Friday And The Weekend

It is Friday,  the last trading day of the week.   Jobs numbers will be released,  along with the  Natgas Inventory numbers. I like to remind ‘traders’ and ‘investors’ that today is the last day to be positioned heading into the weekend. I am holding several trades through the weekend, but I have been over 50% cash for a while,  waiting for a solid buy set up to form in the Precious Metals sector.     Enjoy your weekend!

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SPX – Closing below the 50sma could be a shake out.  It was the last 3 times the SPX closed here. Either we sell down into the grips of a deeper ICL sell off, or look for a reversal and a close back above the 10sma  ( not just the 50).  Jobs numbers could affect the general markets.

I cut my hand last night and now I’m running late this morning.  I had planned on a rather large Friday report, so please excuse any typos,  I will not have time to review the report before I release it.  I want to release this by 8:30 Eastern time.  Thanks!

USD – We see divergence at the recent lows on the USD.

WTIC –  I am expecting an ICL in oil at one of these lows. This chart is actually telling me that the recent sharp drop off of the top in Oil is a little different from the last few. These recent lows may just  hold up. I’ll keep an eye on this chart.

XLE–  This chart also tells me that although the energy stocks are in a long term downtrend, this break down is different from the rest, so the lows in XLE should hold up too.  A break above the 50sma would be bullish.  Being patient with Energy stocks is still recommended, until we get some follow through.  This has been a Choppy sector.

2 things that I am Pointing out here at the 2011 lows –

1. The final rally in June & July ( Final daily cycle) in OIL looked convincing, It moved higher for an entire month,  but then rolled over. ( So the recent 7 day rally does not mean that THE LOWS are in place, we’ve seen the same convincing rally out of the lows at each of the last lows).

2.  The final lows were almost broken again by pennies, so you could say that the ICL and then the first daily cycle looked weak. If this daily cycle drops to the recent lows, it doesn’t mean that it is weak.

GOLD from Thursdays report–  A run to $1240 doesn’t mean that the lows are in.

GOLD –  We could be seeing a bear flag.

GDX –  I’ve been expecting more of a drop , but Triangles do get tricky with false break outs and they also mess up cycle counts,  so I will keep an eye on it.

GDX –  This chart tells me that the selling or break down is real so far.

I’m still recommending patience in the Energy and Precious Metals sector.  It has saved many of us from the frustrating choppiness that has been found in those areas. The Miners will be setting up for what should be a very nice run higher soon enough, but for now the pain on the down side of an ICL type sell off is not advantageous.

Now just charts of Trade set ups

VSTM –  From yesterdays report,  I do like the consolidations in certain Biotech stocks like VSTM & CGIX. I traded these ones last spring & did well.  It was breaking out & was a buy.

VSTM – During the morning I captured this chart of the break out & wanted to post it in the comments section, so I wrote that VSTM was up 14 cents and getting good follow through but…

VSTM –  It moved very quickly higher & higher, and suddenly we had this chart by 1.49 p.m..

VSTM –  At 12:30 I captured this weekly chart showing a GAP that could fill up to $4.40ish over time. VSTM ran to almost $4 yesterday alone.

CGIX–  I posted this chart in yesterdays report, but CGIX dropped …

CGIX-  Even with that drop, I’m keeping an eye on this one.  It could still be in a long bullish consolidation that breaks out higher like VSTM did.

RGSE-  From July 3 when the Solar stocks were popping higher. THis could be attempting to break out above that 50sma.

RGSE was up over 17% at one point,  and closed up 9%,  right at the 50sma.  It may be trying to break out again now.  I bought over a week ago & still hold it, hoping for that break out & run.

APHB-  I pointed this out in the comments section yesterday when it was under $1.  Volume is swelling and it is popping from a tight base.  I DO NOT know the company,  this is just a trade based on the chart.  Usually the first attempt above a 50sma is a short pop & drop to back test it,  but I thought that a quick gap fill overhead could be a $1 to $1.75 Pop.  We’ll see if there is anymore upside left in this.  It might be risky to jump in now,  but I do have some ‘day traders’ that like to use intraday charts to scalp trades,  this is probably only for them.

IDRA-  Another Pharma stock that had a good run in the spring.  This looks like it is pushing against resistance and getting ready to break out & run higher.  I think that it could be a good trade here above the 50sma, with a stop below $1.70 once it breaks out.

IPI –  I bought IPI based on the weekly chart and this daily chart. My stop would be loosely under the 50sma.

IPI –  Weekly chart of an inverse H&S.  This has been a long consolidation and could have good upside if this sector ever gets going.  I may just be in it for a short term trade .

ONS –  I do not know the company,  but this looks pinched and ready to break out for a quick multi day trade. The blue line possible target is over $1.50, price was $0.95 to $1.15 yesterday.

UEC –  This is how I am looking at UEC   since discussing the Uranium stocks. I own it above the red trend line.

EYES JULY 3rd–  I liked the POP in ‘EYES’.

EYES –  After a lONG BASE, it is still looking like it wants to make a run,  and it tagged the 200sma yesterday and bounced higher.  I do think that this will run higher once it breaks from this base, but exactly  ‘when’ it will do that is hard to say.  The recent moves do not look big,  but the low yesterday was $1.19 and the recent high Monday was near $1.50,  so this can move quickly.

JPM- Look at the run from November through March.  The BANK stocks ( And XLF) looked like H&S patterns.  Now that they have negated that pattern,  these can run again, similar to last Nov through March.  I pointed these out as Bullish break outs in June when the H&S was negated.  JPM is on the way higher, and…

BAC – Bank Of America could do the same. Read the Chart please,  and maybe wait and Buy a pull back.

MGXMF – Kind of a special story….MAYBE?   I have followed this one for a while and they have invented a way to extract LITHIUM from waste Oil.  They also purify water and other contaminated fluids, so…  is this long consolidation ready to break into another run higher.  This set up is not for everyone, I’m sure that this is a higher risk category,  but the story is very interesting. a break above the 50sma could run in a big way,  and…

They just released this story.  Buyer beware, but it is interesting,  you can click the link below for the story,  or I have copied and pasted the stand out part of the story. …

MGXMF

MGXMF is pleased to report that engineering partner PurLucid Treatment Solutions Inc. (“PurLucid”) has filed a new provisional patent related to the recovery of metals and minerals from produced wastewater brine in the oil and gas industry. Patent rights have been exclusively granted to MGX for the life of the patent and focus on concentrating metals and minerals such as lithium, magnesium and boron from produced oilfield brines.

The invention relates to recovery of metals and minerals from produced or wastewaters from the hydrocarbon industry. These waters are produced in large volumes annually throughout the hydrocarbon industry, are a considerable logistical and environmental liability for the companies producing them, and according to the claims herein, can be treated making some portion of the water reusable while also extracting metals and minerals during the treatment process.