Tuesday June 4th – Dips
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SPX – The General Markets gapped open higher, then dropped and recovered yesterday. Day 29 could be a half cycle low or possibly an early dcl. Either way, we should move higher but I do see MACD divergence so far.
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I pointed out that Biotech stocks were moving higher yesterday and LABU was up over 10% in the first hr. It sold off midday and then closed up around 8% , so this sector is pushing higher. That could be a dcl for Biotechs too (XBI & IBB) after a rather steady sell off in March & April.
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The USD dropped sharply Friday and tried to bounce on Monday, but I still expect lower prices from here.
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WTIC – I have been saying in my reports that Oil should sell off and it really dropped sharply on Monday. That was a 3.60% drop. It may bounce after a drop like this, but we are only on day 29, so I expect Oil to probably return to the lows. Oils cycles can last 45-50 days.
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GOLD has formed a double top with the 3rd daily cycle and it is most likely going to remain the ‘peak’ of this intermediate cycle. Gold held up at the 50sma at day 20, but I do expect this to sell off lower and break the last dcl to give us a failed daily cycle. We then sell down into an eventual ICL. I EXPECT SELLING.
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SILVER – Silver has double topped and we really have to be prepared for Silver to drop lower over time too. Look at the April sell off and that is something similar to what we are seeing now. The stochastics remains n overbought territory, so we can sell off for days into the next dcl.
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GDX – The Miners should drop if Gold & Silver drop.
Take a look at the sell off in January and know that I am expecting something similar, but maybe not quite as sharp or deep. With that in mind, we’ve had to decide if we want to hold on to a full basket of Miners(?), Lighten up a little (?), cut it in half (?), or sell Miners and wait for the next low to develop.
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I have mentioned in my report that I no longer hold my Miners, but I look forward to reloading at the next ICL! Trading has been a bit choppy in other areas and can be boring, but the General Markets can push higher. Biotechs looked good, and I’m watching some other areas for possible trades, but it is choppy so far. Sometimes just waiting for the next good set up is a good idea too, like the ICL for Miners (or for some, the Crypto trade that I’m hoping develops as soon as this week). I do expect lower prices over time for Oil and The Precious Metals. Sometimes it is best to be patient and stop trading in those sectors, and prepare to buy when the time comes to us. We also have a Fed Mtg next week, so we’ll see how things play out as we head into the Fed. That said, if you are still trading, enjoy your Tuesday trading.
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~ALEX
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BITCOIN started to breakout, and Crypto Miners started to rally. I’ll be honest here, I added to my positions with the breakout and then it started to sell off again. So what happened next? Crypto stocks sold off again and I had to cut my new positions for a small loss, but I still have my smaller starter basket of Crypto miners as I wait for the breakout and run. That was disappointing, and I just didn’t want to be TOOO heavily invested with the uncertainty, but I do still expect Bitcoin to breakout and run. Like I said, I just don’t want to ride the choppiness too heavily invested.
