Tuesday January 9th – Buy The Dips
This is a long report, so I still need to proofread it for typos and mistakes. I will do that after releasing it, so you don’t have to wait too late.
.
THE SPX put in a strong reversal after day 48, and this should really be the dcl, with that break of the 10sma. We only had 1 week of selling, so the weekly charts looked as though they needed more selling, but this reversal at the 20 ema flipped the RSI at 50% and we did reach oversold.
.
THE NASDAQ actually flipped at the 34 sma on day 48, and even though it did not push above the 10sma, it was a strong surge very late in the daily cycle and is pushing against the 10 sma. This is a buy too.
.
Last Friday I mentioned in the comments that LABU was reversing at the 20 ema and looked bullish. Biotech & Pharma stocks (XBI, IBB & LABU for example) were running nicely higher in December. I have been trading Biotech stocks and LABU and mentioning them in the reports too, so I mentioned that LABU could move higher from here. I also posted this chart as a reminder on Monday morning as it reversed higher again.
LABU rallied all day and here it was up 10%, but it kept running and was up 13-16% into after hrs. Biotech/ Pharma / health stocks did excellent.
TGTX: And I mentioned this buy last week in that sector, since it was reversing right at support after a nice pullback too. I believe that I even mentioned that it could even be ‘buy and hold’.
.
TGTX – A couple of days later it is running swiftly higher. When I look at past runs, it has a few days up, then a pullback or sideways chop to the 10 sma (not shown here), so if you see it chop to the 10sma, that is a good place to add or enter too. Remember, this ran from $6 to $18 in 2 months, and now it is $6 to $21.50.
.
I will discuss various buying opportunities at the end of the report.
/
WTIC – Oil chopped and dropped again. It actually still looks like it is struggling. At times we have seen the first move out of an ICL run up, chop around, and drop back to the ICL low as wave 1-2 of a 5 wave move higher, so this still could be the ICL, but it definitely is struggling. Oil stocks look a little better, but are choppy too…
The XOP dropped and then seemed to follow the general market higher, since it reversed at the 200sma. This is a much higher low so far, but it is choppy too.
THE USD is stalling at resistance under the 34 sma and a downtrend line. If it rolls over and drops, it may send Gold higher. As this USD popped, Gold dropped…
So with the recent GOLD dip, it is only day 16. That just seems too early for a dcl, but it may become a 1/2 cycle low, so this will either continue to chop and drop as it seeks out the next dcl, or it may bounce higher as the USD struggles at the resistance area described above. Gold is chopping higher, but notice that the RSI & MACD are weaker with each new peak. I explained my bigger picture thoughts in the weekend report.
.
Silver has been weak and is under the 50 & 200 sma.
GDX is at the bottom of the upward channel & the 50sma, so maybe it will bounce with the General Markets and Gold, if the USD dips lower.
.
AS I WRITE THE REPORT THIS MORNING, THE NASDAQ FUTURES ARE DOWN OVER 100, SPX DOWN OVER 20, etc. This could be a buyable dip. If we are looking at a dcl in the General Markets, then we should also have seen buy set ups in a variety of sectors like Tech, Biotech and Health stocks and ETFs (TQQQ, SOXL, SPXL, LABU, etc.), so I’m going to show several bullish set ups below. If you have a watchlist, you can look at the variety of buy set ups that I share and see if something similar is happening to the stocks that you follow. If yesterday was day 1 of the 2nd daily cycle and the first one ran for 48 days, we are just starting to move higher and yesterday was a buy with a stop situation. Enjoy your Tuesday trading!
.
~ALEX
.
IN THE WEEKEND REPORT I SAID:
BITCOIN – We usually see a dip into the 60-day time period, and with Sunday being day 54, that dip really might start on any day. If Bitcoin does drop lower, the Crypto stocks often fall sharply, so a buying opportunity may present itself. I will be covering this sector in the daily reports.
BITCOIN had that red candle drop on day 50 low, so that would make this a day 55 breakout yesterday. The odd thing is that Crypto related stocks were selling off during this sideways chop, but yesterday they did Pop with the breakout. I want to point out that when Gold has been in a STRONG Bull Run, it forms a triangle and then continues higher, and we view that as a stealth dcl. DID WE JUST SEE THAT HERE? It is possible and if so, that would explain something else…
BITCOIN had this bullish weekly chart that I posted in the report. This was a bullish pennant and now?
.
BITCOIN now has a weekly breakout and this could be a ‘continuation’ of the prior run before that consolidation took place. I was thinking that we might get the ‘SELL THE NEWS” pullback with the ETF announcement, and that could lead to a day 60+ DCL. Now? If this isn’t a false break out, I don’t want to sound silly but it could run to $60,000+.
You may recall that I was also expecting possibly an a-b-c down in crypto related stocks if Bitcoin was going to drop into day 60,
.
…but if BITCOIN puts in a stealth triangular DCL and the weekly chart runs, MARA, RIOT, BTBT, HUT, BKKT, WULF, etc may have just ‘consolidated’ the recent gains with the General Markets drop to a dcl. In other words, they may now run with the General Markets out of a dcl (& Bitcoins stealth dcl). NOTICE: An a-b-c down USUALLY has very light volume on the ‘b’ bounce, MARA did not.
RIOT has a spike in volume on the bounce too, so this may have been a dcl for the General Markets & Crypto related stocks may be at their dcl and ready to run with the markets now too.
So watch the crypto stocks. They are very hard to buy, the way they dip down & surge back, but they may be at their next lows. Start small and see how it goes? If you hate volatility, these are not for you, but the gains can be a double or triple, as we’ve seen in 2023.
.
Look at this list of names, they all flipped to bullish.
This is a chart of CRWD and it has made a very nice bull run out of the ICL. The dip to the dcl was only down to the 20ema or 34 sma and it gapped up yesterday. Look up the charts to these companies, you’ll see that they are a buy (I will show more below too, like SNAP, TWLO, etc)…
SNAP formed a massive base & it had a breakout after the ICL last October. This was actually a $8 to $17 run recently, but it has quite a bit of upside left, right? SNAP is a bullish set up in the big picture and at the dcl.
TSEM is a semiconductor stock that just started to run at the ICL in October 2023. What stands out to me are the Mild pullbacks or consolidations (highlighted) along the run higher. This is a buy and hold.
TWLO just started to run in October too. It did a shake out and maybe even an Island bottom dip with this dcl. TWLO ran $50 to $77 and was overheating, so is it still too overextended? Can it continue higher? It has re-set with this recent drop and …
.
Take a look at The TWLO WEEKLY CHART: TWLO was up near $400 in 2022. This makes that daily chart above with the recent move out of the lows (from $50 to $77) look small, doesn’t it? This is a big base, so TWLO certainly has more upside as it continues to recover from the 2022 bear market sell off.
Take a look at AMD: When I look at this strong company, I notice that each time it pulls back and then POPS out of the lows, those lows are never tested again. I see a red candle here and there, but the move continued higher ( high demand), so yesterday was a buy and I think that you can still buy it and ride it.
AMZN ran from $120 to $155, and then it dropped to the 50sma as a dcl approached. Buy the dip with the dcl.
.
I have been following Biotech, Pharma, Health Care, etc for a while, and they are bullish sectors.
.
RNA gapped down to $9.50 and then rallied all day, up almost 20% by the final hour. Take down these names ( BCRX, MCRB, TGTX, FUSN, etc) and watch them. VRAR ended up closing up 36%!! During bull runs, these perform well, and I will cover more below…
.
MCRB was in past reports, since it formed a nice base and was running higher. It popped 12% yesterday and this can start to trend higher. Again, make & check your watch lists when the sell offs bottom and a dcl forms.
.
Finally : MJ STOCKS also continue to act bullishly with their bases.
.
SNDL, TLRY, GRWG, OGI, etc all have formed bullish looking bases. I had these in the recent reports as a buy too…
GRWD popped up over 10% yesterday, so I grabbed this in the morning and posted it.
.
This came out this morning, so we’ll see if this helps the TLRY stock.
