Wednesday August 27th – Dips and Rips

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SPX – Yesterdays report was titled, “It’s probably just a pause!” and then we got our upside follow through to that Pop on Friday, so hopefully we are going to see more gains this week. Being on day 17, we do have more time to move higher, especially with surprises to the upside in a bull market.

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AAPL – You may recall that I pointed out Apple over a week ago as a lagger that was stuck in a consolidation after the ICL. It finally broke out, but we don’t want to chase, so I said to look for a dip (as drawn here) and a possible buy with a reversal.

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AAPL dipped to the 20ema, and that might be enough. I though that maybe we’d see a dip to the 200sma, but the 20 ema is here and price reversed and moved up on Tuesday.  This is probably the buy, because it looks better than the Fed Friday Pop.

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 I have been watching HOVR for a long time in this sideways chop (Aircraft like JOBY, RKLB, SPCE, ACHR, etc). Well, I grabbed this at 1:45 pm for the report (Grabbed the chart, not a position), up 7%, because RKLB has been acting correctly, and guess what?

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Well, I grabbed that above chart at 1:45 pm for the report and guess what? It took off, closing up 15% and volume perked up a bit.  HOVR could be ready to run.

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Our RKLB trade at the 50sma is paying off as it runs higher with decent volume. It ran from under $40 to over $50 in 5 days. It could keep running or form a cup and handle.

 

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Speaking of JOBY, RKLB, and HOVR – How many times have I heard people say, “I wish that I didn’t miss that rally in JOBY” (Or XPEV, or QS)? Well, they do often re-set and start to run again, and JOBY has been bouncing around the 50sma for a bout 4 days. It is oversold too. A run to recent highs is $14 to $21. That is not bad.

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RGTI is a Quant Stock that we have traded. It dropped right to the 50 sma and reversed higher. It closed up 5%, but this can easily put in a 10% plus day, so I feel that it is a buy opportunity AS LONG AS YOU CAN PUT UP WITH THE CHOP.

Notice the Friday pop, Monday drop, Tuesday pop.

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RR tacked on another 32% on Tuesday and this is a sweet launch out of a base. I know that they released some good news, but this almost looks like there were a lot of ‘shorts’ that had to cover. The volume has been relentless.

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WTIC – Oil remains choppy and as a result it is difficult to read the dcls. Daily cycles for Oil can be 35 days long or they can be over 50 days long, so the chop makes it very difficult to read, but overall this is just difficult to make any money on, though some of the Oil Stocks are doing ok.

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GOLD popped on Friday, paused on Monday, and then popped again on Tuesday. It has been great watching miners simply running to new highs day after day while Gold and Silver actually ride sideways.

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SILVER has been choppy and it is also moving sideways in a 4th daily cycle. With Gold and Silvers sideways chop, let’s take a look at a few Miners & GDX.

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AS GOLD & SILVER CHOP SIDEWAYS, TAKE A LOOK AT WHAT THE MINERS ARE DOING:

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GDX is NOT chopping sideways, it is running higher day after day. And some Miners that we’ve liked…

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Some of the leaders that we have liked, like IAG, NGD, KGC, etc are running without the Metals. Some Crypto stocks are also doing that without Bitcoin.

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This is IAG for example. It broke out last week and kept on  running.

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NGD dropped with earnings in July and then put in a V-Bottom rally that has been very strong day after day.

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KGC I admit it: I sold my KGC after the triangle breakout ran higher, and then chopped sideways. Why did I sell? As it chopped sideways in August at those highs, SIlver was in daily cycle #4, Gold chopped sideways, and we were going to hear the Fed speech from Jackson Hole.  It’s OK, because some of my trading money went to CIFR, IREN, HUT, etc as I expected a low in Bitcoin, and they have done well.  That said, take a look at KGC as it runs higher and higher.  Some of these Miners are beautiful charts!!

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It has been nicely bullish for the ‘Buy & Hold’ crowd and ‘traders’ alike. The bulls are running and the set ups continue to look good. Enjoy your Wednesday trading!

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~ALEX

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BITCOIN does have a reversal candle at what should be day 65, so we would expect this to be the low. As mentioned, some of the Crypto stocks are running as Bitcoin drops, so are they predicting this low? Possibly…

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RIOT is not running as well as CIFR and IREN, but it is not dropping with Bitcoin, it dips in the morning and buyers seem to be stepping in. It closes green, so I grabbed this chart when I got home yesterday (2 hrs into trading). RIOT closed up 3%.

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CIFR is running higher while Bitcoin drops. This really isn’t a ‘true’ cup & handle, but it can play out that way. If Bitcoin bottoms and runs higher, you just have to believe that this is going to run swiftly.

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HIVE also gave us a breakout as Bitcoin drops. I pointed out Hive near the 50sma, because they released earnings back there and it started to follow CIFR and IREN, rather than Bitcoin itself.  Normally I would picture a back test of the 200sma in the near future, but if Bitcoin bottoms, this may just continue to run.

 

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WARNING: DANGER: CAUTION!!  VERY HIGH RISK, BECAUSE SBET MOVES VERY FAST AND COULD DROP SHARPLY: Sometimes I avoid even posting these due to the risk, but I will put this out here as a bullish set up. I would not take a big position in this, but it is also holding up well as Bitcoin drops. WHY?. They have been purchasing very large amounts of Ethereum.

 

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SBET – Ok, let’s talk crazy.

SBET ran from $2 to $124 in about a week (That is crazy!). It then dropped to $9 (CRAZY Huge drop!) and stabilized a bit right on the 200sma, and then ran from $9 to $40 in July. It has now dropped to the $17, is currently near $20 and looks bullishly set up.  Remember, this could drop to the 200sma or rally. Be careful, this is a fast mover.