Just Take A Look

For more than a month now, following weeks of choppiness and sell offs,  I’ve been pointing out some nice set ups in various sectors. We are now seeing decent trades and some follow through, so today I want to point out an area that I think we all should take a look at…

For starters, we’ll take a look at ‘The Bigger Picture’.  This is where you really get to see if these stocks are really in a bottoming process or are they just going to continue selling off.  I should also mention that I knew my time would be limited on Monday night to put together this many charts, so I started in the pre-market on Monday morning.  That means that some of these charts do not reflect what happened on Monday, but I will cover some of them after Mondays trading too.

 

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ENERGY

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I have pointed out that even though I have not been actively trading the Energy sector, I have been watching some stocks that seem to be leaders.  I pointed out  ERF, RES, AREX, SPN , etc as examples,  so lets take a step back and get a better look.

 

ERF WEEKLY – After a run from $2 to $10, ERF pulled back to almost $6 and has pretty much stopped selling off.   It then began consolidating  along the weekly 50ma in what is, so far, a bullish set up.  I captured this chart before Mondays trading.  Anyone that thinks that all of the Energy stocks are just horrible, should take a big picture look at ERF.

RES WEEKLY –  Also captured before Mondays trading, you can see that RES is also consolidating some nice gains, and is actually loosely climbing higher from March to now.

 

SPN WEEKLY – Captured as of last week,  SPN seems to be trying to break out off of the bottom,  and it is somewhat similar to what we saw in Jan 2016.

 

RECENTLY I also did a segment on Uranium stocks ( and URA) setting up bullishly.  I still own UEC from that report.   Let’s take a look at URRE, since it didn’t react right away. I like this set up.

 

URRE –  Step by step, this Lithium & Uranium stock is starting to make good progress as it breaks above that 50sma. I think that this could still be bought here as it breaks above the 50sma.   See the weekly chart…

 

URRE WEEKLY –  URRE is very oversold and is pushing through resistance.  It has had some false starts in the past, but now I think that it is ready to move higher.

 

DNN –  I have posted a few charts of DNN over the past month, and it also has been slow to get going.   This chart from June 30th was showing that it broke free from the downtrend and was now forming  a bullish flat base.  At that time- I envisioned a break of the 50sma, maybe a back test, and then continue higher ( Blue arrows).  The red arrow was if it would back test the break out.

DNN – Boom.  We got a nice 10% break from that round base all at once on Monday.  This may just keep running, so if you bought it, hold it.  It also might bull flag, and that could be bought near the apex.  I’ll cover that if it happens.

 

Since I had also done a  commodity report report,  I thought that I would step back and take a big picture look at a few of the commodities too,  to see if they are still bullishly aligned. They are.

 

 

AKS – AKS broke above the weekly 10ma and a down trend in June. It has gone up & Down sideways for weeks, and it could be forming a large cup here.  See AUG through Nov 2016 for a similar idea.

 

CLF –  A rounding bottom base, Clf is moving higher.

CGIX –  The action that we got from  VSTM was due to a similar set up that we see in the weekly chart of CGIX.  We caught the move in the spring in both  VSTM & CGIX,  and then next move higher in VSTM.  CGIX should also move  higher if it breaks out from this flag. I watch it every day for a break out ( Watch list)

 

HBM WEEKLY  – As of last week,  HBM was still moving higher

HBM –  A week ago (July 10)  I recommended it as it built steam to break out here

HBM –  As of Monday, it is $1 higher.  If you own it, I’d just ride it out, but what if I was looking for an entry?  I don’t chase a move off of the 50sma like this. I would wait for a pull back to the 10sma and hope for the best.  buying it Tuesday at $7 and watching it drop to $6.16 or so  in a normal pull back to the 10sma is uncomfortable.

TGB –  I’ve owned TGB for a while & actually added on Monday ( yesterday). I have been pointing out a possible break from this inverse H&S.

TGB –  Monday it looks to be starting to break out, and was up 5.51%.

TGB WKLY – Stepping back  ( I captured this on Monday pre-market) this looks quite bullish on a weekly chart.

WRN –  WRN tried to make a move Monday, but ended up with only a 2% gain.  This is a bullish base & I like the set up.   Let’s step back and take a look too…

WRN WEEKLY – A break above $1.07 would be bullish in this big picture.  A ‘close above $1.07 on a weekly basis’ is actually what is considered bullish,  but since many of the commodity stocks are doing well, I would expect that this will move higher soon.  Keep an eye on it, or buy it and wait it out with a stop?

 

 

MINERS – I had a segment on Miners early last week entitled, “What am I seeing here…”   Let’s look at a few more Miners…

 

RGLD –  This was in that report, and it is a long bullish consolidation type set up,  right? Almost near last summers highs already.   Would you like to see its cheaper twin?

 

IAG WEEKLY  –  This set up is very similar to RGLD, since it also is back at the summer highs. It is more of a ‘w’ pattern on the weekly chart. I would think that IAG will continue to out perform, barring any ‘public offering’ or any other bad news.  This looks set to break out to new highs.

AUY WEEKLY –  Then we have AUY.  It is now actually trading below the Dec ICL lows, however, this is being viewed as bullish by me.  It has formed a bullish descending wedge and is at the Apex.   If this breaks out & returns to the summer highs, it could almost triple.  The daily chart still needs time to get above the 50sma.

DRD WEEKLY –  DRD is also below the Dec ICL.  This was a super performer in 2016 running from $1 to $9!  Those gains are still being consolidated, but even a run to the 50ma on this weekly chart is 20%+.  A run higher & a break out would add much more.

AG WEEKLY –  This is from my report last week, so this was last Monday July 10, but it is worth looking at the big picture again.  AG also returned to the Dec ICL, but this base could be explosive to the upside, once things get going.

So the BIG PICTURE VIEW of Miners, Commodities, Uranium stocks, etc can help us to see that we are on the right track and our current trades and trade set ups have even more potential as time goes on.

 

The Medical Marijuana Stocks

 

RECENTLY I POINTED OUT THE PROGRESS OF MANY OF THE MEDICAL MARIJUANA STOCKS TOO- Along with a warning that these stocks trade exceptionally fast and may not be for everyone.  Also since these are still in a consolidation phase, some of the readers here may want to really limit position size.  We discussed that even though these can run up 20-30% in a day, THEY ALSO  CAN DROP 20% IN A DAY while moving inside of a base or consolidation.

 

SO I was looking at these on the weekend, and I could see that they were again getting set up to pop & possibly run higher.  I bought CNBX last week, and almost immediately added on Monday morning when I saw on my intraday charts the action that was taking place right out of the gate.   Let me just say that Monday set this sector ON FIRE, and I was commenting on it all morning in the comments section.

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This was one of my comments later in the morning after already pointing out some of these companies that were acting bullishly.CNBX was moving higher,  CNAB had just started to move higher , CANN & AMMJ were beginning to also join in.  Slowly 1 after the other would start gaining, so you could watch for that again on your list of MJ stocks…

 

Let’s take a look at just a few of these charts below , and you can look up some others to see if they are starting to respond.  These companies got explosive.

 

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NDEV WEEKLY –  This was ‘only’ up 6% , but by looking at the weekly chart, we see a multi-week, multi month consolidation after massive gains at the end of 2016. By massive I mean under 1 cent to $1.50! The past few weeks has seen NDEV really tighten up and this looks ready to break out  ( put this on a Watch list for those that might be interested in scalping a trade on a break out?).

 

 

 

CNBX at 11 A.M. –  I added when it was already up 6% in the first hour.   When it was up 13% I grabbed this weekly chart, and it showed me an important break out was happening after a tight multi week consolidation. Breaking above the 10 & 50 weekly MA was bullish, however…

CNBX  after the close–  It did not stop there.  That is a clear solid break out, now up 32% in a day. Look to the left of these charts and you can see HUGE moves on these in a week.  Maybe it is too late to comfortably chase this one,  but are there others?

 

Possibly the next best looking set ups

 

CNAB – CNAB started to break out Monday too.   Yes, this tiny pop was a 16% pop, but it still looks like it has further to go. In June it ran from roughly 50 cents to $1.25, over 100% in 3 days.  Last August to November it ran from 1 cent to $3.35 – CRAZY huge gains.  If this sector is turning bullish again, the gains can be very good.  DO NOT BET THE FARM, YOU DON’T WANT TO LOSE THE FARM.  Be safe, limit your position size to reasonable trades or avoid this sector.

CANN DAILY –  In my ‘comment’ posted above , I said that CANN was up 2 cents, but as you can see, by the end of the day it was up 11 cents.   I think that this one is just getting started too.  It is just now about to break out from this triangle or Bull flag. In June,  This doubled in 6 days !

CANN WEEKLY – If it breaks any higher,  it is breaking out from the down trend. Notice again that that little POP in June was a 100% pop in 1 week.

 

GRNH WEEKLY – Very oversold and could get some follow through.

 

NWGFF – I have actually owned this one and EDXC for almost a year now as an experiment. It is now trapped under the 50 ma  (weekly), but if it gets a surge of buying and breaks that area, it also breaks free from this down trend.   That is a tight multi week base, so it could do just that  (watchlist?).   I own this one, but honestly I would look at some of the others for now, at least until this one  breaks out.  I bought it when it was roaring higher last year.

 

So for todays report I basically wanted to just review a lot of the areas that we have already been trading in. I wanted to see if they are continuing to act bullishly, since some are still holding Commodities, Miners, Uranium, etc  ( myself included).  You may recall that in April & May I was discussing how difficult & choppy trading was, and that ‘follow through’ was short lived & minimal.  That is due to the ‘base building process’  or the ongoing ‘Bottoming process’.  Now it does appear that many of the Commodity stocks have broken free from their bases and are now beginning to trend higher. Others may be starting to break free now  ( TGB, WRN, ETC).  All of the weekly charts above tell a similar story, and it seems that we may be seeing a little rotation into  “things” or “Stuff” like-  Steel, Uranium,  Copper, Miners, Fertilizer, etc  ( do you recall these fertilizer charts below?   Take a look at POT, MOS, AGU, IPI, etc now,  they too have continued higher).

POTASH July 10 –  see an updated chart now and you will see that it had follow through, along with MOS, AGU, etc.

IPI JULY 5  From $2 to at $2.42 in June  ( $1.50 in March to $2.42)

IPI – A great base formed, now $2.56

IPI –  Yesterday at $2.72 –   With this base, IPI is still a buy if you ask me.  It is just moving a bit slowly at this time.  I still own it.

 

I do not know if this means that ‘things & stuff’ are going higher and the general markets will begin to stagnate due to rotation,  or does everything move higher by taking turns a sector at a time?   What I do know is that these big Picture Charts show me that we are still trading in a bullish place, and with commodities and Uranium still nicely set up,  it makes sense that Miners could be next.

 

~ALEX

 

 

A few of our readers have told me that they just do not have time to scroll through the comments section after work.  For those in that category, I didn’t want you to miss a post by one of our readers. He posted the biggest % – gainers from the run higher of the Miners in Jan 2016.  This does NOT indicate that their performance will repeat, but it was very interesting to see the gains that many made, so I have copied his post below.

 

On Monday,   ‘SonOfGud’ posted the gains that occurred in the last run higher from Jan 2016…