Thursday July 24th – Chopping Higher
We do have possible market moving data today. Recently when the markets are acting strongly, we get an initial sell off and buyers step in. We’ll see if something similar happens today, but the markets do remain bullish. NOTE: Data for Friday is less notable.
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SPX -The general markets moved higher and this should be day 5, as things are at this point. I mentioned the Dow Jones factor in the last 2 reports.
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LAC dropped but I see a possible bull pennant forming here. I mention this because it’s one that I owned and when it dropped it seemed like it dropped quite a bit before the bounce back, so this may be the reason why.
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QBTS dropped on Tuesday and Wednesday, but reversed at the 20 ema and surged up 15.4% by the close. This was taken in the final hour. This resembles an inverse H&S now. Earnings isn’t due until Aug 7th.
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IONQ is at the 20ma, so at 10 a.m. I mentioned that it may be ready to push higher too. It closed up 3% but it still looks like a reversal higher.
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LUNR has been trading in a tight squeeze so I mentioned this as bullishly trying to break above that 200sma again, but…
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LUNR – It rallied to up 16% in an hour and closed up 18.5 %, so you can try to buy this breakout, or watch for a possible flag, dip, back test. We may – or – may not get one.
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BBAI sold off and reversed, so I posted this in the morning right at the open. It’s a buy with that reversal and it has BIG up-days when it gets going.
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BBAI then went in to move higher by 7.6%. Off to a good start.
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BIOTECHs are perking up nicely and some (like our DNA) have already been running well. I wrote in the comments of some on my watchlists that look good…
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CDXS was in yesterdays report with this chart…
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CDXS gained 10% to the 200sma and then started to pull back. You know how this works. It could breakout today or it may bullishly ‘crawl’ sideways as a buy.
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WTIC – Oil is choppy and difficult, but I do see some Oil stocks that look decent. I’m currently not trading that sector so I rarely cover it, but you can ask me in the comments (or email me) if you want me to cover NOG, VET, VLO, WTI, APA, or any that interest you. They are a mixed bag, with WTI crashing and VLO acting very well. VET looks set up bullishly, so it is mixed. I will show you below…
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VET – NOG, APA look bullish to me after a lot of chopping around. You can look those up with a 10, 20, & 50sma. I would actually buy this if I was confident that OIL was going to move higher. I may even take a small position, because I think that it can run from $7 to $10, realistically. If Oil drops you need a stop because ...
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If Oil drops you need a stop because ...some of these follow Oil up and down. This actually looks like Oil and it looks bullish if Oil is going higher. MAYBE these are telling us that ‘Oil is going higher’ next? Smart money accumulation.
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THE USD continued to drop after the resistance was tagged, and this helped Gold. It didn’t seem to help Gold yesterday. The MACD does look bullish, but the USD has not had the strength needed to overcome resistance yet.
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GOLD dropped on Wednesday. It could be viewed as a triple top this late in a daily cycle, but the large triangular pattern still hints at a breakout soon or in the next daily cycle. Drop to the 50sma or lower trend line could take place here, with this pattern still in tact.
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SILVER held up a little better, but it is day 21 today. We have seen some of our daily cycles shorten to 25 or 27 days, so even though Silver can surge higher at any given time, I keep 2 things in mind:
1. A dip may come before the next push higher. Gold seems to be indicating that.
2. Silver stocks are not acting fantastically when Silver was up. This was a 6 day move higher, EXK, FSM, HL, CDE, AG, etc do look good, but not fantastic.
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GDX followed Gold and dipped a bit lower. The Miners now look to be in a box consolidation with that reversal. It can still breakout if Gold does, but it may now move back to the 50sma as the timing for a dcl approaches. THIS IS NOT BEARISH, LET ME EXPLAIN…
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So it’s not bearish, but what I’m saying is that GDX could be in a box consolidation that continues for this daily cycle. We would see a drop, pop, and drop 1 more time for the next dcl, to get us closer to day 30ish.
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GOLD live shot at 5:30 am, we now have a second day down if this doesn’t reverse with the PMI Numbers, but at this point it isn’t ruining this triangle. A drop to $3300 is slightly under the 50sma, but is roughly at that yellow trendline that I drew, so we’ll see what happens. Again, this daily cycle could be a sideways churn before the next run, as mentioned with GDX
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The Bulls remain in control with buy the dip action and other areas rallying. Flip on CNBC at 8:30 and 9:45 am et, if you wish to follow the data release and market reaction.
Enjoy your Thursday trading.
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~ALEX
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BITCOIN; For a while I have been mentioning that Bitcoin often falls back to the 20 ema when it rallies and gets extended. I used this chart on July 17 to show that we may see price move to the 20ema and then rally higher.
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I posted this on July 19 mentioning past targets and also noticing that we may get a triangle or pennant near that 20ema.
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BITCOIN 5:30 a.m.:
I think we may have reached our goal. Bitcoin has moved over to the 20 ema as I had anticipated a while ago. This now resembles a bull flag consolidation, so that means that if this will remain bullish, it will likely push higher soon. Hoping for a blast to $130.000-$140,000 next.
Yesterday I mentioned that I really do like this set up and that BITCOIN looks very good.
Crypto stocks are not quite ‘On Fire’ like we’ve seen in the past, but they are trending higher.
THIS IS FROM YESTERDAYS REPORT:
Crypto stocks are trending higher. Yes, they are choppy and difficult at times, because they can drop 5-7% in a day, but the climb seems to be in sync with Bitcoin now.
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WULF reversed right at the 200sma, so I pointed that out in the comments as a BUY.
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WULF continued higher and closed up 5.41%.
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BTDR is another that is choppy, but making progress. The down days can be rough, but this move was $10.50 to $15 from the June lows to now. So…
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So as long as Bitcoin looks to be making progress or looks ready to continue higher, these will likely move along with it. Some have already been rocket ships (IREN, CIFR, etc) and others are still near support, as we saw with WULF at the 200sma, BTDR at the 50 & 200sma this week. That means that they can be traded or placed in a buy and hold.
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HUT is another example of choppy, difficult, but higher over time. This has been rough, especially with Bitcoin being so choppy, so it’s not for everyone. That said, if you like this sector, it still looks like Bitcoin wants to move higher again.
