Tuesday July 8th

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SPX – The markets dipped and bounced back a little. We have to remember that we will be coming due for a dcl at any time, but these are healthy dips.

1. Notice that the first 1/2 cycle low was …at the 20 ema.

2. Next the dcl was…at the 20 ema.

3. Then we had another 1/2 cycle low…at the 20ema. These are all mild dips.

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THE USD is in a downward sloping channel, but I do see pretty strong divergence at the newer lows. That said, this should still be in a failed daily cycle and the bounce really should roll over (possibly after a tag of the upper trendline). Will a USD bounce affect Gold?  Maybe, but they have moved higher together in December 2024.

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GOLD – Well, Gold looks ready to push higher out of a dcl, but as I have repeatedly mentioned lately, it could just remain as a choppier daily cycle that runs to the highs and chops lower again. We saw that with Bitcoin when the MACD was weak, and now we have a weak MACD with Gold. I do like that Gold fell to the blue trendline and reversed, broke through the Magenta trendline, dropped and back tested it too. Gold is still acting correctly and…

The good news? As Gold chops at the midpoint, some Gold Miners are pushing to their recent higher. Miners may outperform the Metal. 

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SILVER is chopping sideways, but it is back up at the recent highs. Also it didn’t drop much lower at the dcl, so Silver seems to be acting stronger than usual. That is different from the way that Silver used to crash down into a low. Silver looks good and should be on day 8.

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GDX lost the 50sma at the last 2 dcls (it did ‘shakeouts’). This time it held up better, since it bounced off of the 50sma and broke a downtrend line too. It dropped and back tested the magenta trendline on Monday, but buyers stepped in and it closed Green. Some Miners are outperforming the metals and that is encouraging (Surprises to the upside, like NAK. NAK was up almost 30% on good news pertaining to the EPA).

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So on Monday I was watching everything on intraday charts and started to notice that all of the Silver Miners were rising up out of the slam down lows at the open, and with decent volume. I mentioned it here at 10 a.m….

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And I mentioned it there at 10 a.m, because this was what I was seeing after the slam down open in all of the Silver Miners. The Green arrow was the buy, using a stop just in case it sold off later.

CDE – Notice the reversal & run higher, and we’ll look at a daily chart too.

EXK – reversal and run higher

 

CDE was reversing at 10 a.m. (As you saw on the intraday chart) , so I posted this reversal too, at 10 a.m..

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CDE closed up 4%, so buying there gave you 4%, but there is a good chance that these move higher this week too.

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EXK – And that reversal that we saw intraday after the slam down for EXK? This is the daily chart of a false slam down and recovery.

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I have been posting charts of ASM and NGD for a couple of weeks, because they had a solid run and now they hardly sell off. ASM is back at the highs and was up 5.29% heading into the final hour and closed a little higher than this.  IN FACT, let’s look at NGD…

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NGD held the 20 ema, formed a bullish megaphone, and hardly pulled back at all. It’s a very nice chart as long as they don’t mess it up with an Offering or some other price dropping news.

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I looked at KGC, IAG, EGO, BTG, AU, AEM, BTG, MUX, GORO, etc etc.  The Miners look very bullish, so even if Gold chops around a bit, these Miners may outperform. Afterall, didn’t we just see Crypto miners start to move when Bitcoin chopped sideways? We did.

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KGC is a bullish rising wedge that we would expect to break to the upside.

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Well, the Bulls are still in control, but there will still be choppiness and the normal dips that can lead into the dcls when the ‘time’ is right. Enjoy your Tuesday trading!

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~ALEX

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Bitcoin – As discussed in prior reports, the overall short term set up for Bitcoin is bullish and the Cypto stocks started to try to break higher and lead the way. Monday was basically more choppiness for both Bitcoin and the Miners. This is a live 7 am capture of Bitcoin and it is trying to move higher again.