Friday January 31st – Keep On Riding!

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THE SPX:  The General Markets gapped up higher at the open, then they sold off quickly to the lows that you see, and recovered by the end of the day. On this chart it looks like a normal up day, and this is day 12. The markets do look like they’ll continue higher over time.

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QQQ Intraday:  Just to show you what that looks like intraday, we see the run higher at the open, a fast or sharp sell off, and then the markets looked ready to recover, so I posted this chart to say that I think we’re going higher.  And we did go higher, until…recovered

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QQQ Intraday:  You can see that the markets rallied back, until U.S. President Trump spoke and declared again that he will impose tariffs on Canada and Mexico. The markets plunged with heavy volume and gave back all of the gains from the midday buy point. I hate shaky markets that lack confidence…

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QQQ Intraday:  After the Trump comments and crasg, the markets tried to bounce back, so…

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QQQ: That gave us a doji. You can see why they call these ‘indecision candles’. Even with that choppy indecisive ‘news’ driven trading day, buyers stepped in and the markets can continue higher.

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WTIC – Oil is due for a dcl.

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GOLD broke out to a new high. On spot Gold, we have a day 31 peak and a new all-time high, so this is very bullish and any dip should be mild or quick. Now on stockcharts it looks a bit different, so we’ll view that.

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GOLD – Stockcharts doesn’t show days that Gold traded on some holidays, so we see a day 26 peak, and since day 23 dipped but did not turn the 10sma lower or affect it at all really, that should not be a dcl. So at this point I think we can expect a dip into a dcl soon, but it will likely be a little chop, and maybe just a pennant or small bull flag. Gold has been quite bullish out of the recent lows.

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SILVER has been very choppy. The set up was very different than Gold, so let me explain. This is important.

1. We had 4 daily cycles, but it was unclear with all of this chop and lack of strength as to whether we had an ICL like Gold or was this a 5th daily cycle?

2. This downtrend break seems to imply that we do have an ICL. Silvers drop last week actually does resemble a dcl, so is this day 3?

3. A dcl last week is possible, but if Gold needs a dcl, Silver may dip again too, and back test the breakout as the real dcl. THAT WOULD BE A STRONG BUY.  Silver stocks are finally starting to move too.

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CDE Silver stocks were a buy over 3 weeks ago, but they were SO CHOPPY, that it is understandable that some may have sold them and lightened up, expecting Silver to dip. As mentioned above, Silvers breakout yesterday seems to indicate that Silver has an ICL and Silver stocks should rally over the next few weeks.

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In Wednesdays report I said:

GDX has been moving higher in a choppy manner for the entire run out of the lows. It only looks like day 18 for the GDX.

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On Thursday I said that it was only day 19.  I said in part:

GDX day 19.  …After all is said and done, GDX remains bullish (but choppy). I think that the 2nd daily cycle might play out even better than the first.

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GDX – So here we are now with a strong 4% pop as GDX continues to try to catch up to the prior highs. Now let’s talk about Miners again…

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Stocks that I have pointed out as leaders like KGC, AEM, HMY, AU, etc are doing well, I showed you this a couple of days ago and said to buy or add on the dip on these.

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So far, we have a break out as these follow Gold.  So the leaders are great, but what about those laggers??

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  I also pointed out that Miners like SA, SAND, BTG, NG, etc are near the lows… Near the lows with Gold at all time highs?   What about those laggers?  Well, yesterday I saw many of the 5 letter Miners move nicely too, like AAGFF here and DNCVF, etc…

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But what about SA, SAND, BTG, NG, etc? They look like they may try to play catch up, but I cannot believe these are still in the basement with Gold at new all-time highs. I think holding the leaders is the best bet, and maybe some of these if they get going.

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SAND is popping now, so it may make a run, but so far that choppiness near the lows was brutal in these Miners. I do like that this held support and volume is swelling however. Look for clues like that, if you want to buy these Miners.

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If Gold and Silver dip into a dcl soon, we will have a great buying opportunity and I will cover several Miners at that time. I’m still wondering if Silver did just dip into a dcl though, at the end of all of that sideways chop(?), so owning a few silver stocks may be advantageous. It certainly was yesterday. Have a great Friday and Weekend. It is the end of the month too, so the weekend report will include the big picture view, but ‘spoiler alert’!…things remain quite Bullish in these markets. Enjoy your Friday trading.

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~ALEX

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YESTERDAY WE WERE ON DAY 16 WITH BITCOIN –  I said

This morning I see Bitcoin breaking a small downtrend and continuing higher. It looks like scenario #1 so far, if this move doesn’t become a false breakout, but do I want the ETFs or Crypto stocks? The ETFS should follow Bitcoin, and Bitcoin is choppy but long term bullish…

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On day 17, Bitcoin is pausing, but this is a bullish set up and can continue higher sooner than later. Crypto Stocks do seem to be following Bitcoin or the General Markets higher. They are choppy, but they are slowly making gains too.