Thursday October 2nd – A Class in Bullishness
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NASDAQ – The ADP employment report came out at 8:30 and apparently the markets didn’t initially like it because we gapped down at the open, but the markets rallied higher- likely because another interest rate cut seems more likely. We do have the Unemployment Report tomorrow. That may have the same effect.
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CHARTS, CHARTS, CHARTS: Many set ups in the recent reports are playing out as expected, so I wanted to add some more here.
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ACHR -started breaking higher through several resistance areas, as seen here. Now it is above the 50 & 200sma and looks ready to run. It popped over $10 and then sold off a bit, so you can still buy it under $10.
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FROM YESTERDAYS REPORT
BBAI – These Gravestone Dojis usually signal the end of the selloff, this is a buy at support. e had a STRONG run up and now a nice pullback to buy at support…
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BBAI closed up 7% and this can continue to run. That last rally was non-stop.
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Energy stocks have been on fire:
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We caught PLUG down at the 50sma/200sma. It finally pulled back during that dcl sell down, but take a look at what happened on Wednesday. 25%! Other Energy stocks are also starting to turn up again too…
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BLDP, FCEL, PLUG, BLNK, etc rallied and pulled back too. I pointed out BLDP here, it closed up almost 9%. This also ran up day after day after day on the last run, so maybe we’ll see a similar run now?
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FCEL was also a buy at the reversal and it tacked on 12% on Wednesday. You’ll notice that FCEL also ran higher day after day, and that first large POP was from their earnings report, so FCEL also looks good.
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ENVX – Lithium stocks are running (LAC, SLI), so Lithium Battery stocks ENVX has been bullish. They did an Offering and crashed down (see the chart), but it has bullishly worked its way higher. It rode the 20ema and started to push the 50sma, so I grabbed this chart…
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ENVX burst through that 50sma after that nd was up 11.43% at the close. This CAN just run away higher too, so you could start a small position with this breakout, but also…
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ENVX -If you see it stall or flag like it did at the end of June, then you could add to your small starter position.
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Energy stocks like the Uranium Stocks (DNN, UUUU, CCJ, URG, UEC, etc.) are still set up bullishly. Some dipped to the 20ema, some like DNN are clingng to the upward sloping 10or 13 sma.
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UUUU – This one dropped with an Offering, but it reversed right at support and could continue higher.
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GTE rallied in September, then churned sideways and reversed at the 10sma Tuesday and Wednesday. This is a buy.
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I posted in my report that I her people say, “I wish I rode QS higher!”. I said that this is the 2nd chance to do that with a large gap over the 50sma, a drop and a reverse. BUY QS at the 50sma or when it breaks out…
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I had 6 charts that followed that QS buy after it broke out. This was my Sept 15 chart, still a buy…
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QS – The rally played out, and…
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QS – now it may have formed a cup and handle. Hold if you bought it, and you could add or buy here too.
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FROM YESTERDAYS REPORT
RR I pointed out the reversal with RR on Tuesday morning comments and took a position. It was up 1 penny at $4.11. 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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This was another view of RR later on Tuesday.
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RR closed up 11% on Wednesday, but it also dropped with the gap down of the markets at the open, so you had a nice opportunity to buy when it broke even.
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Lithium stock LAC was up 25% and
SLI was up 14%,
so I am watching SGML and hope that it will do the same. It is a buy right here or if you see it break the triangle downtrend line.
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YESTRDAYS REPORT
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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SMCI gapped lower with the markets and then rallied higher, so I posted this reminder in the morning..
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SMCI continued to climb and was up 8.5% before the close and closed up over 9%, so these set ups are still playing out bullishly.
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UUUU dropped on an offering, but it too has reversed and started to run higher.
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This is very interesting: WTIC or OIL dropped sharply for 3 days and is right back at the lows, but I saw several Oil Stocks popping up rather strongly. I’ll show you 2 Oil stocks that did not follow Oil lower…
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PUMP looks like a good buy if you want an Oil stock. It didn’t follow Oil lower and it broke above the 50sma and back tested it too.
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WTI also looks like a good buy. It didn’t drop to the lower lows and it landed and reversed right at the 50sma (use a stop there) while Oil was still at the lows. VET did the exact same thing and APA has been running up an incline, so Oil stocks were able to remain bullish with Oils sell off.
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THE USD broke above the 50sma and then lost it again. If it has peaked, it will be very L.T., but even if it bounces again and peaks later, it could still resemble the last bounces that peaked as L.T.
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GOLD has a reversal on day 9. Is it a L.T. top? Maybe, but I am also pointing out a similar ‘topping candle’ that was followed by a sideways churn. We have to let it play out, and I discussed 2 scenarios for Gold, Silver, and Miners in yesterdays report.
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SILVER was up nicely on day 10, around 2% at one point, but the Silver Miners popped and dropped, so that was a bit concerning. It may indicate that Silver is going to pull back.
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GDX – This also could be topping candle, especially if Gold and Silver decide to pull back, but even if they do pull back, how far will it be? Just to this 13 sma again? So far we’ve been getting surprises to the upside and if we are going parabolic, that could continue.
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Jobless Claims comes out this morning and that may send the markets lower too, just like yesterdays data caused the markets to gap down. After the initial selling, however, the markets still ended up running higher with the hopes of another rate cut in 2025, so this bull just continues to run its’ bullish course. Biotech and Energy stocks really seem to be perking up again, and we caught the energy stocks like BLDP, PLUG, BLNK, FCEL, WWR, etc early in the first leg up, but now they seem to be ready to put in another leg up. Tech stocks are set up bullishly after the dip too, so the bull continues to run ahead. Gold and Silver were higher, but several Miners popped and dropped, so we’ll keep an eye on that. Bitcoin surged yesterday too, but I was rather disappointed with most of the crypto stocks. They surged at the open and then they sold off, while Bitcoin continued higher, so I’ll discuss that below.
Enjoy your Thursday trading!
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~ALEX
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BITCOIN YESTERDAY at 6 a.m.
It looked bullishly set up & closed above the 50sma, but now it really looks bullish after breaking higher through that downtrend overnight on Tuesday.
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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BITCOIN – Well, we did get that higher high above day 17 on day 30, and with 30 more days left in this move, you can see how bitcoin could really do well. That said, even with this very large candle higher, I saw crypto stocks pop higher at the open and sell off all day. I will just discuss that briefly, but we need to see if that changes soon or not.
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Even with this very large candle higher in Bitcoin, I saw crypto stocks pop higher at the open and sell off all day. I will just Post a few charts of that price action and then we’ll need to keep an eye on it, because that move by Bitcoin really should have drawn in more buyers, not profit takers.
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WULF has been strong, but it weakened on a day that Bitcoin surged and broke a downtrend?
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CLSK also has been strong, but it weakened on a day that Bitcoin surged and broke a downtrend?
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RIOT also has been strong, but it weakened on a day that Bitcoin surged and broke a downtrend?
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It was surprising to see the bullishly set up Crypto stocks act weakly on a day when Bitcoin surged, got above the 50sma, broke a downtrend line, etc. We’ll just have to see what happens going forward. Stay tuned!
We’ll
