Wednesday September 24th – Just Another Pause?

‘New home sales’ data is released at 10 a.m., but overall, there is no real important market moving data at 8:30 or throughout the day.

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SPX – We actually saw a new high on Tuesday, but we also then saw a little drop on what is day 36 out of the dcl. A dcl drop can start at any time with the timing this late, but so far we’ve only seen a 1 or 2 day ‘pause’ or dip here and there since day 21. Was this just another 1 day pause? We shall soon see.

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If we start a dip into a dcl, some of our set ups in the stocks may stall and chop until a dcl is formed, but for now I do still see some bullish looking set ups.

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DNA was a buy at the 200sma and now it is breaking out from the downtrend. This is biotech so it might even continue higher if the markets dip into a dcl.

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QS was pointed out as a ‘buy’ near the lows and I just wanted to show how it did as expected. It was expected to try to climb back up to former highs. Now it might chop sideways and form a handle on this cup, but the reason that I wanted to show you this was because it looks like another trade that we have (JOBY)…

 

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AVIATION IS MOVING:

JOBY was pointed out as a buy lower too, and it is also expected to return to the highs like QS has. That is still a great trade, especially if it dips on Wednesday like it did on Monday. JOBY is Aviation, and that sector seems to be perking up…

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ACHR is Aviation and it is starting to make a move out of the lows. This was a buy at $9, but it could also be bought here as it crosses the 50sma. Similar to JOBY, we’d like to see this return to former highs.

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HOVR is Aviation and it has popped quickly back to the recent highs.

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SPCE popped yesterday (Aviation).

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RKLB was one that I repeatedly pointed out coming out of the April ICL, and again as a buy at the 50sma reversal. It was up another 6% yesterday and it is also Aviation

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SRFM – This may or may not be ready yet, but it is one on my list that I try to look at daily. It is in the aviation business too. The POP that shows up on August 13th was an earnings pop.

 

 

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THE USD is a little choppy at the lows and this was expected because of the way that it acted coming out of the past 2 lows. I would expect a pop or run at least to the red 50sma, and recently it has actually been able to get above it and chop along that 50sma.

 

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GOLD has a small topping candle, but it also had one 10 days ago and price simply chopped sideways and continued higher, so we’ll see what Gold does from here. So far it has been surprises to the upside.

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SILVER stalled too, but it is only day 4 and it can run higher to a day 7-11 peak, even if we get a L.T. daily cycle. Again, surprises have been to the upside.

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SILVER could pull back and still continue higher too. At day 4 we could get 2 down and 3 up or something like that too.

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GDX made new highs and then went red. So far GDX has bounced up and along the blue 13 sma, so a close below that might be used as a signal to us that the climb is taking a rest.

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  We saw a pause or red candles on Tuesday, but lately those are just pauses on the way higher. Timewise, we are at the point where these markets could go either way though. The General Markets could put in a 50 day daily cycle and since they’re on day 36, the could run higher for a week or more. We do also see day 40 dcls, so they could put in a mild drop too. With the precious metals, they seem to only be day 3 or 4, and yes, they could peak there, but in this strong bull they could still climb higher and still become L.T.

 The bulls are still firmly in control, though, and we do still have bullish set ups appearing in various sectors, so hopefully you can….enjoy your Wednesday trading!

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~ALEX

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BITCOIN #1 – We have a reversal, and I’d really like to see this start to move higher again. The Crypto Stocks look good and that could possibly be that they are leading the way higher, but CIFR and IREN have been running for quite a while, so it may also just be that they are showing their own strength despite the choppy price action for Bitcoin. A BIG REASON That I’d like to see this start to get back above the 50sma is…

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A BIG REASON That I’d like to see Bitcoin start to get back above the 50sma is that there is a possible H&S forming.

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BITCOIN #2 – We broke down from an uptrend, and the choppiness is starting to look like a H&S. I will say that Bitcoin does move funny at times and the choppiness and bearish looking ‘lower highs and lower lows’ can resolve itself, so we’ll wait and see. The crypto stocks do look healthy, so for now the sector is fine. The stochastics has finally reached an oversold point where lows have developed in the past.