July 5th, 2023 – F.O.M.C. MINUTES
In the U.S. Markets, we only had a 1/2 day of trading on Monday and the markets were closed on Tuesday and therefore nothing has really changed from the time of the weekend report. With that in mind, I wasn’t going to have a report today, but then I decided to do a report as a reminder that today is the release of the Fed Minutes. Normally that is a market mover, but lately the Fed, Jobless Claims, and other data has been bullish for the Markets.
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Now with that reminder for later today, let’s just take a look several charts…
On Friday I pointed out Golds daily reversal this way:
GOLD dropped and put in a reversal candle with that push higher in the USD. Gold is not dropping the way one would expect with the USD rising. Notice the lower trend line too. And I have always mentioned that You can buy these reversals at support, raise stops along the way, and see how it plays out.
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FOR GDX I SAID IN THE WEEKEND REPORT:
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To be honest, The GDX ETF looks bullish. It reversed right at the 50week ma, a trend line, and the RSI is only slightly below the 50% mark. I have always said that you can buy these reversals and use a stop right under the lows, and see how it plays out. The real challenge will be when it gets to the red 10 weekly sma.
I pointed out that divergence is showing up on many silver stocks like EXK, and this is EXK after Mondays trading.
MUX has had 2 very strong runs from the October lows and march lows. I wrote $3 to $8, but that is really $7.50. So MUX ran from $3 to $10 so far, and now it has pulled back to under $7. Watch that downtrend line and the 50 sma, especially if you bought the reversal.
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You may recall that during the run out of the lows of October and March, I was pointing out Miners like OR, MUX, HMY, AU, GFI, DRD, AEM, etc as strong leaders. They have been pulling back, so these may become nice ‘buy the dip’ candidates after an ICL is in place. You also may have bought the recent reversals to see how the Miners will play out. Let’s take another look at OR.
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OR– Osiski Gold ran from $9 to $18 so far in 2023. After a dip below $15, it is now breaking from a wedge. It actually looks very bullish, so we’ll see if it can regain the 50sma or not, but I would raise my stop to the wedge break out day.
A while back (With Crypto stocks) I discussed the look of ‘Running Corrections’ taking place. They can run up tightly and often suddenly POP higher and then pull back. It should be noted that they don’t always POP, so you raise stops along the way.
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I showed HIVE as a running correction and you can see that the run higher continued since then. It is getting ‘toppy’ with that RSI reading, so this will be a BUY THE DIP candidate later. For now I’d raise my stops or sell some and let some ride.
Also, do you remember when I pointed to MARAs break out and run and said that RIOT was a similar set up, but it was lagging and was right at the 50sma , as seen here? That means that I was expecting RIOT to Pop like MARA, so it was a buy under the 50sma.
Well RIOT is above the 50sma and then it popped 14% on Monday, so if you bought it under that 50sma, you are doing well.
MARA continued higher and is also looks like a running correction now. This could be getting a bit toppy too, since it has run from the buy area around $9 or $10 to over $15.50. These will likely do whatever Bitcoin does.
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CLEAN ENERGY AND EV HAS BEEN POINTED OUT AS BASES & BREAK OUTS: See CLNE, CBAT, XPEV, PPSI.
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PPSI– Well this is obviously one of the exceptional leaders, but I just wanted to show the run from $2.50 to $9.50. BIG GAINS. Are the others going to start to follow for the second half of 2023?
XPEV also broke from a base and ran from $8 to $15, so if it pulls back as a back test, you could buy that dip. I do like these set ups in the sector remains bullish. Let’s look at some laggers…
LCID sold off and did a shake out and then it suddenly started to steadily climb higher with a nice increase in volume. I think that you may be able to ‘buy and hold’ these as they break above the 50sma. Use a stop.
WWR is forming a large wedge-like pattern. A break out puts it above the 50sma, so this is a sector that I am interested again, for now. 
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Along with that , the EV Sector is running. Leaders could be NKLA, NIO, SOLO. So I pointed out NKLA as a buy if it drops to the 50sma…
NKLA was a buy if it dropped to the 50sma, but when the General Market dcl formed, NKLA reversed early and pushed higher from there. NIO did also, so…
WKHS, FSR, AYRO, and others are lagging, but they do have nice set ups that could join the run.
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Like I said, I wasn’t going to post a report after the 1/2 day of trading on Monday, but I did want to remind everyone that today is the release of the Fed minutes at 2 p.m. ET. While I was doing that, I figured that I would update some of what we’ve been discussing in past reports. So those charts are just a quick review of a few bullish set ups and trades that we have been discussing. I will also add that even though these General Markets can just continue to rally even higher, we are in the 4th daily cycle and they often get heavy after day 13 or so. That means that we may see a dip down into an ICL in August, so that wouldn’t surprise me. I will discuss that more and more as time goes on. It is just a matter of using stops or controlling position size if you are investing. Enjoy your Wednesday trading!
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