Friday June 23

 

SPX – We are really well along in the entire intermediate cycle, so I would expect this daily to top and become L.T. and begin to drop. We are overdue for an ICL, but these markets have just been pure bullish.

 

NASDAQ – You can clearly see many of the ICls in this chart, but recently the bulls have been in complete control and a recent ICL is not there.  We are at the lower trend line, so even though it is a ‘buy the dip’ area, a break down could begin the drop into an overdue ICL.

WTIC – Thursday was interesting, because Oil has a somewhat bullish set up forming here. The trading range for Thursday  was held within the Wednesday range, and this can lead to reversals. A BREAK ABOVE THE 10 SMA is a safer place to enter, this could still fail. A small sideways move at the lows similar to the one in May also allows the 10sma to drop lower, so the BUY could become lower.  Still using patience here, I am not jumping the gun.

PATIENCE has paid off, many energy stocks are on sale.  We did not miss a move in Energy, and buying too early would have hurt.  Take a look at  WLL for example.  It has been cut in half in just the last month of selling.

 

 

XBI – This is likely a topping candle and it has completed an initial target move.  This could bull flag or drop back down and test the break out area.  I believe that the pullback will be a buy.

This is why the pullback in XBI & IBB is likely a buy. This was Wednesday…

Thursday –  A drop would be a buying opportunity, and a break out & run is not out of the question.

 

GOLD – Gold has put in a swing low ( unconfirmed at this point).  Trading over $1259 or especially a break & close over the 50sma at $1260 should signal a dcl. THEN WE MONITOR ITS STRENGTH.

GDX – I DID take a small trade position, since I have been showing 2 scenarios and one indicates a possible ICL in May and this would be the start of a 2nd daily cycle. If the bull run was to start now, you have plenty of time to take a position in some of these Miners.  If this is going to drop into an ICL, it should become a very big buying opportunity.

GDXJ – GDXJ gapped over the 10sma, and this is what it did in May, so I wasn’t worried about a gap fill right here.   We see higher highs and higher lows, that is short term bullish in technical analysis.  The MACD HISTOGRAM might be signaling weakness on each bounce.

GG DAILY –  I’m watching GG.  Can it break out?

GG WEEKLY  – If it breaks now, it would be bullish and I would expect it to run to overhead resistance.  A falling wedge break out is bullish.

GG WEEKLY –  A drop soon would changed the wedge to a down channel.   I am worried that it might break and find resistance at the 50ma, but usually a move out of these set ups is strong  ( see the last ICL break  in Dec).

NEM WEEKLY –  Lets look at Big Picture Miners again.  NEM is a bullish set up. We have not missed a big move at all, but this consolidation could lead to a very big move in the future. We still have time to be patient and avoid draw-down.  I can picture either a POP or Drop from here, can you?

NEM –  A POP or an  ICL drop. Both should lead to good buying opportunity.

CLF –  I used this chart to show that many commodity stocks still look to be consolidating at lows.  A bottoming process where price eventually runs out of sellers and buyers take over.

INFI – I own INFI and my position was smallish as it broke above the 200sma,  so I did decide to add yesterday near $2. So far the 10sma will be my stop,  this should have strong support with the 50 & 200sma together.

VSTM –  VSTM has been rising, it looks to have put in a shake out. Breaking the downtrend is a buy, and your stop is placed below that line or the rising 50sma.

VSTM–  When I first bought VSTM, I used this weekly to show what I liked. VSTM is breaking from a long base and a gap fill would take it to the $4.50 area.

 

 

WKHS – One of our ‘buy’ points. I mentioned that the initial target for me was the 200sma, although it could break out and continue higher later.

WKHS –  So I sold Thursday.  This was NOT 50% like I wrote on the chart  🙂   Sorry about that.  I thought that I bought my first position at $3.00, but when I looked it up, it was actually closer to $3.40, so a 40% gainer. The pattern played out well, but it did require patience with a consolidation sideways for a month plus.

The SOLAR Stocks have been rocking, as pointed out in yesterday report with  SPWR, CSIQ, RUN, VSLR.    I spotted this in the morning and bought it and posted this chart in the comments with 2 initial targets.  I went in with a good purchase at 85 cents on this break out, because the solar stocks were all popping.

Over an hour later,  RGSE was already up 15% and at the first target, but no one was selling based on what VSLR and RUN have done.

RGSE  then ran up 30%+ at one point during Thursday, and tagged the 2nd target.  I did sell some there, but I will show you why I didn’t want to sell it all.

I didn’t want to sell RGSE because some of these solar stocks are experiencing short covering, buying, and a complete loss of control by the bears. This is a chart of VSLR.  Day after day it just keeps running.

SPWR – I posted this in Thursdays report.  This was the next best buy in my opinion as it consolidated to support. I mentioned that I bought CSIQ & SPWR neat $7.50.

SPWR – And Boom. look how oversold this still is.  I didn’t sell any, since this could keep running like VSLR.

And I did put this in Yesterdays report too.  The potential is big over time if the solar stocks are breaking free from a bear sell off.   Think about  the 3-D stocks that I pointed out , when they broke free  ( see charts of DDD, SSYS, VJET, etc as a reminder).

CSIQ from yesterday,  I mentioned that I bought this break out and that it should continue to run in the solar sector too.

CSIQ – My initial target has been met, so it MIGHT  consolidate and do what  WKHS did, or it just might continue running.  I did not sell, since another possibility is that we may see a bull flag or a rising wedge or some other bullish consolidation.

 

CSIQ WKLY –  I posted this in Thursday mornings report. THIS is the reason that I want to hold on longer.

Again, the reason that I didn’t want to just sell yet the pops,  these solar stocks below just TOOOOK OFF and kept running.  No bull flag or consolidation yet.

 

 

See also JKS, JASO, SOL, YGE, and so on.

SOL –  The next best thing?  I wouldn’t doubt it.

JASO –  Not a bad set up either for the longer term, if the sector continues to break out.

 

 Thanks for being here at Chartfreak, I think we have some EXCELLENT trading coming up. When prices get as beaten down as they are in the Energy sector, it almost looks hopeless,  but when Oil puts in that yearly cycle low, many of these will spring back and we can capture good % gains.   We also now have the Solar sector on fire, possible blow off move in the general markets, nd the precious metals market ( Miners) are setting up for what does look to be strong moves higher.  We have needed to be patient to preserve funds, but when the runs start,  the gains should be excellent.  patience will be rewarded.  Enjoy your Friday trading, enjoy the coming weekend, and I’ll see you in the weekend report!

 

~ALEX

 

I will be throwing out occasional reminder of stocks that I think would be able to benefit %- wise from a parabolic market run.  These are a few mentioned recently, there are more that I think are currently setting up too.  These are great for the longer term investors like Chris used to discuss in the comments section.

 

AMD –

TWTR –