Friday June 27th – The Weekend Is Just Ahead
This was a very good week of trading if you took trades like BBAI, AAOI, RKLB, or many other long trades in the General Markets as they race back up to the all-time highs. Hopefully Friday cooperates and just eases us out into the weekend to relax and enjoy some downtime. 🙂
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THE SPX is now back up at the highs and it still has time to break out and back test for the next dcl, so I drew that as a possibility below.
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Do you recall when I labelled The SOXX as lagging and a ‘Buy’ a few times? Well, it not only caught up, but it hit 2025 highs.
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I want you to see how some of the semiconductor stocks like MU & AMD acted at the 200sma, and then how they acted after they broke out. We see a sideways churn and then a strong rally higher, right?
Well TSM was still doing that churn under the 200sma, so this would be a buy now or when it breaks higher. I posted this yesterday in the comments within the first hour of trading…
…and then TSM broke out higher and closed the day above the 200sma, volume increased, and this can be considered a buy.
AAOI continued higher, but with lighter volume, it can pull back, so I drew a re-test of the breakout and that would be a good area to buy or add IF IT DIPS. This can just run higher too.
I also drew AAOI as travelling to a prior peak, and then dropping lower, possibly when the markets drop into a dcl.
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BBAI had another 20%+ day, so this ‘AI‘ stock in moving fast and has very good volume.
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AI – With BBAI running strongly out of its base, I have to wonder if ‘AI” will do the same. I like that it has turned up at the support of the 50sma, and it did bounce strongly after earnings in late May.
What about other ‘AI‘s tocks like SOUN?
It also ran very swiftly in November and December, so I think that this sideways consolidation or base also looks constructive,. I would keep this on my watch list and check it daily. Let’s zoom in…
SOUN – Zooming in we see a post earnings pop and then a wedge formed. SOUN lost and regained the 50sma, so it may be starting to find buyers.
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SERV is one of the robotics companies ( Like RR, ARBE, KITT, etc) and it almost tripled out of the April ICL. It then bullishly back tested the 200sma and is still trading there.
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DNA – In the first half hour of trading I mentioned that I liked what DNA is doing as it moves off of the 200sma. It actually kept moving higher, but…
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…but I really don’t like to see volume drying up as it pushes higher. It either needs a surge of volume soon, or DNA may pull back and then try to move higher again. In the final hour, we saw DNA up 5.2%, but I do wish that it had a nice strong surge of volume as it runs higher. The set up is bullish.
WTIC – Oil is chopping sideways after it crashed earlier this week. That could just form a bear flag and then drop even further, since this is now a day 15 peak and would become very L.T.
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THE USD dropped even lower again and is failing. I expected a USD drop to help Gold, but…
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GOLD actually closed down, despite the USD drop today. A couple of days ago I mentioned that our day 21 ‘peak’ was at the highs, but the MACD was weak. That is what Bitcoin did. That USUALLY leads to a failed break out or a period of sideways chop. Well, I hate to mention it, but Silver popped as the USD dropped, and Gold just chopped, so even though we may have a day 26 dcl, but this may also remain choppy for a while.
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Due to the deep MACD divergence, I decided to do a little extra research tonight, similar to what I did when I saw this in Bitcoin, and I will gather charts and report what I found in the weekend report.
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SILVER has a swing in place, so it looks like a dcl. I will say that I added to Silver stocks 2 days ago and they did not respond quite as well as Silver did, and I’m not sure why. This does look like a dcl though.
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GDX moved higher at the day 27 reversal at the 34 sma. This also is a swing low and looks to be forming a dcl even while Gold closed lower.
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I just wanted to point out that NG dropped on Wednesday with earnings, but it was able to bounce back above Wednesdays candle and regain that 50sma. That was encouraging, because Gold was only slightly higher midday and closed red.
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 The General Markets are at the prior highs. Oil fell apart after a strong surge higher, due to geopolitical tensions. The USD actually broke to new lows and Silver responded well with a nice Pop and a swing low, but Gold surprised me by closing slightly red. Actually, I’m not 100% surprised, because the MACD is showing weakness at the time. That CAN change over time if/when Golds price climbs, but right now I’m seeing what I saw with Bitcoin and it causes me concern that Gold will just remain choppy. I actually decided to do some extra research on that tonight (on Thursday night), and I plan on including what I found in my weekend report. It basically points to what we are seeing with Bitcoin right now too. Bitcoin is covered below.
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 I was invited out for breakfast Friday morning, but I’ll be back later in the morning for trading. Enjoy your Friday trading & weekend!
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~ALEX
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UPDATE: Well, so much for hoping that the markets will just ease us on out into the weekend without incident on Friday. 🙂 A slight blip on the radar has developed, but it shouldn’t amount to much in the bigger picture. Let’s dicuss…
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GOLD 6 a.m. Friday: Gold sold off overnight and using the cycle count from the spot Gold chart we now see a new low on day 31. If Gold bounces back before 9:30 a.m., this new low won’t show up on ‘stockcharts’, so I am pointing it out here. Now take a look at that MACD. This is what I will cover in my weekend report. For now, we are still expecting a dcl and the timing is still normal for a lower low.
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SILVER 6 a.m. – Silver dropped too, but since it pushed higher on Wednesday and Thursday, it may or may not make new lows on this drop.
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The timing is fine for a new low in Miners as we anticipate a dcl. Silver already looked like a swing low was in place, but Gold may put one in today or next week.
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BITCOIN continues to chop sideways and was actually slightly red on Thursday when Crypto stocks took off higher with volume. It seems to have been a reaction to news of a buy out of ‘CORZ’, since they were at the lows or even Red for the day when suddenly they all popped at about noon time ET.
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The POP & buying seems to have been a reaction to news of a buy out of ‘CORZ’, since they all popped at about noon time ET.
This was RIOT intraday…
This was WULF intraday…
CORZ up 37%
CIFR up 10%
WGMI Up 10%
WULF was up 15%
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This was WULF, and you can see that volume increased nicely as these all surged higher. Now we have to see what kind of follow through these get as Bitcoin continues to churn sideways. It is possible that the miners will take the lead and find buyers as Bitcoin chops along.
