Feb 2nd – Pretty Well

Well, That went pretty Well, didn’t it?  🙂

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I’m not covering all areas of the Markets, because there really wasn’t a lot of change in the general markets from yesterdays report.

WTIC – Oil continues sideways, and kind of  looks like it wants to break higher, but…

XLE – You may recall when Oil looked weak, and I pointed out that the XLE looked strong, so I expected higher price.  Well, now we see the opposite. The XLE is breaking down below the 50sma, so I’m not comfortable trading Oil at this point.

GOLD & MINERS

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This is where I have been focused, and things seemed to go very well, considering that Wed was a Fed Meeting. I pointed out recently and even in Wednesdays report that all charts were bullish and I remained bullish going into the Fed Meeting.  The USD is still that fly in the ointment, since it is due for a dcl, but it has been quite weak lately.  Gold & Miners may ignore any bounce that the $USD puts in.   Let’s look at Precious Metals.

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GOLD – I pointed out the Timing Bands and in another chart the ICHI clouds indicating that we started a new daily cycle. Bullish and you really should still own your own Miners that we bought at the Dec lows.

This says that we started a new daily cycle too, and we’d only be on day 3 as of Thursday.

GOLD WEDNESDAY FEB 1 – It still closed above the timing bands after the Fed Mtg Wednesday.

GDXJ – I was watching the Miners when the Fed Decision came out at 2 p.m.  I had already determined in my mind what would be bullish and what would be bearish. This was my intra-day chart and I posted it in the comments section.  I stated that we’d like to see GDXJ close Green and not give up all of the gains of this break out into the close.

GDXJ – Closed above $38.  It is still pushing on the 200sma, and it really looks like it is going to break out.  Why?

Well I showed a few reasons why yesterday, but I’ll show a few more now.

RIC – This bodes well for GDXJ breaking above the 200sma, doesn’t it?   RIC was shown yesterday trying to break through the 200sma, and it succeeded Wednesday.  Owning RIC was also a good example of “not getting too cute” and selling your position after the 1st daily cycle. It did not offer a lower entry.

PAAS– Another nice little bull run. Good thing one didn’t sell PAAS after the first couple of weeks out of the lows.  It also did not offer a lower entry.

BTG – BTG is close to the 2016 highs. This is a good indicator that GDXJ should make it through the 200sma. BTG is also another Miners that shows why I didn’t want to be selling on the way up. There was no lower re-entry here.

GPL –   When I bought this at the October lows and it reversed there at the November lows, I was trying to convince readers that this could form a cup and actually double in a short period of time.  It was $1.14 at the lows that day.

Here GPL was breaking out near $1.40, a second buy signal .

GPL – It will probably finish that 100% move in February.  🙂  ( There are others like it ).

IAG –  Look for a stock that has simply consolidated sideways, and it will probably start another leg higher soon.

GORO – This is another example, and there are many like it.

CDE – And when we look at charts like this discussing that they can return to 2016 highs …

CDE –  You want to remember this too, if the Bull market in precious metals remains. We could be continuing a potentially very profitable move in many of these miners.

So things went very well after the Fed Wednesday decision was released. The bullish look with many  Miners not only remained, but we also saw more follow through in several of the leaders. Other miners  that have been consolidating sideways still look set up to break out higher.  If you followed my advice, you bought some Miners in December at or near the lows, and did not get too cute by selling your positions when we experienced a the wiggles.  I recommended holding a good amount of MIners because we may not get a deep enough dip to re-enter if you sell them.  We look to be starting the 2nd daily cycle and we should be able to continue to add to our gains as they move higher. Last week I actually said that I was fully loaded after seeing several Miners acting more bullishly than others  ( See  PAAS, RIC, BTG, ASM, etc).   The charts in today, yesterday, and other recent reports should help build confidence in this sector. Yesterdays report alone had bullish charts of  GSV, PAAS, ASM, CDE, AXU, TGD, BCEKF, CALVF, MXLGF, VITFF, TGD, etc., but of course we also faced a Fed Wed.  That is now behind us, you may find some laggers with good set ups if you still have cash.  I pointed out IAG & GORO in this report, we also have TGD, SA, SAND, EGO,MUX and others that look ready to move higher.  Maybe the ones still near  their lows like VGZ, AUMN, TRX, and so on will move with this move higher.   You may want to reference past reports for some ideas.  Enjoy your Thursday as we see what the Post fed Thursday has in store for us.

~ALEX

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NAK –  I just wanted to point out that NAK dropped to the 13 sma and reversed again  ( it has done this in the past).  Notice the Red Arrows – This could be the middle of the consolidation, since I have seen this in the past.  It also may be about to move higher, but the point is that when this happened in the past, it was at the lowest point of the consolidation as it now worked its way higher. NAK is definitely another position that we have traded successfully, but you may not want to get too cute.  Lower entries are hard to come by, unless you time it just right.

PLG –  Some like PLG will likely play catch up  ( platinum).

TRX – I just had this in yesterdays report and it turned higher yesterday.  It looks like it may rejoin the move higher.  Please read the chart.

Here I showed the potential upside when TRX gets going, and how consolidations are important to explosive moves. A triple from here if all goes well  ( like it has with GPL).