Wednesday May 28 – Looking Good!
As time moves forward, developments in the markets remain bullish and, in some cases, they even look to be improving in various ways. Gold, Silver, and the Miners are still bullish looking, despite the idea that an ICL drop could play out. I see ‘interesting’ things happening with Silver stocks and even smaller Gold stocks, so we’ll take a look at that too. Let’s go to the charts and see what has been taking place.
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1. Here I am using the view of the 10sma that acted as support on the way up. The SPX lost that 10 sma for 3 days and then regained it, which usually is something that we look for to detect a dcl. So we see that here.
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2. In the weekend report I said:
SPX DCL? – We are within the timing for a dcl, and right now we have a mild 4 day dip lower to the 20 ema. That 20 ema was resistance in March, so it may act as support now, but we won’t know for sure if the dcl forms here until we get a good bounce.
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3. The SPX dropped to and reversed at that 20 ema and the 200sma, which now acted as support. This looks like a mild DCL at day 33 that I mentioned in the weekend report.
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The NASDAQ reversed above support and then gapped up on Monday. It is already at the point that it is almost reached new May highs. I really think that we have a dcl, and next I’ll show you another reason why…
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THE REASON IS THAT THE STOCKS ARE ACTING QUITE BULLISHLY.
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I was pointing out how BBAI barely dipped lower. It was bullish with high volume spikes, rather than dropping into a low. BBAI looked ready to go when a dcl came in…
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BBAI started to run on Tuesday here and it was up 13% in the first half hr, so I posted this in the comments with this chart. It actually went on to close up around 25%!!
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SOUN is also an ‘AI’ company, and it rested at the 50sma. On Tuesday it also popped 13%, and again, the general markets look to have put in a dcl and the stocks seem to think so too. AI stocks reversed at support.
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SOUN formed a base and looks ready to move higher. It broke above the 34 sma and back-tested it. This was and is a buy. A run to the former $24 highs (over time) would be excellent from $11.
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AI is also an ‘AI’ company (They release earnings today after the bell). It also based out, popped over the 34 sma , and back tested it for the dcl. It doesn’t look like much, but this was a $17.50 to $25 move already, and the $45 mark is not out of the question. Again, earnings release today.
Another Example of recent stock strength:
In the weekend report I mentioned that you can see that RKLB is still actually climbing, not dipping lower. 2 days ago RKLB dropped and reversed, so the dip is hardly showing up in some bullish stocks and we may just see a mild dip when all is said and done.
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RKLB Gapped up and closed up 13%, so buying at the 20ema on many of these is working out nicely.
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RR has been pointed out a few times as a base that reversed at the 200 sma. It jumped up 30% yesterday! This is a robotics stock, so now I look at other ‘robotics’ stocks…
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ARBE Robotics was up 10% and you can see that it also has been acting correctly and bullishly during a market sell off.
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RBOT – This stock doubled in 3 days of April and then sold back down to the 34 sma. This may be ready to move higher too, it was up 11% yesterday. A BIG PROBLEM with RBOT is the volume. It traded 16,000 all day, so I will not buy it unless I plan to buy and hold for a long period of time.
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BOX was on my watchlist and it moved from $28 to $31. It dropped for 4 days with the market sell off, but then I saw a huge spike in volume on Tuesday and that can be ‘smart money’ Box looks like an inverse H&S too.
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Also in a recent report I said to look at TSLA, NFLX, NVDA, AMZN, etc and notice that they are hardly dipping with the market sell off. That is bullish and this was TSLA on Friday. It was NOT selling off as the Nasdaq sold off.
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And this was TSLA on Tuesday, so again, even with the markets selling down, some tocks looked very bullish. Check your watchlists and you’ll find that there are many buying opportunities for the 2nd daily cycle. Many of these will form a ‘cup’ by running back up to the recent highs.
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I have pointed out FCEL as a clean energy stock that had a great base and volume was starting to increase. I looked at it yesterday and it was down & trying to recover. It closed the day up 5% so I started to go through my other energy stocks (like CLNE, USEG, GEVO, ULBI, etc. They look very good…
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To start with, notice how CLNE rallied from $1.35 to almost $2.20 and then just dipped down to the 20 ema. This is what it looked like as of the close. Now take a look at ULBI…
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ULBI looks just like CLNE, except that it popped up 12% on Tuesday. The charts look very similar and the set up of CLNE is bullish and earnings already came out weeks ago when it rallied higher.
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So I really feel that we are seeing a mild dcl in the general markets and MANY good companies are running higher.
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I thought that the sharp drop from March to April could lead The USD into an ICL, so we may now see a dcl form anywhere here and it can push higher. We may have a day 25 dcl. We will soon see if the inverse relationship between Gold and the USD has returned or not.
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GOLD is on day 7 and it does look bullish, but I have already explained how this could roll over one more time and drop into an ICL. Is it possible that we just saw an ICL a-b-c drop below the 34 sma? I cannot rule it out if Gold is about to go parabolic, and to be honest, the GDX looks even more bullish. Silver is also acting bullishly, so this sector is in a bull market and is now acting bullishly after a sell off. This deserves monitoring.
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Yesterday was VERY INTERESTING with Silver. I had just pointed out the similarity between Silver and Platinum and I discussed the strong Platinum move along with PLG and SBSW. Well, yesterday Silver sold off for the morning, but I saw Silver stocks steadily climbing, as though they were being ‘Accumulated’. Silver then climbed back up into the close and was only down 19 cents in the end. KEEP AN EYE ON SILVER.
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SILVER sold off and tried to recover, but like I said, Silver stocks looked quite bullish despite the sell off. I will discuss that after GDX in this report.
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GDX dropped with Gold and Silver, but it has already broken out and the MACD crossed upward. I have to admit that this is a bullish looking chart and even the crash below the 34 or 50sma and recovery is a bullish shake out. I mentioned that this could be viewed as a buy with a stop and see what happens. So far, I don’t see any reason to sell. THIS actually does look like an ICL in a strong bull run.
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So while Silver sold off yesterday, you can see that AG surged 5% and broke the 200sma.
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SVM was up 6.33% midday, when Silver was down quite a bit. It also broke above the 200 sma and I would say that a set up like this is a buy, especially since their earnings has already been released last week. It closed even higher, almost up 7%.
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Many Gold stocks were down with Gold down, but IAG had some news and the set up looks bullish actually. If Gold can move higher, IAG should be a good Miner. I also think that…
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I also think that you should take a look at what was once ‘laggers’ in Gold. While the leaders HMY, KGC, AEM, etc sold off, laggers like NGD, MUX, BTG, VGZ, etc are actually finding buyers.
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Did you know that VGZ dropped 10% after releasing earnings on May 1, and then took off higher 2 weeks later? It popped up 16% last week and has now doubled since February and played catch up while Gold sold off.
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So there are a lot of bullish set ups out there with the General Markets, clean energy, etc , and I continue to see some very interesting developments over time in the Precious Metals sector. I do not see any market moving data this morning, but The Fed Minutes will be released at 2 p.m. today. That may give us a ‘reaction’, we’ll see.
Enjoy your Wednesday trading and Bitcoin is below.
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~ALEX
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Bitcoin is on day 51 today, so it can rally and then drop into day 60, or it can chop and drop into a low around day 60. It will be a buyable dip, but also it will likely be a mild dip and you may just want to ride it out if you bought a Bitcoin ETF. I would say that the crypto stocks will dip a little more than Bitcoin, based on how they have not been as strong as Bitcoin, but they may gain traction and buyers on the next run higher.
