Archive for year: 2014

Oct 3, 2014    Just a quick note….It looks like its going to be a good day for traders.  Yesterdays late day reversal in the sell off of the markets has set up some very beautiful charts. Looking at the 50sma, many of the recent pullbacks landed and reversed there.  It was a time to start entering low risk positions.  For traders, the pullback and reversal in many of the high energy MOMO stocks is the place to be right now.

With the JOBS REPORT,  the dollar again took to the sky, and GOLD/ SILVER got slammed, is it just a final capitulation slam?  Volume in GDX  for the first hour is extremely high.    There is a lot of fear in the Metals market and cycle wise, we were due for a low, but  this selling was not exhausted yet.  I tried to take a few entries this week and go stopped out.  Still, this may be a final slam worth watching  , from the sidelines .

This quick note is just to say what I would look at if I was watching  Metals / Miners for the next trade.  I would look for :

–  For now GOLD /SILVER will open at new lows…Watch for Miners to slam down too , and then do they :

  1. recover?

      or

  2. close near the lows? 

BY the end of the day – we are watching THE CLOSE here.     If Metals  & Miners  close at or near the lows of the day….more downside likely.  The weekly charts will be ugly.  If they reverse higher, if they recover to break even for the day or green,  the weekly charts will still be  reversal candles.  It would show that they keep slamming it down and buyers are entering. It would shake out LONGS.

  Yesterday I was watching  many stocks that RAN UP FAST and have pulled back.  Here is just an example of a few , if you want to pull up some interesting charts are :

      RADA  (  LIZA mentioned this in the comments section yesterday)  it sat right down on the 10 sma with no selling volume yesterday ). I bought this one.

     I have also watched  COUP  double bottom for weeks, it is looking excellent. I bought this one .

     NETE was interesting after a deeper sell off than I expected. The volume is starting to come in this morning…It may or may not be quite ready yet  (its still below the 10 & 20 Sma and kind of basing sideways this week) Watch for a break above that 10sma?  

    OTIV – popping today, but the selling has been a slow steady bleeding. Doesnt look like a “real’ move yet.

     MBLY I mentioned in prior reports  and also RALY.…both acting as expected in that report.

     SCOK just popped back above the 10sma…I think it may be a buy now  or soon  (I would like to see it pop with more volume than today).

     CGA – No volume today and it got a little freaky the past few days, but the weekly chart is an excellent recovery.  ODD daily chart tho.

  I will get a  report out this weekend  to point out some nice set ups . After that multi day pullback to support,  its not too late.  Often stocks that take off in the morning slightly sag during lunch, then they get bought up in the final hr and close at the highs….so Mid Day may offer an entry too?    In fact –  I may add  to RADA,  and COUP later this morning.  They are pulling back intra-day now. 

Best wishes!

~Alex

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SEPT 25   I have NOT even mentioned Miners lately.  They did not look ready, they weren’t acting correctly.  Depending on your daily cycle count, Miners may be very deep in their count, due for a bounce.  Some have them only on day 25, deep enough, but   I have them on day 36!  THAT is late. Today , we may have had a “Stop run” on the May lows. I decided to take a position, because at these very oversold levels (Seen on the chart below), we have had some nice rallys – Good %-Gainers.   Its only a LOW RISK ENTRY, because you cut positions if we drop below todays lows. Its high risk, because Miners have been selling off . Its a contrary trade set up.

Note the RSI & STOCHASTICS : 

-Then please notice that the MARCH bounce from these oversold lows wasn’t  a buy & hold for very long.

-Also note that the DEC 2013 lows took a while to bottom before rocketing higher.

-May lows rocketed higher.  What will happen here? I cannot say for sure, but it was a decent entry and I wanted to share why I took a position.

EDIT: I want to add that I got a BUY SIGNAL known as an RSI(2) on GDX Monday . Over 95%  reliable Buy signal