind waiting for a pull back. It is best to buy near an ICL and add on dips if we get one. I will have buy set ups in the future reports either after we get a small pullback or to highlight some laggers. Enjoy your Tuesday trading.
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~ALEX
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BITCOIN rallied yesterday and is pausing this morning, and…
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This was Ethereum: With this we saw RIOT , MARA, and CLSK gap open and then close down 7%, so this sector is NOT where I want to be (unless I was holding one of the etfs. There will be a buying opportunity here in the future, but right now the crypto related stocks are consolidating.
