Wednesday June 5th – Pop and Drop
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SPX – This looks to be a half cycle low and it also may become a 5 wave move up out of the lows. The price action here has been more difficult than it looks. Long wicks indicate a sell off that recovered, and we saw that on Friday, Monday, and Tuesday. There seems to be a lot of selling and then buying and that might indicate distribution. We have a Fed mtg in 6 trading day and timing-wise, that will be day 37 and we could then dip and seek out the next dcl.
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WTIC – Oil coiled sideways with that megaphone type pattern and the reason that I was calling for lower prices was because we had a failed cycle and we were only on day 20 or so. We are only on day 30 of a possible 45-50, so we STILL have plenty of time for this to move lower. I would have to expect a bounce with that much time left, but this still calls for lower prices in Oil.
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GOLD is on day 20 and we are 6 trading days away from a Fed Mtg, which means that Gold will be on day 26 when that Fed Mtg arrives. That Fed Speech could help to change the direction or end Golds selling.
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SILVER bottomed before Gold, so it is on day 22 and it really started to break down yesterday. Silver will be on day 28 when the Fed Mtg arrives. It will help to see how this plays out over time.
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The Miners or GDX bottomed well before Gold & Silver, so we see that the GDX ETF is already 29 days out of the low. It will be on day 35 next Wednesday, unless it crashes lower and then bottoms before Gold & Silver again. In that case, it could bottom the day before or the day of the Fed Mtg.
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HMY: Some of the stronger Miners began to lose what would normally be considered bullish support, so when this happens, the selling can increase as people take note that the uptrend isn’t being supported anymore.
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We have been expecting this sell off in the precious metals, but we just need to step aside and let it play out as we approach the Fed Mtg, and then watch carefully for a possible low around that time next week. I’ll discuss the Bitcoins Pop & Drop price action below. Enjoy your Wednesday trading.
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~ALEX
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BITCOIN: This is where we are seeing our POP & DROP price action.
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This chart was in yesterdays report, and we had an attempt at a breakout of the short-term downtrend. This was a small pop and drop.
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BITCOIN: In the morning on Tuesday, we got that breakout, so I grabbed this chart to show the short-term downtrend was still experiencing a breakout. Many Crypto stocks started to add on some gains. Guess what happened next?
BITCOIN: The LONGTERM trendline seems to have kicked in as resistance and Bitcoin started to pull back slightly toward the end of the day. Another Pop & Drop. Guess what happened to Crypto-stocks? Yes, they had rallied all morning, but then gave some back by the close. So now we I think that we are waiting for a breakout of that long-term trendline
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BITCOIN: This is Bitcoin at 7 a.m. ET, and the price tagged that line and pulled back a little again. So far? Another Pop & Drop. Once this longer term trendline is broken, I would expect an easier ride higher and the Crypto stocks to be able to rally more consistently, but many are making at least some gains at this time too.
WULF was up 20% by midday and it was actually up 25% at one point. It closed up 22.44%
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IREN did a massive pop and drop on Monday, but it made up for it yesterday by following through higher and holding most of the gains on this attempt. You can see that it did sell off a bit toward the end of the day. Volume has been excellent.
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BITF – Slow and steady progress is still taking place in some of these Miners. $1.60 to $2.40 is actually a pretty nice %-Gainer.
