Wednesday June 4th
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THE SPX continued higher on Tuesday and the General Markets are again bullish set ups.
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THE SOXX was up over 2.5% and it is breaking through that 200sma. Semiconductor stocks like AMD, MU, TSEM, etc are moving higher, so the ‘BUY & HOLD’ crowd only experienced a mild dip. The set ups are also an entry point now for Buy and Hold again. In fact…
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MU appears to be ahead of the SOXX, since it already broken out above the 200sma. It was unable to regain that 200sma earlier in 2025, but coming out of the ICL, it has built up some energy and is showing solid signs of strength. AMD and TSEM look very good at the 20 ema too, so this sector & tech in general look good.
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AAOI: My watchlist is full of stocks that have already doubled out of the ICL, but they still can run higher from here, so they also become ‘buy & hold’ again. I want to mention 1 important thing here… ff
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I want to mention 1 important thing here. This recent ‘mild’ looking dip was NOT mild for some of these big movers.
AAOI ran from $10 to $21, but the pullback was $21 to $15, and that is not easy to hold and ride for 2 weeks in real time. So take a look at price action and if a stock moves fast up and down (QUANTS, ROBOTICS, Some Tech), then it may be best to just take a smaller position until you get solid gains. Then add on the future dips. ff
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BY THE WAY: RETAIL STOCKS HAVE BEEN DOING VERY WELL TOO.
This is DG after earnings, WALMART (WMT) is a cup and handle and looks good, TGT did not look great, but now it has formed a base.
WTIC – Oil chopped along the lows for years and then broke down in April. Things have been weak and choppy for Oil, but now some things are starting to change to a more bullish look. That means that Oil can recover that breakdown (at least for short term), and the Oil stocks are really starting to perk up too.
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WTIC – So Oil often puts in a daily cycle of 40-50+ days, so day 34 should be too early for a dcl, yet this look like oil wants to go even higher.
1. A push over the day 5 highs would make this R.T.
2. We have an RSI cross over 50 now.
3. Oil is pushing above the 50sma resistance, and the MACD tagged and reversed higher.
4. I have to call this set up bullish, especially if it becomes R.T.
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So yesterday I said: This is R.T. and some stocks look bullish (some chopping sideways)
XOP -As you can see, Oil stocks made a day 23 peak and then sold off back to the 50sma. When I looked at individual stocks, they are a bit mixed with some bullish and others just choppy. See NOG, VLO, WTI, VET, APA, OKE. Most are sideways off of the lows like Oil.
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So The XOP jumped and I saw quite a few Oil stocks jump too. I’ll discuss that. The XOP likely has a day 30 dcl and it is oversold, so it can break the 200sma on this next run.
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I posted this in the comments on Tuesday: NOG and many other Oil stocks Popped out of that recent pull back. NOG was just chopping sideways as of Monday.
NOG, PDS, BE, APA, WTI, PUMP, etc etc
THIS makes Oil look like it bottomed, had a sloppy first daily cycle, but will gain strength.
Oil stocks look like a buy.
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PUMP surged 10% and regained the 50 sma. This was another one of the ones that I said ‘Some are just chopping sideways’. So now we are seeing the ones that looked weaker POP in a big bullish manner.
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I also posted this about the cleaner energy sector:
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FCEL had a 16% Pop. I had been pointing this one out in May as a bullish climb, but that last sell off was just too much. Suddenly that 4 day drop is gone in one day.
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PLUG (Alternative energy / hydrogen and fuel cell systems) looks to be under accumulation too, with strong volume pops of 200-300Million shares coming in as it bases out. They released good news in May. During Covid, PLUG ran from $1 to $71, so it could have some nice potential if it gets running again.
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Even the Solar stocks Popped. They were shot down 2 weeks ago with some bad news ( I think it was a Trump announcement that left them out of some tax breaks?). Suddenly they started to fly again Tuesday.
SPWR, VVPR, RUN, FSLR, CSIQ, etc took off, some 20% in a day. Does that mean that laggers MAXN & NOVA are ready? I do like their bases.
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GOLD broke out on Monday and dipped or maybe tried to back-test that trendline Tuesday. This was only day 12 of maybe 30. The MACD is shaping up here too.
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SILVER had that Big Burst higher on Monday and it took a pause on Tuesday. It actually dropped on Monday morning, but it started to recover as the day moved on.
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GDX surged on Monday and then it also paused a bit, but many Miners dropped at the open and clawed Thier way back by the close. Or to be more accurate, they sold off at the open and buyers stepped in as the day went on. Let’s take a look at a couple of miners…
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EXK sold off and lost that 200sma in the morning, but it closed back above it by the close. EXK was up 2.77% by the close.
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FSM also opened up lower, sold off for a while, and then ended up green for the day. We saw Miners showing resilience with the Metals down, and that is bullish price action and also that is encouraging.
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USAS actually gapped up and ran, closing up almost 20% higher.
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The bulls are running and we have seen some very good trading set ups as well as the ‘buy and hold’ investing paying off. I’ll cover Bitcoin below, enjoy your Wednesday trading!
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~ALEX
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BITCOIN may have bottomed on day 54, and I say this because we are seeing some upside with the crypto related stocks. Normally though, we would look at this as a possible day 58 and one more drop to the 50sma would be possible. So far, Bitcoin lacks strength with this bounce out of day 54.
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CIFR recaptured the 20 ema 1 hour into trading yesterday, and Bitcoin was red at that time, so I posted this in the commenting area.
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RIOT also started to push higher with Bitcoin Red, so I posted this before 10 am.
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MARA was up almost 8% and again, Bitcoin was red, so it seems that the crypro stocks are starting find buyers near support areas with Bitcoin near or at a day 60 low. These are also ‘oversold’, so they should have some good upside in them.
