Tuesday January 6th
On Friday and in the weekend report, I pointed out that many of the stocks on our watchlists were flying, up 7-15% or so, but the NASDAQ was Red. I then showed the difference between The SPX, NASDAQ, SOX, and IWM. On Monday, we got follow through on our bullish sets up, but this time the Nasdaq joined in, so we’ll discuss that. We’ll also discuss GOLD & SILVERS upside surprise, possibly brought on after the Venezuela attack. Did the Miners burst higher? To the charts…
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The NASDAQ still has a bullish triangular formation with Fridays drop and then it was up 160 points on Monday.
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SPX: Here I am just showing the long bull run out of the ICL of April 2025, and how it had many dips along the way. That seems to be continuing on into 2026 so far, with a smaller ICL forming in Late November.
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THE IWM has 2 solid days up off of the 50 sma. I had day 18 labelled as a half cycle low, so was day 29 a dcl already? It is possible, but it is also possible to put in a 40+ day daily cycle so at this point it doesn’t matter. It was a bullish ‘buy’ with that reversal at the 50sma on Friday.
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The SOX has been strong after losing and regaining that 50sma at the ICL drop. Friday it gapped open higher and Monday it did the same. So the general markets are acting bullishly out of that ICL 2 months ago.
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Let’s take a look at some of the bullish set ups on our watchlists and I want to re-emphasize that our watch lists from last year are set up bullishly. Some of them had deeper sell offs or consolidations, but after the deep sell off, many based out or regained support areas just like the IWM, and they are making strong gains over the past couple of days out of that possible dcl. Robotics, AI, Nuclear stocks, Quants, Aviation/Aerospace, Software, Various Tech, etc look bullish.
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EVTL had that straight up rally out of the ICL. That was $3.75 to over $7.25! I pointed it out Friday and then early Monday after an hour of trading with this chart…
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EVTL: By midday it was up over 7%. It pulled back slightly and closed up 5% near $6:10, so you could still try to find an entry.
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HOVR is basing out, possibly with a double bottom at the 200sma. This rallied to $4 in October before the ICL drop, so if it does that again, you have a 100% gain from here or 200% from the Nov ICL. Monday was a 20% move through the 50sma.
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Remember Lithium Stock LAC? It ran to $10.50.
It has also been trying to base out with a double bottom in November and now. It also closed above the 50sma, so it may start to recover and try to run to former highs. I expected a tag of the 200sma, but that seems less likely at this point.
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Nuke Stocks like LEU, SMR, OKLO, etc started to Pop and they make big gains when they do. The dips can be big also, but these are set up bullishly.
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SMR popped Friday out of a bullish descending wedge. It then gapped up another 20% and closed up 15%. These are very choppy and can be difficult, but if you could buy & hold AND they run back toward prior highs, you can see what that would do. No guarantees that they will, but they could return to the highs.
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LEU is another Nuke Stock that is forming a bit of an inverse H&S pattern. Notice that the RSI did get back above that 50% line. I like that.
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Recently I wrote:
ONDS is choppy but it is a great stock that I have owned ‘buy & hold’. Excellent run this summer. It closed up 13% and is set up like it wants to break to new highs. A cup. Although choppy, it has moved from roughly $5 to $10 since the Nov ICL, and that is a 100% gain already.
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So, I called this a ‘buy and hold’ because it has a good product & business is doing well (drones), and it really ran so swiftly in 2025. Look at the ONDS chart: $2 to $12 from August to October! It is now up at the former highs and looks great. If it forms a cup handle or pulls back from here, it will be another good buying opportunity. It is up over 100% from the November ICL. Volumes are great.
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PGY – This price action in August was really choppy and difficult, but I love this chart set up too. It is new to my watchlist after doing some reading and stumbling on the company and chart while reading about companies using AI. It had strong buys in 2025, sold off sharply into the Nov ICL. It looks to be bottoming, and the MACD & RSI look bullish.
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My little PONY went from red to green yesterday, and popped 11% on Friday, so I grabbed this chart as a reminder of the bullish set up. It actually only closed up right here at the $16.50 area, but the setup is good, and earnings were favorable a month ago.
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‘AI‘ stocks on my watchlist took off yesterday (except for BBAI & AI ticker, so they may still be a buy).
SES rallied strongly in September and October, but when the ICL came due, it sold off sharply. It broke from a wedge and broke above the 50sma on Monday.
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BBAI and ‘AI’ look ready to join the party. BBAI is bouncing along the 200sma, so that could be a stop for a low risk entry.
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TMQ Popped 211% when the Trump Administration claimed to have taken a 10% stake in it due to rare metals. It then even doubled from there and then steadily sold off. It is now in a fairly tight move over the 50sma and I think it is a good buy (rare earth metals). The sector, which includes UAMY, AREC, REEMF, NB, and other rare earth metals miners are doing well, as seen in past reports.
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Please see the end of the weekend report too, for reminders on other stocks picks.
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THE USD was rejected at the 200sma so far.
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In the weekend report I pointed out the large drops in Gold and Silver last week, along with their parabolic runs. When the U.S. Government went into Venezuela, Gold and silver Popped in a big way, so let’s discuss that.
I said this about GOLD in the weekend report:
That blue 20 week ma has held price faithfully since 2023, so a break of that will be a warning sign in my opinion. Warning of what??…
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GOLD then shot up on Monday over $100. What do I make of this? Well, we were on the 2nd daily cycle, so this could be a dcl and now we’ll see what kind of strength it does or does not have going forward. Miners like KGC, IAG, etc did not follow this move (I’ll show that soon).
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For the Weekend report, I wrote this pertaining to Silver:
The Month of December ended:
That candle in the circle is a bearish shooting star, and that usually signals the top of a run. I will point out that we have seen a couple of these hammer type candles on this run that simply saw price only go sideways, but with a parabolic run like this, and with Silvers similar look, it may be time for a real pullback/correction.
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SILVER popped on Sunday night into Minday, and then when I grabbed this chart on Monday night, it was continuing higher. So after the cup low, we saw a dcl form in that 5 day handle. Now we have a day 19 low (possible dcl?) and Silver ran on the Venezuela event. It looks very bullish, but the Miners really struggled to follow, so it may double top. We’ll see…
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GDX – So you can see that with Gold up over $100 and Silver surging again, the Miners are fairly casual about the move. GDX, GDXJ, and SILJ all did a pop and drop so far. We still have our channel higher, so the trend remains up despite the somewhat lackluster reaction to stronger moves in the metals.
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AG was running higher by 9%, so I grabbed this chart. AG, EXK, HL, etc were up considerably in the morning.
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AG sold off and closed up with a pop and drop and a 5% gain, so this is disappointing, but if you are holding any Miners it helped to erase Fridays losses.
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APOGF went green to red, and I found a few others that did that too, despite a strong push higher in Silver and Gold. It held the 20ema though, Friday and Monday.
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IAG Popped and dropped too. It was only up 1% midday with Gold running strong, so this is cautious price action during a strong metals rally. IAG actually sold off further and closed up less than 1%, up 10 cents.
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KGC popped to new highs and then profit taking took over. Gold was up over $100, KGC was up 2.9% when we would expect a 9% gain.
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The Bulls have maintained control and many stocks have had great moves over the last couple of days. The moves won’t be straight up, but the overall picture in many of the stocks on my watchlist are bullishly aligned. Bitcoin finally started to push higher and this time Crypto stocks tacked on some gains too. Enjoy your Tuesday trading!
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~ALEX
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BITCOIN IN THE WEEKEND REPORT:
I’ve been expecting a possible run to that overhead 200sma, but I do not expect much more than that. On the weekly chart it was a possible run to the 30 week ma.
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BITCOIN started to move higher this weekend, and it may run up to the 200sma. Crypto stocks like IREN, WULF, CLSK, RIOT, MARA, etc put in various gains. Some popped and dropped and were only up 3%, others put in 8-12%. They could be good short-term trades, but I am happy to trade elsewhere for now. If you trade this sector, use stops and maybe scale out slowly as Bitcoin approaches that 200sma. Also keep in mind that it Might not get that far–we’ll see.
