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Alfonso’s Daily Note

MicroStrategy Leads the Way

October 7, 2024

Today, I joined my friend Patrick on Chart Request Live, discussing all the ticker symbols from the chat.

Click here to watch the replay.

One major topic we discussed at the end of the show was crypto and some equity vehicles to gain exposure to it.

One that stood out was MicroStrategy $MSTR, which continues to show impressive relative strength.

 

 

As you can see, MSTR is consolidating above its prior cycle peak as it flirts with new all-time highs.

Meanwhile, Bitcoin continues...

Alfonso’s Daily Note

Record Week for China

September 27, 2024

Chinese equities are surging like never before in history.

The iShares China Large-Cap ETF $FXI rallied over 18%, marking its best week ever.

We call this a "momentum thrust". Such extreme readings often precede rallies and tend to occur at the beginning of new bull cycles.

Here's the FXI chart with the 1-week rate of change in the lower pane:

 

As you can see, this is happening after a test of a critical support level, right at a shelf of former lows.

In addition, price is reclaiming the VWAP from the 2021 highs, which means bulls are back in control for the first time since then.

One thing we know for sure is that seeing the most beaten-down areas of the market spring back to life with such vigor is not a bearish development.

In fact, I think it’s time to embrace these high beta stocks.

They are on the rise.

And as technicians, we want to take advantage of these new uptrends.

Just look at what Sean McLaughlin,...

Alfonso’s Daily Note

Silver Is Breaking Out!

September 24, 2024

Precious metals continue to show strength as both gold and silver hit new highs in today's session.

First, it was gold leading the charge, and now silver is making its move.

Let’s take a look at this silver futures chart:

 

As you can see, silver is breaking out of a multi-year base, with momentum accelerating sharply to the upside.

After a failed attempt earlier this year, buyers are giving themselves another chance to push prices out of the box.

If this breakout sticks above $30, we want to be aggressively long not just silver, but the broader precious metals space.

There is a growing list of opportunities, as well as plenty of vehicles and various methods we can use to gain exposure and add leverage to this theme.

The options market is one way we can do it.

Strazza just put an options trade on a silver miner for Breakout Multiplier members this morning. If you're not already a member,...

Alfonso’s Daily Note

Best Trades On The Sheets?

September 19, 2024

It has been a great week in Chicago for the Portfolio Accelerator so far!

The entire All Star Charts team and friends are gathered, analyzing charts, having insightful discussions, identifying trade opportunities and delving into trading psychology.

A main theme from this morning's discussion was the importance of setting aside our home-country bias.

As investors, it's crucial to recognize that there are valuable opportunities abroad that we cannot afford to overlook.

One country in particular that stands out is the MSCI Argentina ETF $ARGT.

Let’s take a look at the chart:...

Alfonso’s Daily Note

Gold Continues to Shine

September 12, 2024

Gold has been getting a lot of attention lately as it presses against its highest levels in history.

This is an exciting time to be a gold enthusiast.

Just look at what the price is doing.

Here's a long-term chart of gold breaking out to new all-time highs:

 

After completing a decade-long base earlier this year, the price ripped higher, nearly in a vertical line, reaching the 161.8% Fibonacci extension level.

Following that rally, the price coiled in a tight pattern, absorbing some of its gains, but it’s now back on track with a strong breakout this week.

The bottom line here is that it’s...