FRIDAY JULY 21

Today is Friday and this week has seen a lot of trades setting up and following through.  Let’s take a look at some of the action…

 

 

NATGAS –  Maybe we should look at a case of not following through first.  NATAGS looked bullish before the inventory report Thursday.  It popped and then sold off on Thursday.  AT this point, I would not want to see it sell down much further.  Please read the chart.

 

XBI –  JULY 5th  With an initial target  around $90, I thought that the IBB & XBI  could form a bull flag after that strong pop

 

XBI THE BULL FLAG consolidation- July 13

 

XBI – That consolidation continued into more of a rounding consolidation, but it looks to possibly be complete.  This looks ready to run to the $90 target area.

 

GOLD –  GOLD is on day 8.  This is where things start to get interesting, the way I look at things.  Only more time is going to tell us if this will just burst higher above the 50sma, or move around to the 10sma and bounce around under the 50sma, to break out later.  We need time.   I think that this does look good, and many Miners have been acting well too.

 

GDX – I pointed out a rising bear wedge.  If GOLD just bursts higher, I think that GDX will follow. If Gold remains bullish, but flounders around for a bit,  GDX could drop and then Pop.

 

GDX –  It may do this to drop from the rising wedge and remain bullish…

GDX –  This is what would really be bullish, but so far the move out of the lows has been at a slower pace.

Please remember that even though I am only drawing the bullish scenario for now,  Gold is on day 8 & it is still early enough to roll over & fail.  I’m thinking bullish because GDX (Miners) never broke the MAY lows on the above chart.  That is bullish. Also  I have pointed out various Miners that bottomed in May and have continued higher.  For now we have to watch and see how this plays out.

 

TRADE REMINDERS

 

WRN & TGB – I mentioned both of these as set ups that look very promising.  This was my WRN in yesterdays report, as a BUY above that 50sma.  Notice how “Boring ‘ this probably looked to many for the past 2 weeks.   Sideways, boring, weak?  I wrote on this chart that it was joining the commodity party.  🙂

WRN _  It did POP on Thursday and joined the commodity party.  Commodities look great.

IPI – I have now owned this for weeks and pointed out that it tagged that 10sma and looked like a bull flag this week.  It now looks ready to move higher again.

 

CLD – This was my JULY 12th chart of CLD.  It is bullish, but could drop & tag that the 10sma or the blue trend line near $3.50.

CLD – It dropped to $3.50 Thursday and this is the big picture chart.

 

Do you remember yesterdays lesson, “Buy the back test”? CLD put in a reversal near  the 50sma, please read the chart.

2 charts as reminders- Buy the back test

HBM & X-  Used to show a back test of the 50sma, price crawled along the 50 here, so it may in CLD too.

 

X – Tag & Run.

 

 

CHARTS  – CHARTS –  CHARTS

 

 

AMRS has been moving higher for 5 days. This COULD just keep running higher, but put this on a watch list in case it back tests the 50sma.  It is not very extended above the 50sma, so someone could take a small position here in case it keeps rising, and add if you get the back test.  AMRS is clean energy, this chart is bullish.

 

 

 

CY –  I have pointed this out 10 times, and it just keeps getting prettier to me. Large consolidations can lead to nice extended moves higher.

Do you remember my love of this type of consolidation on TTWO??

TTWO –  A long multi week consolidation breaking out can lead to nice gains.

 

TTWO – And look at that run 1 month later!

On July 5th I was actually pointing out another buy on TTWO

 

TTWO –  Thursday July 20  and take a look at TTWO.  ANOTHER consolidation and move higher off of the 50sma.   More than that,  Look at the run from Aprils consolidation.    CY is looking pretty good.

 

ERN – Energy stock  trying to break out.  It just ran from $1.20 to $1.65. It is on my watchlist, possibly to buy after it gains the 50sma.

FRTA –  This was Baytraders in the comments Thursday.  He said to put it on the back burner, I love what it did Thursday after a long tight consolidation.  This could just explode higher after a sideways move like this –  it seems that ‘sellers’  are not there.

 

 

MJ STOCKS – NEW ONES PERKING UP & REMINDERS OF OTHER SET UPS

 

PURA – Popping and making waves.  This little pop was 27% and guess What?  It was a break out over a week ago, and a back test of the 50sma this week.

MNTR – Trying to break out here, so this sector as a whole is showing a lot of bullish activity all at once.  That is bullish, so let’s zoom in…

MNTR – Pushing with volume and breaking above the RSI 50 for the 1st time since last spring.

 

REMINDERS of recent Pops –

 

CNAB –  This Popped over 100%  twice in 2 months, and is pulling back to possible buy points.

Is this going to become  a buy the back test at the 50sma candidate?

 

CNBX – This also popped over 100% in July, and could be a buy the 50sma back test candidate,  or…

CBNX –  This July 19th chart showing how the 10sma has affected price on CNBX, so price may stop on the 10sma.

CNBX  – July 20 and CNBX could tag the 10sma and hold up around there.

 

I know, I know,  Information overload.  Just pick 1 or 2 and look for the trade opportunity. A note at the end of the report may help too.

So we continue to see many stocks that were selling of and choppy  a few months ago setting up as trade set  ups, and I think that that will continue going forward.  I am looking forward to GOLD, SILVER , & The Miners revealing whether this is an ICL or not.  If it is, we are going to find their recent selling and consolidation / base building become very fruitful too.  Stay Tuned!

ENJOY YOUR FRIDAY TRADING !

 

~ALEX

 

NOTE:  Due to the longer bases and follow through in Commodities,  they feel like the safer trades. Look at  CLF, X, WRN, TGB, AKS, HBM, CENX, etc and you will see that their lows were put in quite a while ago, giving us confidence that the lows are in place.   Many miners are now feeling like a safe trade too.  Look at BTG, RGLD, IAG, GORO, etc , and you’ll see that their lows came in on May or earlier.

Energy set ups are still a bit riskier, with a chance that they could break down, since they are not above their 50sma yet,  so I always proceed with caution in areas that haven’t proven themselves to some degree yet.

 

BTG – Just an example that many Miners seem to have bottomed in May,  ride above the 50sma, and would be a safer buy for those interested.