Wednesday October 23rd
I was so happy to see over 30+ comments below yesterdays report, thank you so much! Ed pointed out MJ’s popping (they sure did) and Bill mentioned Lithium (looking very good) and some other stocks were mentioned along with several ‘well-wishes’ to me- thanks very much. I spent the whole day in bed and only got up a couple of times, but I couldn’t even look at charts or anything. I was wiped out, so Tuesday never happened to me. Let’s take a look at what I missed with The Tuesdays chart!
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The SPX and General Markets are chopping sideways and we are on day 13.
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THE SOXX is stuck at the 50sma and is making no gains here yet. Usually when I go long the markets, I often grab SOXL, but that is right at the dcl, so that has been a dead trade.
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WTIC – Oil popped on Tuesday and it is starting to put in a series of higher lows, but it is choppy and tough to trade /ride.
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USD – I did not expect the USD to be this strong by breaking above that 200sma. It is due to drop into a dcl, so I thought that it would pull back at the 200sma and allow Gold & Silver to run higher. Well—they did anyway, despite the strong rally of the USD, so that is the good news. The USD could dip lower at any time.
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In Tuesdays report, I made this important comment about Gold being able to rally in a 4th daily cycle during a bull market (It is the same action that we often saw with the General markets bull Run):
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GOLD popped and dropped on day 7, but it is strong. We could see the peak at anytime, but to give us a Left Translated daily cycle, it just needs to peak 1/2 way through, so a day 11 of 22 or 13 of 26, etc. Gold has been strong.
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GOLD made new all-time highs on Tuesday again (day 8). I’ll say it again: To get a L.T. daily cycle here, we just need to peak 1/2 way through, so day 8 of a 16 day daily cycle, even day 11 peak is normal for L.T., and you’d only need 22 day daily cycle. This is a chart of a strong bull run with mild dcls (dips).
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SILVER finally joined the party and broke out of that inverse H&S. I had been saying that Silver could run because it put in an ICL in August and we are only 2 and a half months ahead of that ICL. Silver is on day 10 on ‘stockcharts’, but shows up as day 12 here using spot Silver. Either way, it can continue higher.
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I have been asked if I have a target for Silver. There are a few different ways to calculate a ‘target’, but these targets are sometimes precise and at other times a moving target. They CAN extend under the right conditions, so I have them in my mind, but I just allow things to unfold as time goes on. IT IS ALMOST IMPOSSIBLE to catch and cash out at the exact top (even though you will here some claim that they did that 4 days after the fact -lol).
2 different ways to calculate a rough target are below:
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SILVER you can see an inverse H&S pattern, so you take the depth of that pattern (similar to a cup and handle pattern) and you can add it to the top of the pattern or the breakout. THAT looks like $38. You can also take that depth and add it to the last dcl, THAT gives us $36ish. OR…
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SILVER – You can also view this as a 5 wave rally and the 3rd wave is often the strongest, but sometimes the 5th matches it. So we take that as an a-b = c-d, or in this case: 2 to 3 = 4 to 5 and that lands at $36 ish also. One thing to keep in mind here though is…
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One thing to keep in mind here though is that we are talking about Silver and it often can do whatever it wants, and that means that it can become a rocket ship. Even what started out looking to be a 5 wave move just exploded higher.
GDX broke the upper trendline and that is bullish. It often leads to a back test later and then a steeper rally than that first sideways channel. We’ll see.
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I want to share a few charts below bitcoin that are NOT Crypto, they are MJ and Lithium, since they really do have some good quality to them. Enjoy your Wednesday trading, I should be around for a good amount of today, I feel very much better than yesterday.
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~ALEX
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BITCOIN does not have a significant breakout yet, so it is reacting to resistance. This chart was yesterday and Bitcoin has actually dropped a bit lower.
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BITCOIN I have us on day 13 and under resistance, but this could be setting up to breakout, and the crypto stocks reflect that idea.
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The crypto stocks reflect the idea that Bitcoin bottomed with that capitulation low. As Bitcoin pulls back, some are still running higher. HUT, WULF, CIFR, etc have been highlighted in recent reports.
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LITHIUM STOCKS had already made a nice move, and after a pullback, you get to see if they put in higher lows and may start trending higher. That IS what Lithium stocks appear to be doing, so I am just going to post 4 or 5 that I follow, without explanation. The explanation is that these look like they are starting a bull move.
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PLL
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SGML
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PLL
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LAC
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LIT is an ETF
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And when it comes to the MJ Stocks, they rallied earlier in the year and many just chopped sideways, but then really put in a large pop yesterday, so see ACB, CGC, OGI, SNDL, CRON, TLRY, and so on.
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OGI – This seems to be stable now.
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ACB – so check the charts and you’ll see that many of these look to be around support and popping with buyers. This has been VERY choppy and obviously very hard to buy & hold, but it really has respected the 200sma. It may eventually start to trend higher.
