Friday the 13th- A Simple Warning

There are times when we need to take note of a few cautionary signs within the markets that we are trading in. Let’s take a look at a few of those signs that are popping up now.

I posted this chart of the vix as a warning sign. This is a 5 year chart and we are in an area where temporary market tops have taken place or years, so we want to be mindful of that. In the next few weeks, the markets could experience increased market volatility and toppy action.

So with that in mind…

 We would need to at least be cautious with our long positions. Can they remain bullish if the markets drop? That remains to be seen. The charts that I have been posting of CLF, VALE, MTL, GGB, CENX, etc are look bullishly set up, but we do need to at least throw up the caution flag and see how things move going forward. USE STOPS, MENTAL OR HARD STOPS PLEASE.

The next cautionary note is the USD. I have been pointing out the 50sma as a possible dcl target.

Jan 11- I showed that a slight break of the 50sma, and then a reversal is possible.

We now have a slight break of the 50sma and a Reversal candle at the 50sma – a cautionary note for any with high leverage that cannot stomach a 20% down day in JNUG or NUGT. We could get one.

WTIC – I expected a drop to the 50sma for a daily cycle low in oil too,  so was this an early dcl, or is there further downside to go? We’ll know soon enough, but this MIGHT just be a back test of the wedge break down. It is also a cautionary note.

GOLD – So what happens if the USD just put in a daily cycle low (DCL)?  Gold often puts in its daily cycle high. That DOES NOT mean that Gold will crash down, but it is a cautionary note to expect a reaction of some sort.  Maybe this ‘IF’ we just saw the daily cycle high?

OR MAYBE THIS?  You just have to allow things to play out.

GDX –  The same with our Miners, I have repeatedly said that maybe we will just get a back test of the 50sma. We can watch for that as the dollar bounces, and hopefully it holds.

Today is Friday and the US markets are closed on Monday, enjoy your Fridays trading and have a great weekend! There are a few trade discussions after my sign off.

~ALEX

TRADES:

At the end of yesterdays report I mentioned TMQ and posted this chart. Itis a metals company that hasn’t run like CLF, VALE, etc ( yet).

TMQ –  It improved on Thursday and I just have a good feeling about this set up. It looks like it is building strength . It ran up over 400% last spring and a small run like this would be a 100% gainer.

CORY mentioned BLDP in the comments section ( thx Cory).  We traded this last spring, but I lost track of it for a while, so when he mentioned it I pulled up a weekly chart.  I kind of love this weekly chart.  Oversold and back testing the recent break out & 50ma.  It is a good set up.

I had a report that discussed the medical marijuana industry recently.  I posted this chart and mentioned that they are currently selling “phyto-Bites” –  Soft chews for Dogs wellness,hip &  joint pain, and anxiety in pets. They reported that their sales have increased greatly quarter over quarter.

EDXC –  Dec 27th and I thought that this was ‘just starting’ at 4 cents, and holding the 200sma nicely. This was a good entry point.

Updated Jan 9th at 6 cents. Up 50% from the base.

EDXC –  EDXC has actually almost doubled since that report and could go higher from here now or after it forms a handle.  A handle would be bullish and one could add to their position within that handle too.

EDXC WEEKLY –  The company is growing quarter over quarter, and this is the potential. From 4 cents back to 30 cents?  Well I certainly like the story and this base so far.

Cautionary note on MJ stocks:  That article specifically said that this is not a ‘get rich quick’ investment.  It is a fairly new industry now where laws have passed allowing the medicinal use of this product. Growth in this area could result in higher prices over time and a small investment could go up 100%, 400%, 1000%, or bankrupt.  Proceed with caution 🙂

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CENX broke higher today, up 15%.   Here is the big picture of CENX.  Again, I have longer term investors here looking for a place to park some funds.  CENX bottomed last January and I had been reporting on it all last spring. $2.50 to $11 and a 9 month consolidation,  Break out in November and back test complete…it looks ready to move higher again.

This is just an interesting pattern that I noticed last weekend on the weekly chart for NAK.  I thought that the public offering was going to change it, but so far, nothing has changed.  We get 2 weeks higher and a 1 week drop week after week.  Such a good chart this has been. Please read the chart.

I took a starter position in a company that works in developing & consulting services regarding Nuclear Energy.  I took it because the charts look constructive and have Popped a few times recently, with a possible rounding base. I am using free money from my URRE trade.   If the Uranium stocks are bottoming and Nuclear Energy picks up,  this company could possibly benefit.  Looking at the charts, it is still basing and so I would recommend others may want to wait until it breaks out & runs. A watch list candidate?

LTBR WKLY – This stock keeps running up to overhead resistance at the 50 ma (weekly chart) with is currently about 1 dollar higher, so a run there would be excellent. It is oversold and that is big volume coming in at he lows, if this breaks that resistance area, the upside could be great. The MACD is rising while price is dropping, and it seems to be at the lows of this rounding base.  

WEEKLY

Let’s zoom in to a daily

LTBR DAILY –  SO I may be early or pleasantly surprised in the near future, but I took a small start position as a ‘hunch’ or a ‘gut feel’ and am going to try to let it ride for a bit. I am in a flat base with a rising RSI & MACD, volume Pops are coming in to the upside. It is NOT a Uranium company. Please read the chart. I’m not necessarily recommending this yet, but maybe put it on your watchlist. Again, I used some of the gains on my URRE trade when it more than doubled.