Friday December 26th – Still Standing

The markets traded for only half a day on Wednesday, and then they were closed on Thursday, and no on Friday there is no economic data to be released. On Wednesday nothing changed, the markets pushed higher and the bullish sectors continued to make new highs, so let’s just take a quick look as a review. Friday may continue to see things floating higher.

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As you can see, The SPX broke to new all-time highs on Wednesday’s half day of trading. The Bulls have assumed control again, and a ‘Santa Rally’ can last into the next year.

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Several of my favorites like RKLB, AAOI, TSEM, MU, etc have been running, so I wanted to look at a few bullish set ups that could be considered ‘laggers’. Here you see that AAOI is an overachiever and as a ‘Buy & Hold’ stock, it has already made Great gains! Over 100% from the ICL.

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So ‘AI’ stocks have lagged a bit, but what I like about PONY is that when they released earnings, it then churned sideways and did NOT dip hardly at all when that half cycle low came along. THAT makes me think that PONY will break that red 50sma and move higher.

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RR – Some of the Robotics stocks have lagged, but RR was up 8% on Wednesday, so I have to wonder if it is going to get moving soon too. Please read the chart though.

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NOTE: Let me show you something with the MJ Sector:

The MJ stocks exploded higher recently with the hint that Trump would declassify them. When he did sign that decree, they sold off again.

So we see that CGC popped up over 100%, but has now attempted to fill that gap and is on the 50 & 200sma, so this MIGHT be a resting place at support buy. These move fast though, and can break down. You could buy with a stop, and…

TLRY doubled in a few days too, but it is now also dropping quickly and could have further to go.  THIS IS WHY I NEVER RECOMMEND CHASING BULLISH POPS ON NEWS. The pullbacks can erase gains and turn them into losses. However…

However, you can see that VFF was already bullishly moving higher before that Trump news, right? And now it has returned to support at the 50sma, filling a gap and reversing at support, so I view this set up as bullish.  Since it reversed at support and filled that gap, it can be a buy with a stop there. Note: This has always been choppy though.

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GOLD broke out and ended the day with a doji, but this is a bullish breakout and it CAN just continue running, similar to Silver lately.

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SILVER is running strong along that 8 ema, so I am still thinking that this can become parabolic and give a blow off top. Silver used to move up 30cents to 50 cents a day, it is now up $1-$2 or more per day on many days.

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GDX – Sadly, the Miners are just chopping higher. Buy & Hold has been ‘ok’ over time, and gains are coming in, but when you look at Silvers run and see Gold breaking out again? Well, the expectation was that Miners would exaggerate the move higher.  THAT CAN STILL HAPPEN – they can play catch up very quickly with 7-10% or more gains day after day, but so far, we aren’t seeing that.

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GDX seems to have a day 29 dcl and that would make us on day 12, so there is time to ramp up if it’s going to happen.

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7 a.m. update:

Whoa! Silver was up around $3 and tagged $75.60! This is a runaway move, and you can’t help but to look at this run and be disappointed in EXK, CDE, FSM, etc.  Hopefully with Silver at $75 they just kick it into gear.

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The Bulls remain firmly in control.

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~ALEX

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BITCOIN broke a downtrend and can push higher to or even above the 50sma. Originally, I was calling for a run to the 50sma, but it was up at $105,000 at that time. It has been rapidly sinking and is only at $91,000, but I do think that Bitcoin can get higher than $91,000, so this can still break out and run, but time is running out, especially since this trades over the weekend. A quick rally to the 200sma is possible, but then I think we will see it drop.