Eventually it’ll get tired, but for now…

JULY 3 ….    Part 2  Some of the set ups from Part one (Open this report & scroll down for Part 1 July 1) I still see as valid like GOGO, TEAR, and a few others. Others, like the 3D stocks, burst higher & now one can watch for an entry as they ‘test’ break outs. NOTE:  If Markets head into a “Correction” – these Tests can fail.  If the Markets remain healthy- Could be buying opportunity.

To start:  A few more charts of possible Trade Ideas & a quick  “lesson”.   As I write & Chart (7:00 A.M. EST) Silver & GOLD are dropping fast. I see Silver like this…no worries yet-

 

SILVER CORRECTION 3

 

This next chart shows that a correction is healthy & GOLD is still fine too…

 

 

GOLD  as of JULY 2-  a correction to $1300 is normal  (lower is acceptable too)

 

GOLD July 3

 

I want to do a quick “Lesson” on the Running correction appearing in SILVER as shown on our first chart.  Notice how this running correction appeared after repeated sell offs? Read what I’ve written on the chart to explain it. It looks much like the current consolidation  in SILVER.

 

 

Running correction

 

It played out like this before topping…

 

Running correction 2

 

 

Will SILVER do that if more shorts “cover” or BULLS start piling in?  MAYBE…but we need also to note that SILVER is quite “overbought”

It already had the short covering & POP in JUNE. Its as overbought as when it topped in Feb…so I am including this chart to just show what I am watching in Silver with its current “Running Correction” . SILVER COULD POP to Feb Highs & top or just correct here for a few days.

 

 

SILVER Running Correction

 

 

I was watching SOLAR STOCKS and interestingly  SCTY  currently has a running correction too & is overbought. WATCH SCTY & maybe Silver does the same? It Popped yesterday & Reversed (So far)

 

SCTY

 

 

Solars ( FSLR, SCTY, SOL, RGSE, YGE, JASO, CSIQ, etc etc ) seem to be setting up above their 50sma & seasonally do well in Summer months  (See 3 yr charts for example) Obviously I cant post all of those charts, so just SCTY & YGE

 

 

YGE

 

Some other set up ideas …

 

 

DQ  recovering

 

CRIS

 

And please scroll down and see  TEAR, GOGO, etc   I also like URANIUMS and was watching URRE, URZ, URG, USU  (Unfortunately  USU broke out in a HUGE way yesterday & I froze watching it run away.  URZ and URRE  still look good to me.

 

URZ is a buy at the bottom of the channel & NOW, because it has broken out

 

 

URZ

 

 

IN my May/Early June GOLD report (You can look them up) I recommended some “SET UPS” in Miners.  Lets see how a few of them did – it may help give confidence to buy points in a chart pattern. These will be 1st my recommendation chart, then now…

 

EGO

EGO

1 month later

 

EGO July 3

NG

NG

1 month later

NG july 3

ANV

 

ANV

1 month later

ANV July 3

 

Hopefully that helps readers to see how some chart patterns are used in  forecasting that the Selling is complete and buying should begin. Getting in near the lows gives one the best %-Gains out of those lows.      Corrections offer the same “Buy set ups” and I plan on posting another list of good looking candidates soon.     For now, we have a 1/2 day & MKTS are closed for the 3 day holiday weekend.  Enjoy your time off & families, but please be safe!!  And thx again for reading along!

 

~ALEX    (Below is the original report with some valid charts remaining)

 

 

July 1, 2014        Well, this market has been running very well for a long time. Eventually it will get tired, but  as long as you keep that in mind and stay alert while you are trading, you can definitely still  trade proper set ups successfully.  I wanted to present some charts of some possible ‘trade ideas’ and leave it to the reader to choose one or two that they may also see as a good set up.

 

TEAR – Above the 50 SMA and the 50SMA is turning up, looks ready to move out of its base

 

TEAR

 

More charts ….

 

 

RIG – A rounding bottom seems to be occurring with a break out & “test”

 

RIG

 

KNDI WEEKLY & DAILY CHARTS….runs well when it gets going. Possible double top coming if Markets keep running

 

KNDI WEEKLY

 

KNDI DAILY

 

The 3D printer stocks run strongly . For your watchlist –  XONE, DDD, SSYS (currently extended)

 

XONE

 

I think the set up in GOGO is quite bullish

 

GOGO

 

You want JVET on your watchlist if these markets keep running! Its a ROCKET!

 

VJET

 

 There are TONS of these types of set ups out there, unfortunately  time doesnt permit me to draw them all up & post them. They can be quite profitable as trades.

Lastly I want to mention this. I Tweeted & posted here yesterday that I was seeing a low risk buy in GDX/GDXJ, thus many Miners and JNUG or NUGT.   This was the 1st buy point JNUG $24 area , for example… Another was the break out from the channel…

 

 

JNUG BUY June 30

 

But I want to point this out…

If you’ve read my other reports since the End of MAY….you know that I expected the 1st leg up out of “Meaningful Lows” in GOLD/SILVER/MINERS .  I then expected a consolidation, maybe a bull flag, and then a break out into a 2nd leg up , likely of equal length to the first leg up.

I am posting today that this move higher yesterday MIGHT just be a fake out type move higher to suck in more longs.  The consolidation then continues for a few more days.  What happens is-

1. After a quick burst higher (longs enter positions) 

2. Then you get a quick drop for a few more days or so to shake them out & Shorts get excited & they then go short

3. Next is  the REAL Move higher ( 2nd leg up)  where a reversal happens & “Shorts cover”  —  “Longs buy” and eventually “Chasers add”  

4. Then its –Wash – Rinse – Repeat

 

This is an example of a similar false breaks higher out of a bull Flag…so just beware that we may still be in the consolidation phase between leg 1 up & the 2nd leg that is to be expected. If so…Buy the next dip!!

 

 

BULL FLAG FAKE OUT

 

 Thanks for reading!  Please remember that the markets can change  (the VIX remains low), so while I expect that some of these ideas can become profitable trades — always stay alert and use stops after entering a position.

Best,

~Alex

34 replies
  1. Heidi Marie
    Heidi Marie says:

    excellent..thank u for all u do. especially luv the highlighted ‘signals’ so even my nit wit b4 coffee brain can easily spot them.

    • chartfreak1
      chartfreak1 says:

      Thanks for stopping by & for the feedback. ( I’m not as sharp without my morning Jo either) : ] I should have mentioned that On the “watchlist” ones, I want to see them reach the buy area or support areas on lighter volume – or they may crash thru. I often just Watch for a reversal.

      Best wishes

        • chartfreak1
          chartfreak1 says:

          Oh…you mean on the GOGO chart. Well, it means 3 things
          1. Testing my readers for alertness (you passed)
          2. I have a fat finger, the “U” is next to the “I” = ” Running Correction”
          3. seeing which readers will pick on me, then blocking them (JUST KIDDING)

          If it was a typo in the report I can change it, on the chart – its too much work, so we’ll leave it & test the others.

  2. Heidi Marie
    Heidi Marie says:

    excellent..thank u for all u do. especially luv the highlighted ‘signals’ so even my nit wit b4 coffee brain can easily spot them.

    • chartfreak1
      chartfreak1 says:

      Thanks for stopping by & for the feedback. ( I’m not as sharp without my morning Jo either) : ] I should have mentioned that On the “watchlist” ones, I want to see them reach the buy area or support areas on lighter volume – or they may crash thru. I often just Watch for a reversal.

      Best wishes

        • chartfreak1
          chartfreak1 says:

          Oh…you mean on the GOGO chart. Well, it means 3 things
          1. Testing my readers for alertness (you passed)
          2. I have a fat finger, the “U” is next to the “I” = ” Running Correction”
          3. seeing which readers will pick on me, then blocking them (JUST KIDDING)

          If it was a typo in the report I can change it, on the chart – its too much work, so we’ll leave it & test the others.

    • chartfreak1
      chartfreak1 says:

      Hey, If SIMONSAYS – ‘good stuff”, I’m not going to argue. : ) No, seriously Thanks SIMONSAYS (Did you see the VJET & XONE (DDD, SSYS, etc ) tho today. WOW! I wanted to buy the pullback, those are Rockets today. ‘ TEAR’ was a buy today

    • chartfreak1
      chartfreak1 says:

      Hey, If SIMONSAYS – ‘good stuff”, I’m not going to argue. : ) No, seriously Thanks SIMONSAYS (Did you see the VJET & XONE (DDD, SSYS, etc ) tho today. WOW! I wanted to buy the pullback, those are Rockets today. ‘ TEAR’ was a buy today

  3. deshy
    deshy says:

    Alex, dipped a toe into tear before it went on a ‘tear’–thank you! :-). I had thought a price target short-term of $6 before getting in. is that too pessimistic or have we come too far too fast? Again, thanks for the awesome work.

    • chartfreak1
      chartfreak1 says:

      Deshy – I tend to think it depends on the markets . If they went parabolic thru summer, I see plenty of upside . If the VIX takes off & markets correct strongly, I would think many of these would follow. ( I see that it POPPED strongly, then dropped. it May “test” the break out on that triangle that I had drawn. Should hold there tho). Thx for reading!

  4. deshy
    deshy says:

    Alex, dipped a toe into tear before it went on a ‘tear’–thank you! :-). I had thought a price target short-term of $6 before getting in. is that too pessimistic or have we come too far too fast? Again, thanks for the awesome work.

    • chartfreak1
      chartfreak1 says:

      Deshy – I tend to think it depends on the markets . If they went parabolic thru summer, I see plenty of upside . If the VIX takes off & markets correct strongly, I would think many of these would follow. ( I see that it POPPED strongly, then dropped. it May “test” the break out on that triangle that I had drawn. Should hold there tho). Thx for reading!

  5. jv2009
    jv2009 says:

    Hi Alex, thank you for the awesome charts. Is MVG on a buy already or it’s better to wait till the cycle lows hit early next week? TIA.

    • chartfreak1
      chartfreak1 says:

      JV – That is a tough call. The reversals in some silver stocks were strong today. Look at FSM (new recent highs) CDE (no pullback) EXK & GPL = bullflags. Since we know we are very close to a Cycle low, one could buy a starter position & add later on any pullback or break out. (Click on the mini charts if U see them)

      An A-B-C up leads to $13+ , Put MVG on a weekly and see where that leads to ($13) ; – ]

      • Cason
        Cason says:

        Alex, great charts – thanks for sharing. Stalking TAN for an entry next week into Solar. Cautiously optimistic on silver and gold miners. Have a great 4th.

        • chartfreak1
          chartfreak1 says:

          Thank You Cason-

          I could be wrong, but there is a chance that TAN will pullback to its 50sma first, I’d watch to see how it approaches that area. It COULD just burst higher, but the 2nd bounce here looked a tad weak. (click on the chart)- Thx for reading!

          • Cason
            Cason says:

            Alex, really appreciate the follow-up. TAN banged off the 50 this morning. I scaled in a 50% this afternoon at 41.62 – not a perfect entry but $3/share below where it was Thursday. Updated chart was key!

          • chartfreak1
            chartfreak1 says:

            Thats a better entry for sure…however Watch it carefully. I didnt like the high volume with the sell off today & it “MIGHT” follow the mkts down some more. FSLR & JASO closed below their 50sma, so Need to consider that & TAN = The MACD crossed down too…so basically, it DID drop as I thought, it DIDNT drop the way I like (light volume) so it could go further. Best 2 U

  6. jv2009
    jv2009 says:

    Hi Alex, thank you for the awesome charts. Is MVG on a buy already or it’s better to wait till the cycle lows hit early next week? TIA.

    • chartfreak1
      chartfreak1 says:

      JV – That is a tough call. The reversals in some silver stocks were strong today. Look at FSM (new recent highs) CDE (no pullback) EXK & GPL = bullflags. Since we know we are very close to a Cycle low, one could buy a starter position & add later on any pullback or break out. (Click on the mini charts if U see them)

      An A-B-C up leads to $13+ , Put MVG on a weekly and see where that leads to ($13) ; – ]

      • Cason
        Cason says:

        Alex, great charts – thanks for sharing. Stalking TAN for an entry next week into Solar. Cautiously optimistic on silver and gold miners. Have a great 4th.

        • chartfreak1
          chartfreak1 says:

          Thank You Cason-

          I could be wrong, but there is a chance that TAN will pullback to its 50sma first, I’d watch to see how it approaches that area. It COULD just burst higher, but the 2nd bounce here looked a tad weak. (click on the chart)- Thx for reading!

          • Cason
            Cason says:

            Alex, really appreciate the follow-up. TAN banged off the 50 this morning. I scaled in a 50% this afternoon at 41.62 – not a perfect entry but $3/share below where it was Thursday. Updated chart was key!

          • chartfreak1
            chartfreak1 says:

            Thats a better entry for sure…however Watch it carefully. I didnt like the high volume with the sell off today & it “MIGHT” follow the mkts down some more. FSLR & JASO closed below their 50sma, so Need to consider that & TAN = The MACD crossed down too…so basically, it DID drop as I thought, it DIDNT drop the way I like (light volume) so it could go further. Best 2 U

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