Tuesday July 22 – A Balanced View
The bulls are still in control, despite any choppiness that we are seeing.
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SPX – The general markets did another pop and drop, and my account went from nicely up at the open to fairly red at the close. Some of what I own (Robotics, quant stocks, Nuke stock, AI stocks) exaggerated the moves, but the charts remain bullish. I have mentioned that it is too hard to tell if that drop at the last purple arrow is a dcl following that long consolidation, but I thought of something else…
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I saw that The DOW actually does look more like visible dcl. Looking at this, I can say that it does appear that a dcl dip took place, even though the SPX & NASDAQ just travelled sideways to the 20ema. Do you remember that I pointed out the quick 4 day drop in May as the last dcl (green arrow)? These are a testimony to the markets strength lately.
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OIL surged in June with the Iran attack, it then crashed with a massive drop. Since that time Oil has chopped sideways and that may continue with Oil above the 50sma. Oil was hardly lower Monday, but the XLE & XOP dropped more sharply, so the sector ‘Might’ be getting tired in the choppiness, or are Oil Stocks just due for a dcl? Time will tell.
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THE USD dropped on Monday and Gold and Silver Popped on Monday.
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GOLD popped and I want you to note that Gold closed near the highs of the daily cycle and the highs of the day. This is now a peak on day 14 and could be R.T. if this keeps up. Again, GOLD CLOSED NEAR THE HIGHS.
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SILVER popped and almost made a new daily cycle high at day 18. SILVER CLOSED NEAR THE HIGHS.
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GDX is breaking from a downtrend and it didn’t quite stay up at the highs, but it was close. Next…
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I was surprised that many Miners popped and dropped rather than close near the highs.
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CDE gapped higher, ran up and then sold back down. It was still up 4% and that is great, but Gold and Silver closed at the highs, so this was a bit disappointing with many silver stocks.
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EGO – Many Gold stocks also popped and sold off yesterday, like EGO. Again, it was up 2.44%, but it could have been up 6%, so it has me wondering if this daily cycle will peak sooner than later. For now, I would just ride them, and hope that buyers step it up.
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HMY had a nice 7.5% gain yesterday as it breaks from a long consolidation under the 50sma. Honestly, this chart looks very good and I would expect a run to the recent highs if Gold stays bullish.
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KGC popped 5.38% to new highs, so I posted this chart at 11:20 a.m. It then became one of those Pop & Drop, so you can now buy it at the closing price of $15.92. (It is $15.80 in pre-market)
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NGD was one of my favorite Gold stocks and I mentioned it several times over the past 2 months, but I got stopped out in the $4.75 area. It has now lost the 50sma and may try to regain it (as a shakeout?). It did a pop and drop yesterday too.
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SOME MINERS HAVE SIMPLY BEEN DOING THEIR OWN THING, AND RUNNING STRONG, SO THAT SHOWS US THAT MINERS CAN GO HIGHER.
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NG showed signs of strength with strong price & volume twice, so after a sell off at the time of the Gold dcl, it has climbed higher day after day after day in this daily cycle.
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I had pointed out SA as a lagger in a nice base, and it broke out in June and it has also continued higher despite Golds choppiness. So some Miners will perform well despite the choppiness and actually some of the 5-letter runners are doing well, because they lagged or did nothing up until now
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So some of the smaller explorer/Miners will perform well despite the choppiness as some of the 5-letter runners are doing well, because they lagged or did nothing in March, April, May, etc …
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HOWEVER
As smaller companies / explorers, etc, they may have risk too, so position size may be important or own a basket of 5 or so to spread the wealth and avoid a single stock dump.
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A couple of stocks that did a pop and drop with the general markets were good set ups like FCEL, KITT, and RR.
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S0 I want to mention here that OPTT and WWR took off higher again yesterday, along with BLDP, PLUG, and other energy stocks, so I am interested in FCEL again. I posted this at 9:47 am and it DID break out swiftly above that 50sma, but it sold off again too. I still like this set up.
KITT – I still like this set up too, but this chart is from Friday. IT dropped back tot he 50sma yesterday and is around $1.04, but this chop looks constructive if we have a dcl in the general markets.
RR ran up to the resistance of the 50sma Friday, shown here. RR broke out above the 50sm and then pulled back under it yesterday, so is it ok? 
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RR broke out and then dropped again. It is, it is actually at $2.09 right now, under the 50sma, so it can continue to chop along under the 50sma and above the 200sma, or it may break out, but the set up is good.
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Enjoy your Tuesday trading!
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~ALEX
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BITCOIN looks good this morning as it chops closer to the 20ema that I have pointed out. Crypto stocks popped and dropped quite a bit yesterday, closing red, so we’ll see if they run higher with todays reversal higher.
