Thursday January 8th – More Dips

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SPX -Not much to say on a day to day basis. We dipped on Wednesday, but the MACD and RSI remain bullish. Dips that last for 2 or 3 days can give a buying opportunity too. Dips are a bummer ‘real time’, unless you were hoping for a dip to buy a good set up. 🙂

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DRONES, ROBOTICS, and AVIATION seem to be doing very well out of the ICL:

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For example, DPRO ran from $6 to $9 already and broke above the 50sma, but a dip to back-test the 50sma would be a buy opportunity.

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NVDA – I wanted to point out to the ‘Buy & Hold’ crowd that NVDA was strong coming out of the last ICL (I think we all knew that!). But it started to consolidate those gains an chopped sideways for months. It sits on the 50sma now, and has moved along that 50sma for 2 weeks. This may be the buy & hold buy opportunity with a tight top.

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I had PGY in the report 2 days ago, and it broke out yesterday above the 200 & 50sma as a buy.  I do own it.

 

Rare Earth stocks have been running very well.  Yesterday UURAF just started moving too, reversing off of the 200sma and breaking through the 50sma.
It is a Pink sheet, but it also has good volume. It has been choppy, so if it dips down, that would be a good entry. 

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FLY is under the aerospace sector and its starting to —Fly. It appears to have been an IPO in August and opened up at the $73 area, but sold off all the way into the ICL. I don’t own it, but I think that I would have bought it at the reversal right on the 50sma at $22. I say ‘I Think I would have’, because watching it drop from $30 to $22 may have held me back. It has BIG swings, but if or when it pulls back, I may start a position.

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The USD is back at the red 200sma and right above that is the 50sma, so we still have overhead resistance, but the USD has gained some strength here. Notice the Green arrows.

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FROM YESTERDAY – 2 CHARTS AS A REVIEW ON POSSIBLE CYCLE COUNTS FOR GOLD:

GOLD – I want to share one thought about Golds cycle count. We were due for an ICL. After that Gold formed a cup and in that handle around day 24, it looked like a dcl , because we then ramped up higher again for 17 days. Now we have a dip into day 20 and we COULD be starting the 3rd daily cycle. THIS IS MOST LIKELY, since it somewhat matches Silver, but notice this…

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GOLD also formed a triangle and often when we get a triangle at an ICL, we start the count at the low before the breakout. If I did that, we would have a day 29 dcl, but this would only be the 2nd daily cycle. Interesting. That doesn’t match Silver, but Silver is also very hard to read, due to its’ ramp up higher. Let’s take a look…

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GOLD LIVE – Gold pulled back on Wednesday and it is down right now as you see from the 2 red candles. It sits right on the 13 sma, which has been a support level of sorts, so right now we have the USD pushing on the 200sma heading higher, and Gold dropping lower. Will they both continue in this direction or reverse? That is what I am watching today.

 

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THIS CHART IS ALSO FROM YESTERDAY:

SILVER also has a very mild looking dcl at day 27, and then a 2nd daily cycle with no real deep dips until day 19. So Silver would look like it is starting daily cycle #3. If I DIDNT count that mild day 27 pause as the DCL , we would have 46 days out of the low without a visible dcl, unless I then use day 18. So, cycle counts are just not clear due to the strength of this run.

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SILVER 6 a.m.: Yesterday Silver started to drop and then it sold off and started to bounce back. This morning Silver sold off to below yesterdays lows and sits at the 13sma, so this set up seems important too. If it reverses higher here, we may see another run to new highs, if not? We may have a double top and the MACD is starting to roll over.

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NOTE: Yesterday Silver stocks and Gold Miners dropped and started to recover with Silver, so today we can watch and see if they sell off and recover again with Silver-or not. Also, by the time the markets open Gold and Silver may bounce off of the 13sma, so we can watch and see how Miners look at the open.

 

 

GDX – As you can see, Miners dropped with the metals and then started to recover, so basically more sideways chop for this sector, but SOME individual Miners may be doing better than others. The MACD has divergence and is ready to cross up or be rejected. Todays selling may reject it.

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Even though the bulls are in control, we had a dip yesterday and that is to be expected. That occasional choppiness is why they say that the ‘Bull’ can knock us off of our ride. A dip that lasts for a couple of days and leads price back to support though, may offer a buying opportunity, since a ‘buy’ and a stop can be used after a reversal takes place. We’ll see what happens with the precious metals sector today, we may have a double top in Gold and Silver, and that would form a L.T. daily cycle. I am definitely keeping an eye on this sectors current set up. One more run(?), or is it Done? We should know soon.  Enjoy your Thursday trading. 🙂

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~ALEX

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BITCOIN dropped this week and today is the 47th day out of the Capitulation low. This is a normal back test, but we are running out of time for this to reach that green 200sma, since daily cycles are roughly 60 days.

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IREN, WULF, RIOT , and a few others did run up with Bitcoin, but they reached resistance and have stalled at this point. If Bitcoin reverses and runs quickly to the 200sma, these could break out and move higher too.