Caution: Sometimes It only looks comfortable

June 9,2014   …  Continuation of the earlier report  The reason that I want to mention possible long set ups (Even though I expect a dip in the major indexes)  is that    1. Some do not like to short the markets , and they’ve been very difficult to short anyways.      2. if the Markets do correct, these set ups can be checked during the correction for possible strength – IF they just go sideways or pull back mildly AND  the Markets just put in  a normal correction, they may become buy candidates . I also expect MANY MORE set ups will develop as overextended rallies in individual equities correct.  I will cover those in the future.      At this point, please note Biotech…


BIOTECH – The “report” is written on the charts  (May pull back with the markets, though it did already Correct strongly) I would expect it to return to the break out around the 50sma




After that HUGE correction…Some Biotechs are recovering




So Are there others  setting up bases & breaking upwards too ??


I like these set ups, because when they break from the bases, they run fairly well. First I will show some that have left the runway  (You can possibly buy a pullback ) and some look ready to launch from their bases.  (F.W.I.W. – I am showing traders some possible trade set ups…At this point I assume you know where to BUY / Where to set your stops / Where to sell? )


TKMR – Has had several BUY points.  The Break from Wedge, Breaking Above 200sma the 2nd time , and now its trying to break Above 50sma for example? It MAY drop back to the 200 sma if we get a correction, see if it holds as support & Buy.




IDRA – similar set up to TKMR  ( I bought this above the 50sma Today, I may be early if it corrects here since it is still inside the base & under the 200sma.  If it continues basing, I may sell and add lower)




INO – Also could be bought now or on a test




To see examples how these set up ‘could’ run, see  ZIOP, GALT, CGIX ( It broke out but stalled today)   And for other possible biotech bases forming see  BEAT, maybe OXBT, TROV.


The VIX was also alerting that we are near a top!  This was from MAY 22 it read 12.03.  Well it bounced and then dove down below 11 last week, so again!  Caution warranted.




MANY Other nice “set ups” formed last week in the Nasdaq, but I didnt post those set ups. Instead, as I mentioned in Part 1,  I TWEETED  that I expected a slight pullback and was going to post some set ups after the pullback .

Since I am still cautious of an overdue pullback,  I am only going to post a couple of trade set ups here for now, just to show how some of the oversold stocks may be forming bases.  They may BASE out further if we pullback here.   I do plan on adding more later as they set up.


DANG looks like it is breaking from a base to me…




MOBI  is basing and looks like a possible buy on a pop above the 50sma




There needs to be improvement on the Volume & MACD if price does continue to recover.  I actually have an extensive list of potential Long candidates that look strong now and may set up nicely after a pullback, but I will post them then if they prove themselves at that time.    I also see some MINERS setting up nicely, ahead of gold. I like to see Miners start basing out while GOLD tries to establish its lows. It happened in June 2013 lows and at the Dec 2013 lows.  I have stated that I am expecting a meaningful low   ( either in this area or in a few weeks). I am also planning on posting some good looking set ups as they happen, before they rally.      As an example:


NAK today, which has been hated & had bad news lately , seems to be set up to break higher




I TWEETED  this last week   NG  at $3.26 – it is now at $3.46 & over its 50sma




    And Brazil – what a move this spring up 100% , and the set up says it wants to go higher again (Or soon)



I’ve decided to post this now and do a separate GOLD report a bit later too , before the open tomorrow .   For now I want to re-iterate that with these markets just rising higher & higher it may feel like we are missing out.   Unless we are entering a large Blow Off Phase, we are still overdue for and will get a pullback where many of the run away stocks can be bought cheaper on a pullback, if they are still acting correctly.  That’ll be the best time to look for proper set ups. (Today actually looked like the time to buy  SOXS, SDS, DRV, etc. )



Thanks for reading as usual, and please re-tweet if you think any of your followers would enjoy this content.


Best to all ~  Alex



11 replies
    • chartfreak1
      chartfreak1 says:

      I think it looks pretty good overall. Possible bull flag / triangle forming now- as long as Market pullback doesnt drag on it. Good volume pop lately too.

    • chartfreak1
      chartfreak1 says:

      I think it looks pretty good overall. Possible bull flag / triangle forming now- as long as Market pullback doesnt drag on it. Good volume pop lately too.

    • alex
      alex says:

      Hey ‘Bio Plays’… The answer is

      -IPCI looks good, but volume is really light and personally I dont like that. When they sell off, you cant get out fast enough. Also I would wait for it to move ABOVE the 50sma if I were taking a position

      HALO looks pretty good, filling an overhead gap, possible bull flag forming right here , HOWEVER even though These can really extend when they get going, this is a little extended )

      and ARWR- (WOW) this puked out big time a couple of days ago, but reversed and actually looks pretty good re-gaining the 50sma and sitting on the 20sma. Ths one moves fast when it gets going, doesnt it? :-]

      I cant post charts in the answer column here currently, but I will email you my charts drawn up as I see them if you want. I believe Your email is in the alert that informed me that you posted a question.

      Is there one you are looking at more than others? Or do you want all 3? No problem either way…I’ll get them to you in the A.M.

      Thanks for reading!! -Alex

      • bio plays
        bio plays says:

        Hey Alex, thanks for your insight…all three have catalalysts and im looking to trade the run up…looking forward to your charts

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