Tuesday July 15th
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SPX – Day 33 was the dcl time for the first daily cycle, and we hit day 33 on Monday. They can come at anytime, but this wedge pattern actually makes it look like we will push higher, so we may bump up higher and then do a mild dip to the 20ema as a dcl. Let’s just say that the markets are bullish, and many stocks on my watch lists still look great. From the ICL I was mentioning past performers like RKLB, LMND, AAOI, POET, ENVX, an other less known picks, as well as MSFT, GOOG, NVDA, NFLX, and so on…
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RKLB has now almost tripled out of that low (ICL) as a buy & hold, so at the next DCL or even the next ICL we can continue to enter these stocks on our watchlists. We may even find others that have developed into strong runners and buy those dips too. AAOI, my other favorite, has also tripled.
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THE USD is at the upper trendline, so maybe it will stall and Gold will move higher?
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GOLD actually made a new dc high, so we have a peak (so far) at day 9. This can still move higher, especially if the USD pulls back. The MACD has also chopped sideways and has begun to improve the MACD.
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SILVER popped and dropped so it looks like a reversal at the highs, but this does not necessarily mean that it’s a topping candle. It is day 13 as a peak for Silver so far, but this is a strong move out of a consolidation, and it can pop and chop higher if the sector remains hot. Of course, we could get a back test too, so I’ll show you both possibilities…
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SILVER This would be your normal back test and move higher into maybe day 20-25 or so.
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SILVER – This is what we see as a running correction. Price just keeps chugging higher & higher and then spikes and pulls back. I’d prefer this one, they are very easy to ride, but ‘Mr. Silver Sector’ doesn’t care what I like, so we’ll wait and see. The first run Popped, flagged, popped, flagged, etc. That was good too.
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GDX has simply become very choppy trying to mix the gains and dips of Gold and Silver stocks. It popped and dropped on Monday. A push higher in Gold would give us the break of that trendline.
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Please Note: AT the very end of this report I want to discuss stocks a bit more, so continue through the Bitcoin section to get to that part of the report:
I love the market action lately in the general markets and precious metals. Even though the ‘timing’ for the general markets puts it close to a dip into a dcl, it has remained strong and the dip may just be a mild sideways chop, or just a quick pullback when it comes. The last dcl was a 4-day dip. Bitcoin exploded higher over the weekend, but I was concerned with what I saw in the Crypto stocks last week and some of what I saw yesterday was matching my concerns. I still saw a little less enthusiastic buying when compared to what we have seen in the past, so let’s simply discuss it below. Enjoy your Tuesday trading!
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~ALEX
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1. BITCOIN -If you looked at Bitcoin heading into Monda , this is what you would have seen. A blast higher and a breakout took place last Friday bringing Bitcoin to $118,000. I Then pointed out that some crypto miners ignored that extremely bullish price action. HUT & WULF wee red for example.
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2. WITH BITCOIN RUNNING TO $118,00 at the end of last week, I pointed out this chart showing that WULF dropped 5% on Friday? HUT and a few others dropped too. Again, this was as Bitcoin broke out from a large consolidation and rocketed higher Wednesday and I wondered, “Is smart money selling into the buying?” We need more time to tell. SO with that…
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3. Now look at this again. BITCOIN ran to over $123,000, so by now we would NORMALLY see Crypto stocks up 10-16% on Friday and 15-20% Monday. Buyers used to RUSH into these stocks and push them higher. And in reality, Bitcoin just ran from $100,000 to almost $125.000, so…
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MARA did a pop and drop after a Friday lack luster move too. Bitcoin went from $110,000-$123,00 and MARA went red, so this is what I wrote in the comments yesterday after now seeing 2 days of this…
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BITCOIN put in a reversal candle and dropped to $117,000 as of last night when I captured this candle. What is next? Did we peak here? My target had been $120,000 to $135,000 for months, so this may just back test and run again. Cycle-wise, there is definitely time for Bitcoin to run higher, but a back test may take place first. If so, I’ll be looking to buy Crypto stocks again, if they act correctly (light volume selling, hold at support, etc).
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WULF lost 4% Friday, and then reversed higher 4% Monday at support of the 200sma, so again, I’m watching to see how this sector plays out. Some laggers can still outperform and play catch up. With that in mind…
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I pointed out CAN on July 2 as a nice set up and a very bullish pattern that could play catch up. I loved the volume in this pattern, please take a look at those high volume spikes, it was oversold, and it was in a wedge pattern, so buying with a stop was a good idea.
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CAN – And there we go! Can slowly moved higher and then exploded with volume that made those high volume spikes look minuscule. Congrats to buyers of CAN.
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Let’s just discuss a few other stocks
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I recommended FCEL at the 50sma and it rallied nicely. I actually had very good gains, but now I had a stop under the 50sma and I may have had it placed too tight, because FCEL dropped under the 50sma and I got stopped out at $5.15. It started to bounce back. If it recovers, I would probably rebuy it. When it ran higher it tagged the $6.35 area and I had 2000 shares, so I was up $2000, and I got stopped out for a small loss, but if this reverses higher? I can make that back and more. We’ll see.
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Now I’m also looking at this beauty. I like the crawl for WWR under this 200sma. Will it pop and run? It has been a runner in the past, so buy a breakout or buy and hold now with a stop are 2 ideas, as long as you understand that just like can, it could chop sideways for another week or 2. The way it hugs that 20 ema though, it could break out this week.
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I pointed out BBAI again, since it has now pulled back after giving us that awesome run in June-July. We bought that and it ran from $4 to $8.50. Honestly, I sold it too early, but buying here may be the right thing to do. It reversed at the 20 ema at roughly $6, so I wrote…
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BBAI: If you caught my post in the comments, you then may have entered a position and saw it run to over 7%. The former highs were $10 area, so it could run there.
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AI & SOUN: I have also mentioned that AI could be next. It was at the 50sma at $24 and is SLOWLY chopping higher to $27. I still really like this as a buy and hold. It is right at the 20ema and may continue to crawl along it.
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NUKES – I’ve been watching these after their last run too, and they finally satisfy my view of the set up.
SMR , OKLO, NNE and LTBR all dropped below the 20em, so I didn’t re-enter my positions, but they have stabilized and I posted this yesterday too, as they stayed above that 20 ema. OLO then went on to close up 11%, SMR 12% &, LTBR?
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LTBR was up 16%. These finally reached oversold again and the set up remain bullish.
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NNE- This one was also one that I traded in that sector, but it was difficult for me. It was choppy and even though the gains are very good from #18 to $40 (excellent really), for an active trader like me, it was challenging with all of the chop. That said, this is set up like it wants to run higher.
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RKLB – I wrote this yesterday about RKLB. It then closed up
As mentioned above: It closed up almost 11%
RKLB has now almost tripled out of that low (ICL) as a buy & hold, so at the next DCL or even the next ICL we can continue to enter these stocks on our watchlists. We may even find others that have developed into strong runners and buy those dips too. AAOI, my other favorite, has tripled too.
TODAY I AM WATCHING SERV, KSCP, RR, because RCAT And RBOT blasted higher from that sector yesterday.
