Who Likes Giraffes?

We do! 120% in 4 days.

And though they are rarely seen on a regular basis in the markets, we have been spotting them left and right , even before the raise their heads to look around. 

Lets review the Markets and then discuss the Precious metals sector a bit more.

SPX – From the weekend report, no real change. The markets sold off a little more.

BKX – This hasn’t changed either, it is still weak and ugly.

WTIC – High volume selling has me staying out of Energy for now. This is not buy the dip.

NATGAS – Natgas is due for a pullback and sold off Tuesday.  I have 2 possible targets to watch for. As price sells down, it becomes clearer.   #1 – This would be a deeper sell off to the 200sma over time.

NATGAS #2 – A sell off to the 50sma and finding support in multiple areas.

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GOLD, SILVER, & MINERS

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GOLD -Gold wants to break above the Brexit highs, and I still expect $1400 or more in this intermediate cycle.

SILVER – Quite a surge, well beyond my conservative targets.  That #5 could be the temporary top for this run.  Look at the Brexit burst on the Gold chart.   You can see that Gold then meandered back up to those highs. Will Silver do that?  It is very overbought, so it is hard to say. That peak looks like a temp top, but may get tested  ( It also could bull flag in this medium sized  giraffe neck).

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GDX – That looks like a ‘spinning top’, which can be a topping candle. They can just be a short term top of indecision, but we have seen them off and on lately, and not act as a top. If this is the start (day 8) of a 2nd daily cycle, we may just continue higher.

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The Miners basically have been doing their own thing, and a stock picker can make excellent money that way, if they know what to look for.  I traded the Miners run from 2000 onward, and I do know what to look for.  Instead of all miners running higher at once, we are seeing various ones take turns, so you can ride some higher, jump out with solid gains, and jump back into the next possible runners.   The example is VGZ, MUX, ASM running fast, and then XRA, THM, AAU, AUMN popping, etc. 

And of course  TRX. It already ran from the $0.40’s to the $0.80’s, but I wrote an article discussing not selling those initial pops, until you get the follow through.   TRX became a $120% gainer in 4 days!    I’ve already discussed the longer term possibilities for all of these too ( See AG, CDE, PAAS, NEM, RGLD, etc). 

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SO the question is, “What looks like it could be the next possible runner?”  I have already been pointing a few of them out in detail for a while, so hopefully you are already positioned. I am and have been adding to my positions.  Below I will list those that are still looking good to buy and a few new ones. IF you are waiting for a 5 cent dip or try to get too cute, you may miss them.

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EXK – June 15, I sold my EXK to go elsewhere, but it still was a valid set up. Now I think it is ready to go.

EXK NOW – Still a good buy as it prepares to break out.

GPL -From the wkend report. I’ve been discussing GPL from the $1.50 area as it flags.

Up >8% today with increasing volume, this could take off quickly I.M.H.O..

GPL Potential – I could see this double or triple over time.

NOTE:  See that Mid Point Consolidation / bull flag at $1.75 ?

MUX had a bull flag at $1.75 too.  It is now $4.25  : )  Please excuse typos.

I sold a partial of my  TRX at the end of the day.  I didn’t want to sell it all , for reasons mentioned in a report about selling last week. These defy logic.  Again, compare the MUX chart above with the TRX one here. We are still near the lows, do you see the potential? This could just bull flag and continue higher later similar to what Mux did.

In FACT – XRA  has a stellar base and it Popped last week too.  I mentioned that I wasn’t selling that first pop in the report on lessons too. Lets take a look.

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HUGE BASE –  Maybe we’ll just get a bull flag instead of a pull back?

Remember this chart from the report with the lesson in it?  The A-B = C-D move in April pointed out in many miners like XRA.  I drew that bull flag possibility after the POP from $0.80 to $1.45

And today I see one. So far so good, but no guarantees. By not selling the extended ramp higher from $0.80 to $1.45,  I may get a 2nd leg higher out of it.

Side note: XRA is not as much of a ‘buy’ here as it is a “Hold” if you own it.  If the flag breaks upward with strong volume, a fast/ experienced trader could scalp it for a day or two.  The 2nd run could out do that first one.

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GSS  #1– Some look at this chart and think that it is struggling at lows and looks ugly.

GSS #2 –  This is how I look at the same chart. That was a huge run from that small base, and a consolidation has formed a larger base. GSS has good potential and…

GSS – Zoom in and the set up looks quite bullish as it breaks out.  It is a buy here, I think it also has potential to run strongly once it gets going again..

BAA –  BAA broke out Tuesday too. This is a buy.

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We really enjoyed some huge gains in the first run that Miners made, from mid January through the spring.  After sideways consolidations and bull flags also consolidated the gains, we are seeing some amazing moves again. The BEAR has left the Mining sectors and the BULLS and even Giraffes are popping up, but you’ve got to be in it to win it. Those waiting for deeper pull backs are missing the opportunity to ride this Bull.  I hope that the above set ups help, most have been mentioned here repeatedly.

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Thanks for being here at Chartfreak!

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~ALEX

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EDIT – A reader here has mentioned TCPTF to me for a while, a copper / Gold company.  That chart really looks good right now.  Below are 2 charts that I drew up for my reports in April, followed by a chart from Tuesday.  I didnt post these in April , because even though it had an excellent base, the set up wasn’t quite there for continuation higher yet. It is also  OTCBB at this point.

I think it is starting a run now and can be a good scalp for an experienced trader.  (Thanks Chuck!)

TCPTF WKLY – LONG TERM.  I didn’t end up posting this chart at $0.50 , because I didn’t think it was quite ready for follow through yet.  It is now $0.60 and looks ready to move quickly higher.

TCPTF – This shows the base and I do like the look of it.

TCPTF DAILY – This runs quickly and the run already started.  Experienced traders can still scalp good gains or even buy & hold for a while, since the base is healthy looking.