Tuesday September 24th – Dips
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The SOXX still seems to be struggling at resistance area. If it would run back to the highs like the SPX did, it would make a good trade using SOXL (or even NVDA, MU, TSEM, AMD, etc).
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AMD semiconductors are not leading the way higher, but if they play catch up, they’d be a good trade. You could buy a breakout higher or the dip into a dcl in a set up like this.
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THE SPX ran to new all-time highs and is on day 35 today. These daily cycles can run from 35 to 40+, so I drew in a pop and drop as the next dcl, but it may just churn sideways and then drop too. The next dcl is a buy.
WTIC – I am expecting Oil to drop again after this bounce. This daily cycle is very L.T., since it peaked on day 5.
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THE USD also continues to struggle at resistance after putting in a dcl, and it even broke to new lows last week.
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GOLD made new all-time highs again on Monday and it should be day 14 of the 3rd daily cycle.
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SILVER – This is tricky, because Gold is in the 3rd daily cycle and Silver may just be starting the 2nd one. That may be a shallow dcl on day 31, or this can drop further and is on day 34.
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GDX cycle count is very similar to Silvers count. I was thinking that the day 22 or 23 area is too early for a dcl, so that day 31 pop and drop could be a dcl, matching Silver. On Monday we also saw GDX pop and drop.
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In the short term, it has been choppy day by day, so if anyone is trying to jump in and ride a move higher, it is likely not a profitable trade. It has been choppy and we have been in the time of a dcl for a few areas. The General Markets should be in a first daily cycle and looking for a dcl soon, and if you just glance up at the GDX chart above, you can see that it has been choppy, but it has also been trending higher. So the Miners are very choppy, but they are popping and dropping lately too. It was a buy and hold out of the ICL and we do have a series of higher lows and higher highs. That also makes this a buy the dip set up (or add to current positions if you wish). Enjoy your Tuesday trading.
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~ALEX
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BITCOIN I had been saying that I have a measured move target of $65,000, and so far Bitcoin ran to a high of $64.730 yesterday (day 49). This is Bitcoin at 7 a.m. . I am calling that capitulation sell off low the ICL and that matches the General Markets. Since a daily cycle comes at roughly every 60 days, I will be looking for a dip into a higher low soon, even if this runs higher first. Crypto stocks remain mixed at this point, with a few moving off of the lows (WULF for example) and a few others lingering at the lows (CLSK, MARA, RIOT for example). I have traded a few during this move out of the day 32 lows, but it was too choppy and difficult to read. I was stopped out a couple of times and didn’t make money (though I would have if I just bought and hold at the very lows, especially in WULF or BTBT, but MARA, RIOT, etc are at the lows and choppy). SO I will see how they do after Bitcoin puts in the next 60 day low.
