Tuesday May 20 – Resilience

Resilience : The capacity to withstand or to recover quickly from difficulties; toughness.  That is what our markets have become.

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SPX – After a gap down, I thought that maybe we would start our dip into a dcl, since a dcl can come around day 35 or so.  We now have a day 29 ‘peak’ so far and to be honest, these markets COULD run right back to the highs and then dip into a dcl. Some daily cycles have been into the 40+ day point.

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NASDAQ – A run to the highs and then a dip? It is possible, and if so, the dip may NOT be as deep as the 50sma.

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BBAI – I was pointing out that the pull back in BBAI may be close to its target.

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BBAI – It even went Green by the end of the day,  so this ‘AI’ stock is basing out, but now has higher highs and higher lows. It is a ‘buy and hold’ candidate, as long as we understand that it CAN drop to the blue line again. It may or may not.

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FCEL is basing out and it has a good look to it. We rode this buy & hold in 2024 from $6 to $11or $13.  Price is flat and the MACD is climbing. It has been held down by the 50sma, but it looks like it will break out with that volume pattern.

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I have had LAES on my watchlist due to that massive spike in 2024, but lately it just didn’t seem to be doing anything but base out. It suddenly popped with increased volume by midday, so I posted this. I also took a starter position since it got above the 50sma. IT then closed up 20%. I like the set up and may add if it dips.

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The Nuclear Energy sector includes SMR, OKLO, LTBR, NNE and they all have already released their earnings. They all look good. I was pointing out NNE on support and it could be ready to move higher. QUANT STOCKS have been doing very well too…

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QUANT STOCKS like QBTS, QUBT, ARQQ, have been doing very well too..  Actually ARQQ and QMCO seemed to be lagging, but that looks to be ending…

 

QMCO -One hour into trading I posted this chart because QMCO has been basing out, but was now popping with good volume for just one hr of trading.  Was it ow time for QMCO & ARQQ to run?   The others have been…

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QMCO was up 24% an hour later. These move so quickly it is scary.  🙂

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ARQQ– also at 10:30 I saw ARQQ adding another good day (it popped Friday after riding the 50sma). This closed up 31%!!

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This closed up 31%!! So is there another lagger? Yes, QSI…

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QSI– Is still basing out, but when these go, as you’ve seen, they really go. I pointed this one out a week or so ago too, as it set up to break the 50sma, but the follow through is yet to come, I would guess.

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And QUBT and QBTS were pointed out a while ago. They have been leaders and running strong. A good example of what could happen to the others with the ICL in place.

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QBTS was $7 in April at the 50sma when I was pointing it out. They had earnings coming up, so that was tricky, but…

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QBTS and QUBT Popped on earnings and have put in excellent gains. This sector can pop and drop 10-20% in a day, so please allow that to influence your position size (reasonable) if you try this sector.

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THE USD is still being held down by the 50sma, but has made progress.  As it seeks out a dcl, Gold has been rising, but NOT very quickly.

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GOLD was expected to run to the downtrend line out of a dcl, and then drift lower to a possible ICL. Gold is struggling at the 20 ema so far.  Let me grab a live shot…

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Let me grab a live shot at 7 am ET.:

Gold is still looking too weak to push higher.  That could change, we could see a nice ‘Pop’ if the USD drops, but what a difference from the way it left the last dcl behind, right?

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SILVER chops sideways.

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GDX looked better than Gold, pushing above the 50sma. I mentioned that you could but the dcl with a stop, but I honestly do not expect a lot of progress here.  We’ll see, Bulls do surprise to the upside, but this looks like a 4th daily cycle for GDX, and they often get tired.

 

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So the bullish set ups are doing well, the General Markets could dip into a dcl at any time, but they have been very resilient! A run to former highs is possible before we get that dcl dip.  We’ll see. And as for the Precious Metals I expect  a dip into an ICL after  bounce.  Bull markets can surprise, but GDX in a 4th daily cycle should show more weakness than strength, and Gold seems to be displaying that ‘weaker’ price action now.

There are plenty of good set up in the General markets, many ‘bases’ are breaking higher and stair-stepping higher, so gains are coming in, but …I think that once we get the dip into a dcl, I can showcase many more ‘stock picks’ once they settle into a support area.   So trading has been good now, and the next dcl will offer some great entries too. Enjoy your Tuesday trading!

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~ALEX

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I looked up BITCOIN and I thought,

“WOW ARE WE IN DEBT!!?

Bitcoin dropped from up $105,000 to down – $105,000  🙂    o.k., this must be a glitch…

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BITCOIN dropped yesterday and then tried to recover (surprises to the upside). At day 41 and being back at the highs or resistance, I mentioned in the weekend report that Bitcoin could start to find resistance, chop sideways, and even dip to put a handle on the cup, but it does also have time to break out first and then back-test as a dcl, so we shall see.  ALSO, even if …

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ALSO, even if bitcoin chops sideways, the crypto stocks can push higher with less resistance.  We are seeing some do that now as they leave bases. Bitcoin can churn sideways and Crypto stocks may push higher.