Friday December 12th – The Happy Dance
We had bullish moves out of the lows after rumors of a rate cut increased in December. Things really did start to look bullish again. Now that we have that rate cut in place, we saw follow through in many sectors, so it looks like we will rally into the end of 2025 and on into 2026 with the general markets and precious metals. We should be looking at an ICL now that we are breaking downtrends and breaking out to new highs too. Stocks sold off harshly, so the recovery can be very rewarding. Let’s go to the charts…
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SPX – The general markets gapped down and sold off sharply on Thursday, but they reversed at support and rallied back. That was a buying opportunity, and I was pointing out some good-looking charts in the morning, however Silver and Gold did not sell off, and they looked great all day.
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The NASDAQ and tech stocks sold off sharply, but started to find buyers at support.
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THE IWM & SOXX were the stronger area again, and the IWM is making new all-time highs on day 14. I WILL HAVE SOME STOCKS AT THE END OF THIS REPORT.
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I WILL COVER VARIOUS STOCKS AT THE END OF THIS REPORT.
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THE USD was rejected at the 20ema /50 sma & 200 sma. This was expected with the rate cut. So the USD started to show signs of strength when the rumor was that we wouldn’t see any more rate cuts in 2025, and when that changed 2 weeks ago, the USD weakened.
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USD – So this is most likely what we could see heading into 2026, this would be daily cycles making lower highs again…and THIS is helping the Precious Metals area too.
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GOLD looks great after that rate cut, and some Gold Stocks look even better than gold. You should see EGO as an example. Ok, I’ll show you, so take a good look at the cup with Gold…
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EGO broke from its’ cup and is running straight upward. Others (like IAG, KGC, etc) may do the same as they play catch up.
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SILVER added more gains on the day after the Rate cut too. Silver stocks gapped open, dropped and closed those gaps (as a buy opportunity) and made some very nice gains again.
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GDX was up 3.5%
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KGC is a cup or pan with a handle that dipped to the 20ema and reversed higher, so I pointed that out at 10:30 am.
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KGC rallied higher and then sold off a little, so it is still a buy as a cup & handle breaking out, especially if it dips again.
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PLG was in the reports at the red 50sma as it crawled along. It was up almost 12% midday, so I posted this chart. It DID DROP on the Fed Day, and it has been choppy, but the Precious metals can be viewed as buy and hold and you’d catch some good days as it runs higher.
Moved up to the 50sma and was up 4% when I grabbed this chart as a buy. It then rallied up 10% and closed up 8.24%
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Now let’s just look at some charts from a variety of sectors. As we do, I just want to mention that we bottomed recently after a November sell off and it was a ‘buy and see what we get ‘. Now we have the Fed Mtg aside and it looks like we’ll rally into the end of the year and likely on into 2026, so you can continue to buy and hold–or you can find ‘set ups’ and buy too. I will have both in my reprts.
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FOR EXAMPLE:
BBAI is an ‘AI’ stock that has made strong gains during bullish times, and at this point, it moved off of the 200sma as a buy at the dcl/ICL, and now it also reversed at the 20 ema a few times. This set up is a ‘trade to former highs’ buy or ‘buy & hold’ with a stop near $6.40
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FCEL is still acting correctly as it skims across the 50sma.
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ONDS sold off yesterday and then reversed at the 20ema, and take a look at how price acted with the 20 ema in the 2025 rally. We are seeing a repeat of that now, and I have pointed this one out already due to that. It can be choppy, but it is starting to respect the 20ema again. This was a $1 to $12 this year, and THAT kind of a run can continue.
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I have discussed ‘My little PONY‘ out of the lows too, because they released earnings right as it moved out of those lows and it has remained a bullish set up ever since. It is also in the ‘AI‘ sector and it also did very well in early 2025. At the APRIL ICL it was a $4 stock, and then it ran into the $20’s. It closed up 3% yesterday and is still a buy right here. AI stocks like BBAI, SES, AI, DVLT, etc will no doubt be in the future reports.
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I pointed out RR at the 200sma and then again yesterday when it dropped and reversed at the 20ema. This chart was captured an hour into trading. It closed up near 13%, so these former runners can really do well for us again, I will continue to put them in the reports (RR = Robotics, and we also had RBOT, KITT, ARBE, IRBT, KSCP, SERV, etc will be in the reports).
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SERV (Robotics) rallied sharply out of the recent dcl/ ICL and then pulled back to the 20ema, where it reversed yesterday as a buy again. Yesterday it sold off sharply, reversed at support as a buy, and then it was only up 2% midday. That makes these easy to enter after the dips at support. It closed up 5%, but if you entered near that 20ema, your gains were bigger.
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SIVA pointed out last night that MJ Stocks absolutely exploded last night. Thanks for the early ‘heads up’ Siva. I sold my TLRY this week before the fed Mtg and didn’t buy it back. TLRY was up 35%, MSOS was up 42%, MSOX up 84%, ACB & CGC were up 30%+, and many others were up 15-20% . The reason for the MJ Explosion was this news headline. I may look for pull backs going forward or laggers. This is a BIG knee jerk reaction, so sellers may take profit quickly, we’ll see.
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The bulls are back in control and both the General Markets and the Precious Metals sectors look ready for that so called’ Santa Rally’ or rally into the year end. We are in a buy the dips environment. Enjoy your Friday trading!
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~ALEX
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BITCOIN has not changed and it hasn’t really showed any signs of strength despite the Bullishness that we have seen with the General Markets and the Precious Metals sectors. Miners like WULF, IREN, HUT, CIFR, CLSK, etc dropped and started to recover too, but this is a sector that still seems to have sellers, so caution is warranted.
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As mentioned:
Miners like CLSK, WULF, IREN, HUT, CIFR, etc dropped and started to recover too, and stocks like CLSK do look bullish. This may rally with the general markets, but this is a sector that still seems to have sellers, so caution is warranted.
