Tuesday May 14th
DATA – PPI & CPI NUMBERS are INFLATION Numbers. That will move the markets. We saw inflation spike roughly a month ago and the markets sold off thinking that the Fed will now cut rates or maybe even raise rates, so these numbers are important. If the markets don’t like it and dip down…
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SPX – If the markets don’t like the data numbers and dip down, that makes this look a little tricky. It could
1. Drop for a few days as a half cycle low or
2. It may be starting to form a double or triple top by chopping around for a while.
3. Since THIS should be an ICL and the first daily cycle, so really it is too early to top here. That makes the 1/2 cycle dip more likely, but it could start to weaken the overall big picture and then start to make it a choppy triple top over time.
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I will say that I actually see a LOT of nice set ups in the General Markets after that deep sell off, so I will include a few stocks in the report below.
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WTIC – Oil is still under the 200sma and looks to be breaking down. It bounced off of the 50sma, then dropped and lost the 20ema, the 50sma, and the 200sma.
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I think that we are seeing The USD as choppy and weakening and also rolling over in a similar way that it did in February and March. This could be a peak on day 4 of a new daily cycle.
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GOLD dropped on Monday, but it is only day 6 and it remains above the 8 ema and the 34 sma. Inflation Numbers could really affect Gold, and you will know that by 8:30 a.m. ET today.
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SILVER – At this point, Silver still looks very good. This is day 7 for Silver, please read the chart.
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GDX – Miners dipped lower too, but remain above the 10 sma. Is this a double top? Inflation numbers at 8:30 may answer that for us.
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BELOW I JUST WANT TO SHARE SOME CHARTS WITH YOU:
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HL – Most of the Miners look the same. They are pulling back, so depending on how those inflation numbers come out, this may be a buy the dip opportunity.
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With the General Markets, all of the popular stocks pulled back and are now having thier bullish recovery out of an ICL. I will post several charts below, but you can always look up your favorites and see if they look similar ( AMZN, NFLX, GOOG, MU (50 sma), AMD (200 sma), etc, etc)…
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NFLX gapped down sharply after earnings, but when the ICL drop was finished, so was the NFLX drop.
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AMZN recovered to new highs already after a plunge and recovery formed the famously bullish ‘Abandoned baby’ candle.
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NIO has been selling off for a year, but it bottomed and broke the downtrend now. It just dipped down and reversed off of the 20ema, and you can buy that with a stop. IF THE MARKETS DIP DOWN with inflation numbers to a 1/2 cycle low, it might be best to wait though.
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PLUG is trying to bottom out & break free from a downtrend too. I am seeing this in the EV and Clean Energy sector. This small move yesterday was actually a 12.89 % pop, and Thursdays pop was on earnings, so this seems to be a good sign.
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QS released earnings 2 weeks ago and has bottomed with a higher low. Yesterday it surged up 11% and closed above the 50sma, and that 50sma capped its run in March and early Mat, so this is bullish.
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SOUN is an ‘AI” stock that ran from under $2 to over $10 in February and March. It seems to have sold off with that ICL drop, but now it has already moved almost 100% off of the lows. Impressive and that GAP UP on Friday was the earnings day for SOUN. I wish I bought the crawl under the 20ema, or the back test of the 20ema, but this may be an area that is a good buy if its running to $10 again.
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BLNK broke a down trend and looks to have back tested it. They released their earnings on that 20ema back test last week, so that is out of the way and now BLNK was up 10% yesterday. This looks like a post-earnings base & bottom.
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So you can see many stocks are rising up off of the lows and out of a base… AFTER THEIR EARNINGS RELEASE. That makes it a lot easier to buy and hold, rather than when earnings are coming up. Miners are also dipping a bit, we’ll see what the inflation numbers will do to the General Markets and Precious Metals. Enjoy your Tuesday trading!
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~ALEX
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THIS IS FROM SUNDAY
BITCOIN: Day 51 (Friday) saw Bitcoin actually drop as expected.
Saturdays candle is day 52, and it is that tiny green doji, but its not done forming yet.
So Sunday will be day 53, Monday 54, Tuesday 55, Wednesday 56, Thursday 57, etc .
The last DCL came on day 57, so we’ll just have to look for the lows in real time, but remember that the crypto miners may bottom first. I will be covering all of this in the day to day daily reports. 🙂
BITCOIN: Is dropping this morning on Day 55 this morning. I feel that a break below day 42 and a reversal will be the next buy. We have been very patient while waiting for this trade, so I really hope that the Crypto stocks drop and quickly recover and rally with Bitcoin.
