Wednesday October 1st: Bull Markets – Buying Those Dips!
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SPX – Assuming that we had another mild dcl, we would be only on day 3 and almost back at all-time highs. The set ups on many stocks are bullish too, after that 3 day dip…
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BBAI – We rode BBAI from the near the lows to the highs recently and that was almost an 80% move for BBAI (from $4.75 to $8.50).
Now let’s be honest: I didn’t catch ‘THE LOWS’ and I didn’t sell at ‘THE HIGHS’, so
1. My position was a smaller starter position and
2. I only caught the middle of the move. Maybe you did too? A good scalp trade?
3. Well NOW that we saw how this can run, we could buy with a stop in this area and maybe go a bit heavier.
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RR I pointed out the reversal with RR on Tuesday morning comments and took a position. It closed up almost 5%. This is low risk high reward if you use a tight stop. Just take a look at what RR did from August to September ($1.75 to $5.75). That is a huge quick rally, I hope we get another just like it.
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SMCI – I pointed this out last week, because it looked ready to go. I said that it is a buy here or wait for it to close above the 50sma. I also said that if it ‘gaps up’, we’d have a bullish Island bottom. That was last week, What happened next??
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SMCI -The markets dipped into a dcl and SMCI just chopped along bullishly under the 50sma, forming an inverse H&S. On Tuesday it closed above the 50sma. I’d call this a buy. P.S. If it gaps open & runs, it’s an Island bottom.
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I have been seeing Biotech and Pharma stocks shaping up, so I will add a couple below and then move on.
CRBU -After a good rally, a dip into a consolidation around the 50sma is healthy. you can see how chppy this run was from May to July, BUT… CRBU was also a triple gainer.
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CRMD is a good set up, but it comes with a slight hesitation too. Looking at the price range, this one moves rather big in both directions. Just look at August-September alone and you’ll see what I mean. Under $10 to $15, back down to $11. That said, we now have a wedge breakout and back-test, so it looks ready to go when it gets above that 50sma.
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I pointed out DNA as a good set up and we started to get follow through on Tuesday too. DNA ended the day closing up 10% as it heads to $15 and I’m not selling. Why?
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LOOK AT THE DNA WEEKLY -Above $15 could get very interesting if it just keeps running. At times when I have been in DNA, it gives me 10-15% up days. The dips are tough when it drops 7%-10% or so , but I want to try to hang on and see where this one goes when it leaves this base. $30 doesn’t look that far and there is no resistance on the left-hand side. One problem is that biotech stocks can deliver bad news and get crushed. Keeping it small.
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THE USD broke out above the 50sma and then dropped below it, but it may just be to back-test that downtrend line.
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GOLD continues higher and assuming that this is a mild dcl, then Gold is on day 8. That means that our 2 main scenarios are still in play
1. Gold could continue to rally strongly and go parabolic or…
2. Gold could peak soon as L.T. (day 11 or so?) and then give us a pullback into October to an ICL that will become a great buying opportunity.
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1. Gold could continue to rally strongly and go parabolic from here or…
2. Gold peaks soon as L.T. and gives us a pullback into October to an ICL that will become a great buying opportunity.
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SILVER is on day 9 with a day 8 peak so far, but just like Gold, this can continue to rally higher or it could peak soon and start to roll over into an ICL for October. What a buy that would be, because miners would start to go straight up from that ICL.
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GDX is on day 8, it has been running up the 13 sma, which is very bullish. GDX has the same scenario as Gold & Silver. We do have some 5 letter miners going straight up and that can be the end run, but a pullback could reset the coil and spring those upward again.
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Are the bulls still in control? Absolutely! After the small 3 day dip in the General Markets (Our bucket had hole in it), the General Markets are near the all-time highs again and the Precious Metals sector continues higher too. Gold is at all-time highs. Bitcoin has been shaping up and if it runs higher from here, it too could hit all-time highs, so the bulls are running. I’ll discuss Crypto below. Enjoy your Wednesday trading!
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~ALEX
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Bitcoin – I wrote this report on Tuesday evening and Bitcoin was looking like it might break higher after closing above that 50sma, so I just grabbed this chart showing the downward sloping channel and went to bed. Bitcoin trades overnight and I’ll grab a new chart in the morning. CRYPTO STOCKS have been bullish and a buy.
Bitcoin 6 a.m. – Good Morning Bitcoin! It looked bullishly set up & closed above the 50sma, but now it really looks bullish after breaking higher through that downtrend overnight.
1. We now have a higher low at day 24 and it would be great to see a higher high above day 17 this week.
2. The RSI regained 50% and is at 58 and the MACD is crossing upward today.
3. If this is day 30 of possibly 60 days, we have 4-5 weeks until we hit day 60. Think of the potential if it does a bullish surge rather than continue to chop sideways.
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Now take a quick look at this :
Bitcoin – I don’t want to put a damper on the party, but Bitcoin often uses a multi month time period (4-5 months) to churn out a consolidation, so it can break higher and then roll over too. Let’s just keep that in the back of our mind. I’m hoping that this one just takes off and becomes a rare shorter consolidation, like the last one.
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Bitcoin – So I took that smaller consolidation and the rally that followed (Orange triangle) and I copy/pasted it to where we are now. We would get a run to about 150,000 and then the 4 year cycle could begin to pull back.
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BITF – I posted this in the commenting section as a buy opportunity. That last run was big and it was straight up, so now we have the ‘buy the dips’ dip reversing higher again.
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From Yesterdays report: I posted this chart on Monday
This was CIFR on Monday morning reversing near support. CIFR had announced an offering and dropped sharply, but it may have just found support. NOTE: Bitcoin dipped yesterday and CIFR was still at this price area , so it was still a buy.
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RIOT has been running and it can run higher. Especially do we see that when we zoom away…
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RIOT WEEKLY – I posted this in our reports back in early September when Riot was $13.29. It tagged $20 this week and can still run much higher if Bitcoin does.
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CAN WAS A LAGGER -when I posted this on Sept 18 ( $0.83)…
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CAN popped 20% last week and is still at this price ($0.88 actually), so it still has upside potential as a lagger likely starting to move out of a base.
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HIVE was one that I pointed out as rising with volume as Bitcoin dropped, so I pointed it out as a buy long ago with this high volume breakout at the $2 area…
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HIVE released earnings and started to run while Bitcoin sold off, so this was another very good sign
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HIVE was still running after we bought…
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HIVE: Fast forward to today, it has doubled out of the base, and it looks ready to continue higher after this bull flag
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And yesterday I pointed out this nice consolidation with WULF and said that this move sideways over to support has made it a little easier to buy and hold.
