Tuesday December 23rd
SPX – After being pressed down into a half cycle low, The Markets picked up where they left off on Friday, which was in rally mode. That half cycle low was on day 17 and since many stocks rallied sharply out of the ICL, we could see the same here. The SPX is almost back at
the highs…
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THE NASDAQ is not at the highs yet, but we do seem to be forming a bullish triangle. I want to discuss a few stocks…
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I mentioned that LAES is lagging, but it has had some strong rallies too. This could run up 100% or more if the markets remain bullish.
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LAES was up 13% yesterday in the morning. It DID sell down by the close, and was only up 6%, but I still like the potential and bullish set up. It sold off at the close, but that allows an entry if you missed it.
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I said:
QBTS was up 7.75% on Friday, and when these get running, they can really tack on the gains. So again, if the markets remain bullish these should do very well.
QBTS was up 19% on Monday! It broke above the 50sma in very bullish manner. Other Quants mentioned were also up double digit %-Gains.
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I also mentioned that RGTI was up 4% Friday, but I called it ‘lagging’ due to its potential.
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RGTI popped up 13%. These are big gains over time. The dips can be painful if it drops 5% or so , but if the markets remain bullish, these can double or triple.
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I also discussed AAOI & RKLB as favorites of mine in recent reports. Why? They have been big gainers out of the April ICL and This ICL. I said that AAOI already doubled out of the November ICL. AAOI was up 12% by 10a.m.
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AAOI closed up 25%!
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PONY is also a good buy, because they already released earnings and did well. It hugged the 50sma during the recent sell off, so I do think that this will return to the highs over time.
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The General Markets continued higher and with a bullish set up in play, we should be able to ‘Buy & Hold’ or day trade. Buying the dips will be in play too (or laggers).
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MINER: I just want to mention something here. Gold and especially Silver are very bullish, but the Miners seem to be lacking steady buying, in my opinion. Yes, I see the occasional POP of 10-20% on news, but across my watchlists of Gold, Silver, Juniors, explorers, etc , I keep seeing Pop and drop repeatedly. It’s just something to keep an eye on, miners are not bearish at all. In my opinion, when Silver surges the way that it has, day after day after day, silver stocks should be up 7-10% or more. I’m seeing 2% days and 4% days. I’m even seeing pop and drop to red. Miners usually exaggerate the move of the Metals higher, so it is a bit disappointing, hopefully it will change. It can change over time. I’ll discuss that a bit more below…
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GOLD surged and broke out yesterday, and this is a very bullish looking cup-like set up. Again, I would expect to see Gold stocks like IAG, EGO, KGC, NG, NGD up 8-10% or more with a Gold Breakout. Instead, they popped and dropped…
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PLATINUM is also ramping up higher, with 8 straight days up.
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PLG I would have expected more out of Platinum group Metals (SPPP is following Platinum, but may be a tad extended ).
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SILVER is simply on a tear! It has been ripping higher relentlessly. This is as of 6 am Tuesday morning, so Silver is up again. Normally if Silver broke out and ripped out of a cup like this, miners would be doing the same, locking in 10% gains in a single day…
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EXK popped and dropped? This really should have been up 10%, in my opinion, with Silvers move yesterday. Silver is rallying out of that cup, Miners are not (yet).
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FSM gave us a doji of indecision? Up 3%. It had an ‘Up 10% day & solid rally in November, but as Silver rallied straight up, these formed cup handles.
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AG popped and dropped too? If you hold a basket of Miners…
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MINERS ARE STILL BULLISH: Don’t get me wrong, if you hold a basket of Miners, you are doing well. My only concern is that Silver may be going parabolic, and if it is, it will top and drop SHARPLY one day. What will these Miners do if we have a Silver down day down $5 or so on a Sunday night? I’d love to see them pack on the gains now to cushion that kind of a dip.
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GDX looks to be on day 10 and it gapped up, ran higher, and then sold off. The gap may or may not need to fill. This is bullish and it is a choppy path higher. It could do this…
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GDX: It is very possible that Buyers will step in and cause Miners to Gap, Gap, Gap. That often leaves many behind, and then they start to see the bullishness and buy in too, driving it even higher. That could look like this and if Gold and Silver are up each morning, we would get that gap, gap, gap.
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Gold Miners like KGC, AEM, AU, NG, EGO, NGD, etc also left behind a doji after gapping higher and then selling off by the close. This was with Gold breaking out! KGC was up 2.6% on a day when I would have guessed that we’d see it up 7% or more.
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KUYAF: Again, some Miners are putting in very strong moves, like Kuya Silver yesterday. This is what I would expect from AG, EXK, SVM, etc too.
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The Bulls are back in control. The half cycle low developed last week and we saw a rally start on Friday and continue on Monday, with some stocks making BIG gains. The Gold and Silver bull are also still running, and Silver is running Very Strongly. The basket of Miners is just fine, we can gain 2-5% day after day and make good money, but with Silver looking parabolic, I just hope that buyers flood into those Silver stocks before the music stops. So far, we are seeing great markets over the past couple of days and on a holiday shortened week, that can continue. Enjoy your Tuesday trading!
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~ALEX
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BITCOIN LIVE 7 a.m. ET –
This is now day 29 and we have no real upward progress being made here. We had a ‘Pop and Drop’ in Bitcoin yesterday, and many crypto stocks did the same. Several rallied up 4-8% and then sold off. RIOT, IREN, WULF, GDXX, etc actually closed red. The MACD does look divergent, so we can move higher.
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In the weekend report I drew up this possibility:
BITCOIN – So maybe we’ll see something like this in the 2nd half of the 60 day cycle, now that the general markets seem ready to run higher too?
