Tuesday June 27th

In the last few reports I have been discussing a good number of  bullish  trade set ups  that have been forming after sell offs and consolidation periods.   In some areas, the entire sector seems to be reacting.  We will continue that discussion today.

 

SPX FROM JUNE 23 – The bulls and bears are battling, but this looks like a topping process.  We are due for a correction in the general markets.

QQQ – Monday saw a bit of a bearish reversal in the Q’s, and that MACD is not showing signs of strength.

I discussed in the weekend report that we are due for a steeper pull back into an ICL, and…

Pullbacks often lead to better buying set ups in a Bull Market…

AMD –  Pullbacks can lead to buying opportunity in Bull markets, so I will be watching for such opportunities if the General Markets pull back.  Maybe AMD does this?

AMD WKLY – Could AMD actually drop back to $10 at the blue line again and still be a bullish flag? It could.

TWTR – This as my June 21st chart of a large base in TWTR.  It is currently hit $19 on Monday and sold off a bit, so I’ll be watching these set ups going forward.

WTIC – Oil remains the same so far, so we NEED to be safe and wait for a break above the 10sma.  Many personal funds are getting chopped up attempting to buy each and every bounce that we have watched fail and break to new lows.   Personally , I Do now think this one may be the lows we have waited for, but patience still pays off.   I had a price projection last spring for OIL to hit $42 – we are there, and also I am starting to see possibly bullish things in Oil stocks.

UCO – Notice the similarity of these bottoms.  A break above the 10sma should indicate that the lows are in place. I’ll show you a good looking Oil stock later.

NATGAS from the weekend report –  We were expecting a break out from tight Bullish wedge.  NOTICE possible resistance drawn at the $3.10 area with the blue line.

 

NATGAS 6-26 –  We got the POP break out on Monday,  and $3.10 is the first area of resistance for a few  reasons.  Price may pull back there and try to break out again . Notice the March price action.

 

GOLD – From the weekend report,  I was looking for a break above that trend line & the 50sma

GOLD – We did not get it yet, and Gold broke quickly to a new low and recovered.  A new low means Gold is on day 33 or maybe day 1 depending on Tuesdays action.  ( I do not think that this was a day 3 failure since we did not have a ‘confirmed’ swing low in place). Gold over the 50 sma, 10sma, and the trend line starts a new daily cycle.

SILVER FROM THE WKEND REPORT – Also waiting for a break above the trendline.

Silver Dropped to a new low and that also extends this daily cycle.  A break out higher and above the trendline & Monday highs would indicate a new daily cycle.

GDX – As most of that GOLD & SILVER action happened, GDX did not sell off badly. GDX & GDXJ gapped down & moved higher, but fell no where near the recent lows. Miners still look to be on day 3.

 

I want to run through a large number of stocks that look to be setting up in a bullish manner. Please don’t allow this long list to overwhelm you, you do NOT need to own them all.  Pick one that you like, maybe 2 or 3?  This long list is being down for 2 reasons.

1. It gives our active traders and experienced traders a number of choices to choose from. They can make a watch list and follow these or trade a few that look ready.

2.  It highlights the fact that many ‘sectors’ that have been correcting and pulling back are now setting up to run higher.   So let’s continue to take a look at a variety of trade set ups in various sectors that have caught my eye recently…

 

AG – So are Gold & Silver about to break out above their trend lines?  If so,  AG actually looks like it could break out and do a nice run.  I would buy this break out, it may be best to wait for it to CLOSE  above the 50sma.

AG – THIS is a great looking chart at this point, isn’t it.  It has been on my watch list for quite a while. A break out higher looks quite bullish after a long consolidation of the 2016 gains.  I continue to monitor other Gold/Silver stocks, but I no longer own the GORO & GSV positions that I traded weeks ago. They are on my watch list.

 

UEC –  As a reminder, These 2 charts were the uranium stock that was breaking out last Friday from a solid base. I had them in the weekend report.

UEC –  So UEC  pulled back on Monday, but still looks fine.  It may just rest for a day or two, so if you were looking for an entry, it may have paused for you.  This pause could allow the 10sma to catch up, or price still may drop back a bit lower.  It still looks bullish with higher lows.

 

WTI –  This is another OIL stock that seems to be acting correctly.  I captured this chart last Friday, so lets look at Mondays.

WTI – Price dropped and reversed higher again, but it really needs a break above that 50sma before being bought. A close above the 50sma for a day or 2  should see bullish follow though.

 

 CLF – I captured this on Friday as it broke above the 50sma. It closed down 2 cents on Monday.  I mentioned recently that STEEL & STEEL STOCKS are looking good again,  so these would be in buy the dip mode , in my opinion.  AKS is also still above the 50sma.

 

CLF WEEKLY – So the weekly chart looked good too, but I did want to point out 1 cautionary note about a bottoming period…

 

Last September – October   CLF had a similar bottom and did a quick shake out before launching higher ( See the chart) .  Bottoming can be a process, but that daily chart above does look good. NOTE: After that shake out last October, CLF doubled in a couple of weeks.

 

 

SPWR WEEKLY – Solar stock SPWR could break out and run in my opinion. There is not a lot of resistance to the $14 area.

WNDW – I didn’t like the way this looked on a daily, after seeing  RUN,VSLR, CSIQ, and SPWR take off, so I decided to step back and see if it could become bullish in the future .  WNDW could join in after this consolidation. Notice how steeply this stock has run in the past, almost moving straight up.  WNDW remains on the watchlist.

OWCP – We discussed how many MJ stocks were beginning to perk up again after some LONG consolidations. OWCP is ( so far) holding above the 200sma. Zooming out…

OWCP – This one jumped in a big way in February, from todays price of $0.60 to $3.00.  and has consolidated since then above the 200sma.  I took a position in this one.  Even if it POPS like it did in April,  that 2 day POP was a double.

CNBX – I posted this chart after CNBX popped from 70 cents to $1.30 in 2 days!  It has remained on the 10sma for the next 3 trading days too, but has solid resistance overhead to contend with.

GV –  Do you remember when this stock took off and ran strongly as an infrastructure stock in November? $2.70 to $8.50!  It has consolidated gains and based out for a bit, breaking above a wedge.  It POPPED on Monday too, and closed back above the 50sma higher than it was when I captured this.  That is a bullish break, stop below the 50sma.  This could just run from here, however…

GV-  It is possible that the POP hit resistance and could pull back to the 50sma.  I will buy it there if I see that  happen.

CRMD –  I see bullishness in this base.  I THINK CRMD is going to pop & run, it just has that look.  It is only a 46 cent stock, but has solid potential with no resistance in that gap area.  I have done NO research on the company or why it gapped down, but I will have to look into that, because I want to own this one soon & catch that POP.

 

EYES –  Another Biotech stock that is looking bullish. The back test of the break out was the buy and it is also the 50sma. I like this set up and think that it has a good chance of upside follow through, barring any bad news.  I used to own this stock years ago and it did well back then.

Take a look at  CGIX & VSTM –  Those were 2 Biotech stocks that made great gains for those of us that took that trade this spring.  They are setting up after a long consolidation too, moving back above the 50sma.  BIOTECHS have been moving higher and remain bullish if you ask me.

 

LET’S TALK ABOUT NAK –   NAK is no longer acting bullishly. It is not horrible, but it could continue to slowly sell down.  It is not quite oversold and it did break below the 200sma last week  ( And I mentioned that I sold a good portion of mine).

I’d like to see this trend line hold and not close below the weekly 50ma. The weekly MACD is weak.

NAK – This is the slow break down,  and it could become a shake out, but we won’t know unless it recovers the 200sma, so for now I lightened up.  We could be forming a descending wedge pattern  ( bullish eventually).

  We went from a very slow period of trading and consolidation to break outs and runs higher in many sectors.  We are now seeing sector after sector perk up and some stocks are making very nice gains. We can watch these during pull backs and find lower risk entries, or buy some that are just breaking out from bases and try to gain some of the move higher there.  Oil and the Miners may join the move higher soon, so I will be watching for that too.  Patience during the choppy times can lead to profits during the run higher.    Enjoy your Tuesday trading!

 

~ALEX