Tuesday July 29th

I have a small surgery scheduled for Tuesday morning (Laser blasting & removal of Kidney Stones), so I won’t be around for trading.  Not much changed on Monday, but the USD did surge with trade deals and discussions taking place in the EU. Most of the stocks that I owned did dip lower, but it was minimal and then they started to bounce back.  Silver stocks also bounced off of the 20 ema, so the selling seems minimal for now.  Let’s look at the charts…

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SPX – We have 8 out of 9 green days, but they are small up days. With this price action some stocks rise and some have pulled back. I want to mention that Wednesday is a Fed Day, we might see price drift lower toward the 20 ema after that, unless he gives us rate cut promises.

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BBAI dropped but bounced at the 20 ema. It is a low risk entry for a trade, since a tight stop can be placed below that 20 ema.

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SERV (robotics) is a good-looking set up to me. That is the 200 & the 50sma. It could break out or it could dip back to the lower level, so put it on a watchlist if you are interested in buying a dip or breakout.

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RKLB dropped, but this may be a drop to support also. We’ll see if this bullish looking wegde can breakout upside or not (again, Fed is Wednesday).

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FCEL – I did not expect FCEL to lose that 50sma, so this was a sell. BLDP, PLUG, CLNE , WWR still look good, but OPPT got hit hard & dropped for 3 days with earnings, so watch for the earnings reports.

 

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WTIC – Oil was higher and remains pinched between the 50 & 200sma. I mentioned that I think Oil may want to move higher, because the Oil stocks look bullish.  Well, …

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XOP – Oil stocks do look bullish, and this is a nice-looking set up too. Check your Oil stock watchlist, to see GUSH (leveraged) VLO, NOG, VET, PUMP, APA, etc etc. as mentioned in last weeks report.

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THE USD surged and it looks like it may now put in a higher high to go along with this higher low. I have said that the MACD looks very bullish, so the USD may have some legs to run. This POP did not hurt Silver or Gold all that much.

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GOLD did drop and may be in the dip to find a dcl. I don’t want to see the magenta line broken, or we have a failed daily cycle, so I’d like to see this bounce into the Fed Wednesday period and then sell off to a low by day 25 or so. We’ll just have to wait and see, but it does look like it’ll be R.T.

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SILVER did not drop as much as you would expect with that USD surge. Silver held up on the 20 ema for now. Silver stocks also dropped and bounced off of the 20 ema.

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CDE dropped and bounced off of the 50 sma.

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EXK dropped and bounced off of the 20 ema.

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FSM dipped to the 50 sma and bounced too.

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The GDX continues to chop sideways, mimicking Gold more than Silver. It is forming a box consolidation and the dcl may come in at the lower level of this box. That would be a mild dcl if that happens.

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So far we are seeing normal market action. Some stocks are pulling back to support and others are continuing higher, but we do have a Fed Mtg Wednesday, and that could cause a quarter cycle dip to the 20ema (seems too early for a half cycle dip). Check out the oil Stocks, they suddenly look quite bullish, similar to the XOP. I will be away on Tuesday.  Enjoy your Tuesdays trading!

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~ALEX 

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BITCOIN (8:30 p.m. ET Monday): Bitcoin continues to churn sideways. I discussed cycle timing in Fridays report  and in the weekend report. Basically, this could go either way, but it does have time to run higher.