Little Changes

Not a whole lot has changed since the weekend report, but we can review the little changes that took place and see if it changes anything in our big picture outlook.

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NASDAQ may 1- The Wedge pattern still had wiggle room

You can see on the next chart that on Monday there were minor changes…

NASDAQ gapped open and reversed lower.  In the past this has caused minor bouncing.  See the orange boxes. We may or may not bounce around, but there is still upside room in the wedge over 5100 too.

SPX – Looks like it wants to drop before trying to break out again

IBB – I stated that it could break down like last spring when I saw that heavy volume weeks ago, but it possibly just consolidated and recovered the blue line today already.

OIL –  Still acting correctly and showing strength , not even pulling back yet as it pushes resistance.

XLE     this looks like a consolidation setting up to  breaking higher again.  XLE is up 50cents pre-market as I write, So energy stocks must look bullish?

Many Energy stocks still look very good to me.  I have mentioned HERO & REXX for example,  and both look continue to move higher. Others like SDRL ,KEG, BAS, continue higher. It is a bullish sector, as expected.

REXX – This was April 30 – Price is now higher than this chart (ready to break out?)

$NATGAS –  Bullish

XLF (financials)  actually looks good and JPM, BAC, MS, GS  look bullish too.

The USD  reversed from its sell off Friday and climbed today.   GOLD/SILVER/MINERS ignored it.

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GOLD DAILY – Is that a daily cycle low?  Being L.T. , it may top within 8 or so days, so lets just keep that in mind. I want Gold to at least move above its 10 & 50sma  SOON.

GOLD WKLY– Something to keep in mind.  If this fails, it could roll over like MAY 2014 ICL  (Green Box) .  This is where I wonder if Miners can resist the selling like in 2001, as mentioned in our weekend report.

SILVER WKLY – I am watching for a break out or break down,  Silver seems strong so far, not selling off with Gold. I want it over $17 SOON.

GDX WKLY–  I am watching to see if GDX can reach the top of the channel and 50WMA.  That might be an area to sell.

GDX DAILY – The Miners have a bullish set up  (So far), I am still long.   GDX remains  $1 above the 50sma,  RSI is over 50%.  Lets see how this unfolds.

Like I said in prior reports,   I see so many commodities looking like they are bottoming and being accumulated.  This makes me wonder if the markets will reach their wedge tops and sell off for a bit, while money rotates to commodities.

Recently I took another look at a few COAL stocks.  The weekly set ups are getting bullish  (believe it or not). The set up in

BTU –  is very bullish. It can drop 1 more time, if it does, Its an easy buy with a tight-ish stop at the trend line.

ACI WKLY- is also Bullishly setting up.  ACI is $1.00.  Look how easily it could run to $1.50 when it’s ready.

Lets look at some trade ideas.  Sometimes at the beginning of a week,   we see trade set ups that we can watch or enter that week.   We have some traders here that like to quickly trade stocks or scalp possible runs higher.   MOST of These are not BUY & HOLD for months.  You could have done that with the energy stocks if you could handle the waves without getting sea sick. These are trades to watch daily / sell a pop / etc.

Did you miss the URANIUM run?  They have pulled back and some are setting up.

URRE- seems close or ready with todays reversal.  Double bottom and the MACD & RSI show divergence.

CLD ( ENERGY) –  This stock was just basing out. Earnings came out and volume exploded the past 3 days. If I was going to play this I would likely take a partial position now  (Partial  in case it pulls back,then I would add again if the volume was light on the pullback). It should stay above the blue box now,  maybe even the 50sma .

AFFX is consolidating and may POP higher soon

HUBS caught my eye.  The consolidation is not only tightening, but it has $12 potential.

INVN WKLY-  Earnings came out Monday

I also wanted to quickly mention some Miners again. I am pointing out that they are building what looks to be constructive bases. Others are already breaking out & running higher.  Lets take a look.

For the Big Picture-   I have already mentioned that I love LONG BASES,  they can really run when they get going. Heres an example

TRQ

As a reminder:

AUY – I pointed this long base out before

When these break higher, they have built up enough energy to  just run & run, like some of our energy stock bases have.  SO I think this is a beauty, especially for those that do not like to buy a stock that is under $10.

BVN WKLY – It has been in a tight range lately. Some may accumulate knowing that there will be ups & downs. Other can wait for a break out

BVN Close up- it can break out now  ( or above $12).

IAG is getting into a squeeze play too.  Its on the Watch-list- I believe they release earnings after the bell TODAY

I am watching GOLD/SILVER/MINERS closely. I am still long from Last week, because the immediate set up is good  (GDX  just kept climbing with GOLD selling off. It moved above the 50sma, etc  )

So those are some observations thoughts and ideas for Tuesday. I still see bullish set ups in the Energy sector, and Miners still have a bullish look to me  ( but we all know that can change quickly, so Stay Frosty if you are in that sector  long or short ).  As time plays out that sector will become a little clearer, but I see constructive bases that have been building for months.  Uranium stocks have finally pulled back , as have other commodities.

   I mentioned STEEL stocks  and AKS has been slowly rising on good earnings.  X got hit a bit on bad earnings.  Did you see ZEUS after earnings last week?

ZEUS– buy a gap fill , trend line test if we get one.

So we have spotted Bullish sectors long before they looked it by observing & buying into bases in Energy last January and again in March. I am watching other sectors for future opportunity if things play out, for now they are trade-able  ( Miners).   Commodities all seem to be bottoming and this may be “The Summer of  Stuff’ to invest in.  I’ll keep my eyes open to the possibilities.    BEFORE buying anything,  you should try to do due diligence and see when they release their earnings.  ANYTHING can happen with earnings,  good or bad.   You can easily do this by entering the ticker in Yahoo Finance & skimming the news  for earnings release .    Thanks for being here at Chartfreak!

~ALEX