Wednesday January 22 – Looking Good!
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DOW – I discussed that the DOW has an a-b-c style drop that leads into an ICL. It is now in recovery mode and its running quickly higher as it recovered the 50sma yesterday.
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THE SPX regained the 50sma too, and this is only day 5 of the first daily cycle, so there should be a lot of upside to come. The RSI regained 50%.
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I said that I would like to discuss some of the bullish stocks like AMZN, NVDA, PLTR, AAOI, RKLB, MU, SOFI, RDN, AI stocks, Robotics stocks, and Quantum stocks, etc etc when the ICL is in place, so I will have some of those stocks AT THE END OF THE REPORT–AFTER THE BITCOIN DISCUSSION.
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THE USD is turning lower as a dcl comes due (& likely an ICL after that). I had been pointing out the divergence in the MACD when price reached new highs, signaling that a pullback was coming.
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GOLD is running nicely as it broke from that triangle. It has almost reached the all-time highs now. With a triangle, we usually go to the apex of the triangle and start the count there -or- add a daily cycle (The first one doesn’t really count once the triangle is established). The only problem is that we have a mixed picture when it comes to the Miners. I’ll show you that shortly.
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SILVER has not broken the downtrend and it lags what Gold is doing. As a Bullish sign, Silver did a minimal shake out at the 200sma and has regained the 50sma. This is a 5th daily cycle or a first, since Gold has an ICL and Silver does have an a-b-c down into the recent low. Volume increased yesterday too.
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THE GDX broke above the 50sma last week and re-tested it last week too. GDX looks good as it comes out of the sell off lows, but individual miners are telling a different story, so stock picking is important so far. The leaders are leading, the laggers are lagging. Let’s take a look…
AEM, KGC, IAG, AU, HMY, etc -these are running back to their highs, and you can see AEM here up 4% Tuesday Morning. You can see the strength, because it actually made a higher low when the GDX broke down below the 200sma, but some other miners are REALLY lagging.
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NG – Now take a look at NovaGold. It was at the lows and still slightly red on a day when Gold was close to the all-time highs? I listed a few others that are not rallying yet too. This could be a bullish descending wedge, so it may break out and run, but if this was in your basket of Miners, you were no doubt disappointed lately.
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SA – Another example is Seabridge Gold. This had a decent (but choppy) run July to October, running from $13.50 to over $20. Now it dropped to $11 and is only at $12.20, with Gold quickly heading back to the all -time highs? I feel like SA is a buy, because volume popped and it isn’t dropping anymore, it is chopping sideways, but up until now this is very disappointing with Gold 1. putting in a triangle of higher lows, 2. breaking the downtrend and 3. running to the highs again.
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NEM – I pointed out NEM as a buy near the lows and it has been slow and steady, but it’s a far cry from the $58 that it traded at in October. Again, I’d still buy and hold a Miner like this, it could pick up the pace soon. The MACD is widening out and the RSI is strong, but it is a little disappointing as Gold recovers quickly.
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I’ll cover Bitcoin below and then I have some stocks to discuss with the return of the Bull run in the General Markets. Whether you are a ‘buy & hold’ investor near the lows, a short-term trader, or a buyer of a basket of Miners near the lows, there is something for everyone at this point. Enjoy your Wednesday trading!
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~ALEX
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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. Why? They were acting well recently, with HUT, WULF, BTDR, etc starting to kick it into gear, but let me show you something…
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RIOT moved back to the highs, but yesterday when Bitcoin was finishing making that cup, it dropped? This was with the General Markets higher too! Was it the only one? No…
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WULF started to move higher last week, but it also dropped yesterday, with the General Markets higher and Bitcoin green. There are signs of good health, like the MACD, but this was not a bullish move.
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IREN was doing well, with a series of higher lows in place since September, but last week it broke above a downtrend line, and yesterday dropped back to the lows? It did bounce off of that lower trendline by the close, but I owned it last week and I rode it higher and sold it sold it back at the low yesterday. 
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So this price action is concerning and the Crypto ETFS may be the way to play Bitcoin. I have also owned/ traded BITX and done very well with that.
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Stocks in the General Markets are set up bullishly with the ICL in place, so let’s take a look at a few.
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AMZN – I have discussed former bullish stocks like AMZN, NVDA, NFLX, GOOG, MSFT, etc etc as worthy of buying and holding at the ICL (lows). AMZN reversed above the 50sma during an ICL drop (bullish) had a bullish breakout yesterday too.
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TSLA broke the short but steep downtrend and can run when it gets going. It also held above the 50sma during a General Market correction. TSLL is a leveraged version and it really ran strongly on the last run, but it can also sell off sharply when TSLA drops so be aware of the risk! (No MACD cross here yet).
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RDW – Well, forget this one for now. This was on my watchlist because it ran fairly steady from $3 to $18 last year. After the market correction and a drop from $18 to $13, it Popped 51% yesterday alone. Look at that perfect tag of the 50sma. Buy a pullback near the 50sma if you see one.
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Another one that I have mentioned in the past shot up without me. RKLB gapped up and kept going, up 30%! Notice again a clue of its’ strength…
1. A sideways chop during a market correction, not a deep drop.
2. Above the 50sma, but this still dropped from $30 to $22.
3. If you see that kind of strength in a stock that just ran bullishly? You may want to buy it.
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SERV is one of the bullish ‘robotics’ stocks. This is extremely choppy and tough. If you looks at the drops, they were $15 to $11, and then $18 to $14 for example, even the highs of $24 to $15 in 4 days, but it is chopping higher and went from $8 to $24 in less than 2 months, right? I guess you could call this a buy at the 20sema, and that was yesterday and maybe today.
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I really liked SOFI and mentioned it a few times during the pullback. It ran from $6 to $17 since last August and this one actually did pull back with the market correction and lost the 50sma, but regaining it was the buy. Now we may have to wait for a dip, maybe a back test to the 50sma eventually? The last 5 days saw it rocket back to new highs and it does not pull back often when it gets running (See Oct to Dec for example).
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SOUN is an ‘AI’ stocks that has not started to run again yet, but it does looks ready. A closer look shows us that it ran from $6 to $24 in 2 months. It is extreme with the drops at times, but the gains were quite good.
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AAOI was also one of my favorites that I traded last year, it made an amazing run. It actually popped and dropped yesterday at the 50sma though. I almost bought this, but I had grabbed some Quantum stocks instead. I’ll keep my eyes on this one for a close above the 50sma as a possible buy.
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These Quantum stocks look like they have small moves, but this one (QBTS) was up 20% and looks bullishly set up to move higher too. A STRONG WARNING is that these stocks ( QBTS, QUBT, ARQQ, QMCO, RGTI, IONQ, etc etc) These stocks can drop 20% in a day and still be ‘o.k.’, so trade at your own risk level. They also ALL dropped roughly 50% or more 2 weeks ago with a negative statement by someone ( I think it was the CEO of NVDA?). So be forewarned and be very careful.
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QUBT was another that traded above the 50sma and moved up 17% yesterday, but it looks like a tiny move on the chart.
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RGTI was up 42%. Read the chart please. Beware of the risks with Quantum stocks, Robotics stocks, and maybe AI stocks.
