July 3rd – 1/2 day Of Trading
As I sat on the plane returning from my trip yesterday, I thought of the Chartfreak Readers while having a beverage & some Crackers 🙂 I noticed that Gold was selling off, but Miners seemed to be holding up fairly well, and I wondered if that would continue through out the rest of the day.
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We’ll discuss Precious Metals after a quick review of the markets and a friendly reminder that TODAYS TRADING CLOSES AT 1 P.M. IN THE U.S.
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SPX WEEKLY reminder from the weekend report – The weekly charts looked a bit ‘weak’ on the DJIA & the SPX was a bit overbought and I am thinking that we will be dropping into an ICL into the next daily cycle, so…
SPX – The SPX recovered the 50sma, it may have its dcl, but I do not really expect a very strong rally from here.
NASDAQ– The NASDAQ was strong & very R.T., so I do expect that it could make new highs, but we’ll see what happens after that. It is also due for a drop into an ICL too. The NASDAQ can drop fast in just a couple of weeks too. See March to April.
WTIC – oil has been strong, but I just have a feeling that it is going to pull back, because…
XLE – The XLE has not been confirming that move by Oil to new highs. In fact, The XLE broke out above the 50sma & trend line, and closed below both yesterday while Oil was still at new highs. This has persisted and so it makes me cautious with Energy for now.
USD – The USD looks to be forming a bearish rising wedge and is losing momentum.
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GOLD
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GOLD #1– GOLD dropped $12 and made a new low on day 29. On my ride home Monday I started thinking of how this daily cycle peaked on day 17, so for it to become a left translated daily cycle, it has to bottom on day 34 or later. I do not know if that is absolutely necessary here or not. Does that mean we drop $12 for the next 5 days? No. See the chart1 & 2 …
GOLD #2 – GOLD could bounce around and then drop on day 34 before taking off higher. Again, I don’t know if this has to become L.T., it could just take off higher, but I can say for a certainty that most final daily cycles are left translated and they look like a dreadful drop.
We do have what looks like a steep dreadful ICL drop since April, right?
SILVER – And Silver also broke down and is nearing December lows. What about our Miners?
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DID THE MINERS CRASH DOWN WITH GOLD DOWN ANOTHER $12 & SILVER DOWN 2.24%?
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GDX – GDX & GDXJ did not break to new lows. They are showing unusual resilience with the metals dropping off. If Gold did drop into day 24, Miners could drop ( Like Silver did), but let’s take a look at a few individual Miners…
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Let’s look at a few Miners…
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FSM – This does NOT look like Gold & Silver dropped shrply. FSM actually dropped and then recovered the 50sma yesterday
AXU – Look at this junior Silver stock. It has moved from $1.25 to $1.40 in 3 days while Silver sells off.
GSS – Gold has dropped for almost 12 days straight and $12 alone yesterday and GSS is regaining the moving averages after consolidating Aprils gains.
HMY IN MID JUNE- looked set up to break out of a falling wedge with capitulation lows.
HMY – It broke out, back tested that break out, and moved higher with Gold down $12 Monday. Even the MACD remained bullish on the back test.
MUX – Gold was down $12, MUX ignored the selling.
TRX – I pointed out TRX on June 29, as it breaks from a descending wedge too. I mentioned that I own it now and also that TRX had actually moved up almost 200% since the Dec 2017 Lows, before consolidating those gains.
TRX – It also continued higher with Gold down $12 Monday. The MACD is now crossing higher too.
So we see that the Precious Metals sector remains rather Mixed. We have plenty of Miners showing strength, while the Metals continue to drop and GOLD found a new low. Gold is right down at the Dec ICL area. Most would expect a ‘stop run’ at these lows, and a weak volume holiday day of trade would be an EASY day to Push the metal around. Let’s see what Gold does on this 1/2 day of trading in the U.S., before the markets take a full day off on a holiday Wednesday. So far, The Miners have been acting with rare bullish strength, resisting the crash down of Gold into its ICL. Any dip that they do make would be short lived based on the timing of this ICL drop and he type of rally that they produce.
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Have a great day!
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~ALEX
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As mentioned, we only have a 1/2 day of trading Tuesday and then Wednesday the markets are closed, so I am not going to make this a 50 chart report, but if you are an active trader, you may also want to look at some of the other sectors for trading.
The Medical Marijuana stocks sold off and several have since recovered like CRON, CGC, ACBFF, MEDFF, and more.
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CRON – I actually sold my CRON at the break of the 50sma, and it landed on the trend line & recovered. This looks to be fine or even bullish again.
THE URANIUM SECTOR WAS MENTIONED WEEKS AGO, BUT MOST OF THEM HAVE CONTINUED TO CONSOLIDATE.
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UUUU– 1 month ago, When UUUU was at $2, I was pointing out the bullish set up in Uranium stocks. I started with the following 2 charts
UUUU– UUUU was breaking higher.
UUUU– It has had a nice burst higher, and a few of the others are starting to turn up too. I think this one may pull back, so it could be a buy if it drops & then reverses at one of the supports of the moving averages.
DNN – After a small reversal on Friday, we had a large surge on Monday. It is possible that others will join in. Watch UUUU, CCJ, DNN, UEC, URG, URA, etc.
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* And for the fast traders interested in that Blockchain/ Crypto sector that we were trading, you can look up GBTC ( up 20% Monday), GROW ( up 12%) , MGTI ( up 8%), BTSC & BTCS ( Up 10 & 14%), HVBTF ( Up 10.5%), and others on your list. Most on my check list seemed to have popped on Monday. THESE ARE EXTREMELY FAST IN BOTH DIRECTIONS, so please be careful, they may NOT be good for some readers style of trading.
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FOR THE PATIENT ONES : GOLDs RALLY OUT OF ICLs – This is just a reminder from the weekend report that when Gold does finally rally out of an ICL, it can leave the sell off behind rather quickly & convincingly. I do not expect this upcoming rally to be anything less.
