Thursday January 23rd – What About The Miners?
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SPX – The General Markets are on the march higher. You can see from the last ICL that this can continue for a while and then a pullback is due. That pullback may eventually drop to the rising 50sma.
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THE NASDAQ broke the downtrend line too, indicating that it has left behind an ICL.
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SOXX – Back on January 6th I pointed out that our failed SOXX Chart was now putting in higher lows and lower highs ( a triangle) and a breakout usually indicates that we have a mild or stealth ICL.
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The SOXX then dipped back to the APEX and took off higher. It has 6 green days in a row, so there is no doubt that we now have Bullish ICLs in place. Yesterday…
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Yesterday I shared a good number of charts of bullish set ups -stocks that ran well out of the last ICL.
I had our regular AMZN, MSFT, NFLX, NVDA, GOOG, etc and charts like AAOI, PLTR, SOFI, etc etc. These are often buys out of the ICL or You want to make a check list and watch for pullbacks to buy too.
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WTIC –
1. Oil had a very choppy bottoming process that formed a triangle.
2. That triangle broke out and price ran straight up for a couple of weeks, even slicing through the 200 sma..
3. It now seems to have reached a larger downtrend and pulled back to the 200sma, but if this is due for a dl, we may see it drop further and then even drop into the next ICL, since this should be daily cycle 3…
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WTIC – That move into a dcl going forward could be deep or mild over time, so it may look something like this, and remain under the longer downtrend line. It also MIGHT dcl and then breakout over that downtrend, so we’ll have to wait and see. It looks overbought and the last couple of tags of this downtrend did lead to a long choppy drop.
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It looks overbought and the last couple of tags of this downtrend did lead to a long choppy drop, so I am looking at it like this, unless this patten or larger downtrend changes.
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THE USD has been dropping lower and should be due for a dcl. That could be the last one that forms as Right Translated and then we’d start to dip lower here too. That was a strong US Rally, but it did now hinder Golds progress.
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GOLD broke the downtrend and has put in an ICL, but even with this follow through, the Miners remain mixed, and some look weak. I discussed that yesterday and it is very disappointing so far. Gold looks ready to make its way up to the $3000 area.
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SILVER is less exciting so far, but it did hold the 200sma area. Silver is above the 50sma, but it closed slightly red yesterday, despite Golds bullish path higher. Silver has not confirmed an ICL, so a breakout of this downtrend would be much more bullish for Silver.
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GDX did break that downtrend, but it closed red yesterday after Golds follow through higher. Again, this is frustrating since we would expect to see Miners back up at thoer highs when Gold reaches its’ highs. Some are doing well (AEM, KGC, IAG< etc are near the highs, others are near the lows, as mentioned yesterday (NG, SA, MUX, etc).
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The Precious Metals Miners and Bitcoin Miners have been a little disappointing with the progress that Gold and Bitcoin are making. It may change over time, possibly when Silver breaks out, but until then you could look into investing in Crypto ETFs and GLD, or the leading stocks in these sectors. I’ll discuss Bitcoin below and some crypto stocks were actually up with Bitcoin down yesterday, so that is worth noting. You may want to run through all of the charts in yesterdays report again too. Enjoy your Thursday trading!
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~ALEX
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Yesterday I discussed Bitcoin as being bullish and only on day 8. I said in part:
BITCOIN has acted as expected and remains bullish, and it is only day 8, so this should have days of good upside, but the Crypto stocks are a little questionable. Bitcoin was up and several were down.
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BITCOIN dropped on Wednesday and continued lower overnight. With this drop it was surprising to see that RIOT, MARA, CLSK, CIFR, IREN, etc reversed and turned green. MAYBE they will follow Bitcoin higher after all. We’ll continue to monitor that. Again, Bitcoin was down…
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Again, Bitcoin was down and yet we saw several Green Crypto Miners reverse above their support. We’ll see if they can remain bullish.
