Is Your Basket Empty?

As mentioned in last nights report, we saw an explosive move in Commodities yesterday one day before the Fed Decision. That caught a lot of people who were not in front of their screens flatfooted. Last nights report also pointed out that it looks as though what we have been expecting to occur during the Fed Speech is beginning to play out.  Lets go shopping and see if we can find some low risk entries developing in OIL and Precious Metals.

Lets re-visit WG.  Rather low priced, I recommended this beaten down Energy stock here at $0.80 and $1.00 in early Sept.

It Popped and ran to $1.80 rapidly and now has formed a bull flag type pattern, landing on the 10sma.  You could buy this with a stop under the 10sma as a low risk entry. 

Lets keep shopping…

I mentioned that I like the looks of AREX even though it hadn’t done much lately.

It POPPED strongly Wednesday up over 20% at one point.  Notice that the chart still doesnt look like it has done very much. That shows it’s potential i.m.h.o.  This is a buy. In June it was $7.

DNN is a Uranium company and they have been hot & cold lately, but this set up looks good because it sits on the bottom currently. Low risk with a stop right under the lows.  ( NOTE:  DNN is under $1.  Some prefer to avoid cheap stocks).

WPX – Off of the lows in Aug and then consolidated gains sideways above the 10sma. Inverse H&S?

QEP -just starting? Look at that potential if Oil has bottomed.

LGCY  & UPL–  At the lows.  Read the writing on the chart

UPL

Some MINERS exploded yesterday. We saw beaten down low priced juniors jump 10,20, 25%!   AXU jumped 35% in the past week . Lets look at some Miners for an example of what to look for when buying. We are seeing a pull back in futures this morning for an opportunity.  Some still may wish to wait until after the Fed Decision is released and markets calm down.  I still expect the reaction to be in both directions based on past releases. 

EGI Wkly– I point this low priced stock out for its movement in recent times and its possibilities over the long term when Gold bottoms and begins trending higher. Notice the strong tun at the  March ICL. ( only 450%).  It is moving again, up 23% yesterday alone.  Why important?

EGI WKLY –  longer term the potential is for a move over 1000% from here if and when The Precious Metals markets bottom and begin the move back to former highs.  Note:  the word ‘potential’ must not be confused with the word ‘guarantee’.  They are very different words.  😉

ABX – formerly $50 ,  currently at lows.

GG – still at the lows, but look at what it did on the 2nd daily cycle in Dec.  Good potential , and it is  a well known company if that is what you look for.

AUY – read the chart

AU –  I also looked back at the performance in the 2nd daily cycle last DEC for this one. IIt double bottomed back then, this time it has shown signs of strength. 

So we are seeing a pullback in Futures. It may be a buying opportunity if you got home from work yesterday and looked at charts and thought that everything that we had been waiting for was already taking off with out you.  Please keep in mind that after the FED Decision is released,  I still expect instability and high volatility.  In what way?  No one really  knows for sure?  I just know that often you get a strong move in 1 direction that looks very real, and then it reverses strongly in the other direction. Things can even end the day Thursday one way, and Friday you see no follow through.  It’s not an easy time to trade, but the best way to look at it is like this.

  We have been expecting lows in Commodities like Gold and Oil.  Temporary or possibly even longer term lows. The timing is right, the set up is even looking good longer term , and now the move is starting to play out.  Volatility at lows is common until the move gains some traction. I think a pull back today  or after the Fed is an opportunity, as long as Lows aren’t taken out again.  If lows are not taken out,  it is time to go shopping and look at some of the stocks that jumped 10,20 30% yesterday.    They may go on sale today & even tomorrow. 

Best wishes and I expect that this report and last nights report covers what could happen Post Fed today & tomorrow.  I’m not planning on a Friday report.  Metals and oil may be pulling back or running strong going into the weekend, but we have our parameters and game plan in place. Also recall that most of the past Fridays started off selling gold down and then reversed toward the end of Friday  (when no one wanted to buy & hold over the weekend).  Many Fridays are reversals in gold lately.  

For a starter shopping list, See charts above and also of    SSRI, PAAS, EXK, HL, NG, NGD, EGO, IAG, SLW, MUX, GSS, BAA,  etc.   Also  WRES, REXX, EXXI, GTE ( ready now?) XCO, LPI, WPX, AREX, UPL, BBG, BBEP, LGCY, etc.  Watch to see if they are above the 50sma?  over the 10sma? About to move over one?  Best wishes!

~ALEX