Wednesday September 10th
Inflation Data will be released premarket today. This data has been viewed as important as to whether or not we get a rate cut (higher inflation, possibly no cut), however the recent economic data, Jobless Claims, etc. are showing that a rate cut is needed.
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SPX – We are getting a little late in the 3rd daily cycle with day 26, but honestly we don’t know if it’s day 26 of 35 days, or day 35 of 50 days. So I drew a few ideas yesterday to cover the scenarios.
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SPX – Yesterday I mentioned the longer daily cycle idea by saying, “The markets could even rally into the Fed meeting and beyond with a 50ish day daily cycle, and then roll over into a dcl.”
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The NASDAQ actually made another all-time high, so even with wars being fought, tariffs, a bad jobs report and other economic concerns, the markets chug higher.
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I liked this RGTI (& IONQ) set up at support, so I pointed it out in the morning. These Quant stocks can make big gains, so it might be worth buying with a tight stop at support.
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RGTI continued to climb and closed up roughly 10%.
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IONQ was pushing on the upper trendline of a wedge. It’s a bullish set up…
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And IONQ closed up 7%, but it looks like it could continue higher. Someday these could run up and away from these long consolidations and we’ve seen what can happen then when we look at Gold and the Miners.
BY REQUEST:
I do still like VNET, but it has certainly been choppy too. I see that triangle and the breakout, but it didn’t run, it is back testing & choppy. I originally liked it due to the consolidation and earnings Pop (see the chart), but it just hasn’t made that run higher yet.
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GOLD popped and dropped. Is this going to drop into the Fed Mtg? Is it going to run the length of the pole leading into the triangle? It is a strong bull run out of that triangle, so we’ll just have to wait and see. Even though we see a reversal candle from Tuesday, this can continue higher as a breakout from that triangle. Dips will be buying opportunities.
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RUNNING CORRECTION: I wanted to show you a running correction. As they form, buyers keep buying the dip, so they have a hard time selling off, so they slant upward. Usually, bears lose control and…
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Then they can burst higher. this was a bit of an extreme example, maybe it had a high short count, but basically this is what I’ve seen many running corrections do-they breakout higher. Well…
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SILVER is another conundrum. We are this late in the 4th daily cycle and yet we are making a new high this week and it looks like a running correction. It’s too early to know, but if so, they often break in the direction that they are churning.
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Does anyone remember when the Miners were really frustrating and choppy for 4 months? After that sharp burst higher in April, they couldn’t gain traction…
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GDX also has a reversal candle, but GDX will likely follow Gold. If Gold continues to follow out the length of that pole (like a flag pole), Miners can continue higher. We are currently in a runaway move that only has 1 or 2 days down at a time.
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IAG – Again, Does anyone remember when the Miners were really frustrating and choppy for 4 months? Gold broke out to new all-time highs, yet the Miners just chopped sideways and couldn’t get the follow through that we were looking for, and now? Boom! They broke out and are running swiftly.
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EGO also chopped sideways and these were hard to buy and hold and enjoy them as Gold broke to new all-time highs. Now they have also started a runaway type of a move. EGO started a rally similar to GDX after forming a triangle consolidation.
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I know this sounds like a broken record, but the Bulls are running and remain in charge. We do have inflation data to be released today, but so far a rate cut is viewed as likely since the Jackson Hole speech, so the data may not be as influential as it usually is. We’ll see. Yesterday the Crypto stocks finally showed BIG gains, and this is while Bitcoin fumbled around, so I’ll discuss that below. What if they start running like IAG, EGO, etc? Let’s take a look. Enjoy your Wednesday trading.
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~ALEX
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BITCOIN dropped yesterday and surprisingly, the crypto stocks not only closed green, but many were up 10-20%!
I posted this chart of WULF because I was seeing a triangle formation, and the price was at the APEX. This would be a buy.
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WULF -Started to break out so I posted this in the morning comments too.
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WULF was up 10% by midday, but is this extended? Can it really run higher. well…
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According to The WULF BIG PICTURE, this is continuing to break from a base and it could have a lot of upside potential. I am still keeping the 4 year cycle in Bitcoin in my mind, but short term this can run higher. This looks like a large cup with a small flag or handle.
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I also used this chart for CIFRs big picture in early September, for example…
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CIFR also ran up in August while Bitcoin dropped. Yesterday Cifr was up almost 20% while Bitcoin was down. Why? This may be similar to ‘Miners leading the Metals’, and maybe the crypto stocks continue to be accumulated despite choppiness by bitcoin and Alt coins.
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IREN gapped open, but I mentioned that these often fill the gaps, so I was looking for a gap fill and reversal. IREN filled the gap within the first half hour to the high of the prior day and ran up all day…
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IREN closed up over 15% after that attempted gap fill, so you could have bought the gap fill and reversal anywhere under $28 and made great gains.
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RIOT – I’ve been covering RIOT because even though it wasn’t blasting off yet, it gave signs of accumulation, strengthening, volume swelling, etc. So last week I posted this big picture chart too, along with Daily charts.
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RIOT tagged the blue 50sma on Friday and then put in a small reversal on Monday. Tuesday it TOOK OFF with the other leading Crypto stocks, even though Bitcoin was selling off. RIOT closed up 13%
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BITF -was mentioned in my reports as bullish and possibly ready to break higher. It was up 20% Midday, and it closed up 24%. THAT is a great 1 day trade alone, but it could just keep running over time too.
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BTDR – Finally BTDR is still set up as bullish, so keep an eye on it or start a small position and add when it gets above the 200sma or downtrend of the triangle.
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I discussed how Precious Metals Miners chopped around for 4 months in a frustrating manner, but when they finally started to run—they’ve started to go vertical! Could this be what WULF, CIFR, IREN, etc do? I’d say that it is possible, especially if Bitcoin finally starts to run higher too.
