Tuesday May 13 – Looking Good
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THE SPX on day 24 makes this most likely R.T.. It was crawling under resistance when the ‘tariff talks’ returned as progressive and the markets gapped open higher. This is exactly what I said could happen if we get a low like that Covid ICL in 2020. News could come out as slightly positive, but it is taken as extremely bullish for the markets. Buying in and raising stops has been working out well. MANY of the former bullish stocks are also rising.
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THE NASDAQ also gapped up over the 200sma. I had mentioned that the SOXX was lagging & could be bought as it tries to play catch up …
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THE SOXX is still under the 200sma and that may or may not act as resistance. We are on day 25 today, so this could ‘crawl’ along the 200sma for a few days and then dip into a dcl (Buy), or it could break out and back-test into a dcl(Buy).
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BBAI – is an AI stock that did exceptional in Nov to Feb. ‘Soun’, which is in the same ‘AI’ group rallied up 20% from a very similar looking base yesterday, so BBAI has a base and is trying to escape above that 50sma. It looks like a good set up, but I really wish it popped more on a day like yesterday.
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LTBR EARNINGS (Another former strong runner) came out, and I grabbed this chart of it climbing the 20 ema. It gapped open, closed the gap, tagged that 20 ema, and then went on to close Up about 15% by the close.
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QSI (The QUANT STOCKS) – The Quant stocks have long bases and are starting to pop, so I pointed out how QSI is breaking out. These can eventually, over time, work their way back to the highs if things remain bullish.
NOTE: QBTS released earnings and popped 50%! RGTI released earnings last night and I liked the numbers, but it dropped 14%, so I’m keep an eye on that one. It may be a buy later on.
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WTIC – Oil is on day 22, but it has peaked on day 6 (so far). Oils daily cycles often run 40-50 days long.
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THE USD is on day 16 & should be R.T., so it is starting to perk up, but it also could hit resistance and start to crawl & dip into a dcl. IF SO, could Gold bounce when the US dips? It could, and this is why…
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GOLD – I mentioned in the comments yesterday that with Gold L.T. and on day 24/25, it could form a dcl now or closer to the 30 day mark (when the USD pulls back). I then showed ANOTHER L.T. Daily forming a triple top & rolling over into an ICL.
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GOLD dropped another $88 – With Stock charts, Gold is on day 24 with a day 10 ‘peak’. It CAN drop further to that 50sma and even break it a little to form a dcl. It is NOT oversold, so that may come a little later this week.
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SILVER – With Golds drop of $88 Silver dropped and started to bounce back. This does put ideas in my head. At times we have seen Gold ICL a whole daily cycle ahead of Silver. Could Silver have an ICL and Gold puts one in after the next daily cycle? We’ll see. We also know that Silver can just flush down when it wants to sell off too, but the thought did occur to me that Silver followed the general markets and crashed and could have an anomaly ICL.
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GDX – Miners continued to follow Gold. The last daily cycle was 25 days long, and that is right about where Gold and GDX are now. They are NOT oversold though, so the drop can continue…
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Again, GOLD & GDX are NOT oversold, so the drop can continue, even if we bounce for 2-3 days again, and then drop for 3 into the dcl after a bounce (30 days). Volume selling ramped up, similar to the last dcl.
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Everything Bullish remains bullish, and the General Markets really surged on tariff news with China. Even Gold, with its $88 pull backs this week and last week, remains a bullish set up, but all Bulls do stop and take a rest at times, so we are starting to see that in the Precious Metals Sector. Enjoy your Tuesday trading!
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~ALEX
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BITCOIN has done very well lately, and I’m hoping that it can continue on this bullish run. Even if we dip lower or chop sideways to the 20ema area, it can continue higher. My cycle count has us early (7th day) in another 30 day run, but it did quickly get overbought and is back near all-time highs, which can act as resistance. That said…
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My cycle count has us early (7th day) in another 30 day run, but it did quickly get overbought and is back near all-time highs, which can act as resistance.
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I’d love to see another ramp up higher like we saw in September through December, but I also am not impressed with the volume yet (representing demand). We could form a ‘cup and handle’ at resistance too, if volume remains light.
