Tuesday April 2nd – Still Going Strong
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SPX – Monday was slightly red, but this is a gradual climb higher. I have discussed that a clear dcl does not show up on the gradual incline of the SPX, so I have used the NASDAQ, DOW, and SOXX.
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THE NASDAQ does show that the 10 sma turned slightly lower on the choppy dip in mid-march. That should mean that we started our 3rd daily cycle, one that could be a bit weaker or choppier over time. Let’s look at the SOXX.
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THE SOXX dipped lower and turned the 10sma lower in an obvious sell off, so I marked the dcl in that area and it also matched up nicely with the anticipated timing for a dcl too. The RSI tagged 50% and the MACD is starting to curl back up. This looks to be day 8 of daily cycle #3 for the SOXX.
THE USD is acting bullishly. It made a new high in this daily cycle, so now we have the bullish ‘Higher low, higher high’. Despite the strength, the Precious Metals did well.
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WTIC – Oil made a new high on day 38 of the 2nd daily cycle. That should lock this in as a right translated daily cycle. Oil remains bullish, it has been a choppy climb, and a dip will come due around day 45-50 if this is like many other daily cycles.
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GOLD LIVE 6 a.m. : Gold Ran up on Sunday night, but sold off during Monday. This made Gold look like a Pop and drop and we ended the day with a doji, but as you can see, we are now running higher again this morning.
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SILVER did a pop and drop, but thankfully our Silver stocks did not. Many were up 4-8%. CDE was up over 10%, so the Miners seem to be starting to come into favor…
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SILVER LIVE TUESDAY 6 am: This morning Silver is running higher again, so yesterdays ‘pop and drop’ was not a sign of weakness and as mentioned, the Miners ignored Silvers sell down.
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AG – The Silver stocks are leading the way higher.
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THESE WERE IN THE WEEKEND REPORT:
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AG WEEKLY– First Majestic is breaking out from a bullish descending wedge and this looks to just be starting to run. It was up 9% this week, but most of us here put this in our basket in the $4-5 area, and now it is almost $6, so the gains to the basket of miners continues.
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EXK DAILY- After a nice box consolidation formed under the 200sma, EXK broke out on Thursday. This looks like a good place to increase position size, especially if Silver does decide to kick things into gear. Take a look at EXK last March, it was a similar set up.
EXK DAILY- Silver had the ‘pop & drop’, but EXK continued higher.
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HL WEEKLY– Hecla broke from a downtrend and was up 14% last week. These are NOT waiting for Silver, and again, this has moved from $3.50 to almost $5 and looks to have plenty more in the tank. So…
GDX – We had a pop and drop in the GDX within the first hour, so I drew this chart to show that even if we don’t get a ‘Gap fill and reversal higher by the close, this has happened before and it didn’t stop a bullish move higher.
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So by the close the GDX started to rise back up, but it didn’t get back to the highs of the day. Again, this may not be important and the overall minimal target should be higher than where we are now.
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The markets remain Bullish despite any strength that we saw in the USD. Ride that Bull and enjoy your Tuesday trading!
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~ALEX
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BITCOIN -I don’t want to make too big of a deal about this, but that drop overnight was a little out of the ordinary in this bull run. We are early in a new daily cycle after that day 57 low, and We just broke back down through the 20 ema. In all of the more recent rallies, that only happened when we were seeking out the day 60 dcl (after day 50). What might that mean?…
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BITCOIN -That MIGHT mean that we are not going to ramp straight up like we did in the recent past.
We may start to consolidate these recent gains before the next real strong leg higher to $100,000. It’s really too early to be overly concerned about a 20 ema break, but when I look at charts, I do look for similarities and variations. In this case, I am seeing a slight change and when I see that, I like to let you know. At this point, it is no big deal, but we might see some choppiness in this sector and the crypto miners may have already been showing us that ahead of time when they stalled & became choppy recently. This may be due to the upcoming ‘halving’.
