Wednesday December 24th – Half Day
Today we will only have a half day of trading, since the U.S. Markets will close at 1 p.m. Because of that, this is just going to be a quick review, and I will start by saying that the Bulls remain firmly in control. 🙂
.
THE SPX – The general markets are on day 21 coming out of a half cycle low at day 17. This is what we’ve been expecting and hoping for, and it can continue through the end of the year. This is obviously Bullish.
.
THE NASDAQ looks somewhat like an inverse H&S Pattern too, which would indicate that it could break the highs and keep on running. This is Bullish.
.
YESTERDAY I POINTED OUT THIS BULLISH PATTERN TOO:
THE NASDAQ is not at the highs yet, but we do seem to be forming a bullish triangle.
.
Did The USD put in a dcl and already break down? MAYBE. If so that would be extremely L.T. and the USD would continue to drop and Precious Metals could continue to run. If you look at August, the USD was often choppy and had a very ‘pop & drop’ pattern too, so THAT time became hard to judge when a dcl formed too.
Basically, the USD is weak after that rate cut.
.
GOLD has been strong since that rate cut, and it broke out Monday and continued higher Tuesday. This was only day 10, so Gold can continue higher. This is Bullish.
.
SILVER is Obviously very bullish as it runs up and along that 10sma or even the 8 ema. Silver is above $71 and climbing. You can see that when it broke out it did a small 7 day consolidation (red arrow). As it ran higher, then next was a 4 day stall (blue arrow). Then a 3 day chop (Green arrow) and now it is in a 3-day vertical ascent. If this continues without a pause, it will be a parabolic run and could make a blow off top in the future.
.
GDX broke out and is running slowly higher too. Miners gapped open higher on Monday and many of then dropped and closed that gap, before bouncing higher into the close. This is likely day 11 of a second daily cycle, so we could expect higher price, even into day 20ish, but the Miners are choppier (So far-that can change). Miners could surprise everyone and ramp straight up into the end of the year too.
.
SILVER LIVE at 7 a.m. : One simple ‘measured move’ has been taken out, but fib extensions do measure up above 75 too. This really is getting extended, but it can continue under current conditions.
.
No doubt about it, The Bulls have regained control. After our dip into an ICL, the markets rallied higher, dipped into a half cycle low (Miners put in a dcl) and now we have what is often called a ‘Santa-Rally’. This can last into the end of the year and into the start of January too. Enjoy Your shortened day of trading!
.
Note: With the half day of trading, markets close at 1 p.m., and I am just letting some positions ride. I will be travelling today and not enjoying the markets at all. The markets are closed for Christmas, but they do re-open on Friday for a full day, so I will have a report on Friday morning before the markets open. If you celebrate the holidays, may you enjoy the time off and hopefully you can spend some time with your family (& friends). It is what is important to me. Enjoy & Safe travels too!
.
~ALEX
.
BITCOIN is on day 33 out of the November lows and it has been unable to hold up above the 20 ema. The MACD is rising, so we’ll see if Bitcoin can gain some traction, but so far it is weak compared to the general markets.
