Tuesday October 29th – Breakthrough!
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THE SPX, NASDAQ, and SOXX — Did nothing big on Monday. That said, those Lithium Stocks that were discussed last week continue to outperform. Crypto stocks also continue to move higher and we’ll discuss Bitcoin later, since it is really looking bullish as I write this report Monday night.
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A week ago I had mentioned in my report that Bill pointed out that Lithium was bullish and Ed had some strong gainers too–so I put them in my report. A few are below.
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PLL – Last week I had pointed out that PLL and LAC were bullishly pushing at the 200sma, after already putting in a nice rally.
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PLL – What a beautiful breakout after crawling at the 200sma.
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LAC was forming a rounding bottom, with higher lows and higher highs (Bullish).
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LAC continued higher and has now broken through that 200sma.
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SGML I also pointed out SGML as a lithium stock and it continues to chop higher $13 to $15 and has also broken above the 200sma.
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SMR I had pointed out a bullish cup and handle pattern with the SMR, and…
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…and it broke out big-time today.
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SERV: After a strong rally, many of the Robotics stocks started to base out. SERV, RR, KITT, etc. SERV popped and closed up over 20% and RR did too. KITT looks ready to go, so the Robotics sector is perking up again too.
So the General Markets went nowhere fast, but there are areas where the stocks are really moving. Along with Lithium, we also discussed Uranium, Crypto, and MJ Stocks, so keep those on your watchlists too.
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WTIC – Oil was finding resistance at the 50sma last week and it was being rejected there, but it really sold off sharply here on Monday. This is only day 34 of maybe 40-50, so it may chop around for a few weeks -or- it could sell off for a couple of weeks. Sell off lower for a couple of weeks? Could it?…
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Sell off lower for a couple of weeks? Could it? Back in September I posted a couple of longer-term charts reminding us that Oil traded in the single digits just 4 years ago, so anything can happen.
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THE USD is still acting strong, but that still hasn’t hindered Gold & Silver.
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GOLD chopped sideways/higher on Monday. I have discussed a milder sideways drop into a dcl/ICL as a possibility.
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SILVER broke out and is now back testing. I do believe that this is really a big deal, because I think that over time, Silver will just take off and put in some very strong gains.
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GDX is choppy, but it has been trading in this upward sloping channel quite reliably.
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So even though the SPX, NASDAQ, and SOXX did not appear to do anything on Monday, many individual stocks from recent reports were adding to gains from their bullish set ups. For weeks we have discussed HUT, WULF, IREN, RIOT, etc, and the Crypto stocks continued to make decent gains too. I’ll discuss the bullish developments in Crypto below. Enjoy your Tuesday trading!
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~ALEX
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I have been mentioning that $70,000 Bitcoin is important for me (for 2 reasons). In the Friday report I wrote:
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Bitcoin could breakout at any time, but we also know with the choppiness, Bitcoin could drop & chop further. I want to discuss this a bit further in the weekend report, but Bitcoin is currently near the highs, and I have said that a $70,000 print will be a decent visual move above the slanted upper trendline.
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So on Monday I was seeing crypto stocks taking off and I was watching that $70,000 area on Bitcoin. I posted this 4 hr chart as it tagged $69,640…
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So now we DEFINITELY see that the Bitcoin breakout is visually apparent now as it reached $69,924. There is a Second reason why I have been waiting for $70,000…
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There is a Second reason why I have been waiting for $70,000 : The JULY PEAK of $70,027.
As we moved out of the ‘High-Volume Capitulation Low’, I have pointed out that bitcoin began forming higher lows and higher highs, however a move above $70,027 is really important. THAT breaks the last high that was a peak on the downtrend line. So now we are REALLY making higher highs, taking out the recent high on the left side of the consolidation and now price is moving above the downtrend line peaks.
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Bitcoin passed the July peak and is already at the May peak and then the April & March peak. Above that is clear blue skies.
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After bouncing off of the blue 200sma, BTDR ramped up 17% by 2 p.m., and it actually closed up 24.44%! What a great day for some of these Crypto-Miners.
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RIOT broke out above that 200sma and MARA looks set to do that on Tuesday.
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HUT was a buy weeks ago (or add if you bought that downtrend break as a buy and hold at $10. It was pointed out here at the 50sma as a buy too, and…
HUT has moved from $11 to $17.49 in 2 weeks. GREAT GAINS, but I think there will be a lot more gains in these as Bitcoin breaks out and runs.
WULF did a pop and drop on Monday, but it has already been a leader. $4 to $7 in recent weeks, but I also think that it has plenty of upside over time.
MARA: So maybe it’s time to grab a lagger or two like MARA, CLSK, etc. These can play catch up Very Quickly. Just take a look at BTDR and IREN on Monday and you’ll see exactly what I mean. BTDR was the one above that was up 24% Monday.
AS A REMINDER:
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Gold broke out from its own long consolidation, and we had that cup and handle breakout and run.
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Bitcoin is trying to break from a cup and handles long choppy handle consolidation too. This is why I have been saying occasionally that it can run to $100,000, or $120,000 , etc without a problem. When Gold broke out and ran, do you remember what HMY, EGO, OR, KGC, etc did? Crypto Miners should chop higher too.
Do you recall that I pointed this out? It is a weekly chart, and I was simply showing us that when Gold first made a solid looking breakout, it became due for a dcl on that same week, so it pulled back inside of the consolidation as a ‘false breakout’. It is possible that Bitcoin may do that too, but if it does, THAT IS A BUY OPPORTUNITY.
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Do not let that above chart of a false breakout scare you into selling though. Notice that after the false breakout, Gold chopped sideways at the highs and then once Gold broke out for real (& Bitcoin may be breaking out here for real) it didn’t even back-test. It ran higher and didn’t look back. It chopped sideways with a pennant, and then kept going.
And Finally, this is Bitcoin Weekly as of Tuesday at 6 a.m. ET.
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We do not officially have a break to new all-time highs, but the downtrend has been taken out and it is only Tuesday. That means that this could keep on running higher. This is a bullish set up and it is acting correctly. Several Crypto stocks have done well since that capitulation low and this sector should be able to make some very good gains going forward. This chart looks very good.
