Friday – Setting Up

When I was a kid and my mother was making Jello or a Chocolate Pudding or Cake, she would tell me that I should not be impatient. I needed to wait until it was finished ‘setting up’. That is where we are in the Precious Metals sector, and also some Energy stocks,  so let’s take a look  at the markets and then that area in particular…

Also today is Friday, the last trading day of the week.  Therefore, todays report will be brief, and I will be back home on Sunday to write a weekend report and continue to monitor things daily next week.

UUP –  I am using this for the USD. SO far what I would expect to be the ICL for the USD has simply jumped and gone sideways to day 9.  The USD still looks like it is turning bullish, but time will tell.

NATGAS-  Oil remained bullish, but the NATGAS chart dropped quickly after breaking out. This looks ugly, let’s see if it follows though downside with the selling.  NATGAS Looks like it is on day 24  ( or day 9 of a 2nd daily cycle).  If this is all one daily cycle out of the Aug 6th lows, then we should be seeking out the next daily cycle low.

GOLD #1 – We now have our back test of the break out in the 1300 area, and a tag of the 50sma is pretty much satisfied. Yes, we can drop further, but ‘time’ is sufficient for a DCL and we have a few signs of a low being near.  Lets take a look…

GOLD #2 –  This 30 minute chart looks like the selling may have exhausted after the Fed Slam down, and now an inverse H&S pattern may be ‘setting up’ a swing low.  It would be jumping the gun a bit to say that the lows are in place, but this head ( Around 1288) should not be broken if this pattern holds.

GOLD #3 –  This is GOLD live this morning (  That possible inverse H&S does NOT even show up in this time frame).   If it plays out & Gold moves higher today or Sunday -Monday,  this is how the swing low would form, and that would be a safer buy.  I would also expect several Miners to lead the way higher.

So with the ABOVE charts, Gold back above $1300 could be the start of something Bullish.

GLD – This candle is a certain type of Doji that can come at the end of a sell off, and we are at the 50sma. This could reverse higher, or do a quick shake out and then reverse higher.  WAITING for this to ‘set up’ and put in a swing low reversal may be best for most traders here  ( to sleep comfortably over the weekend).

GDX – GDX has a candle that could signal a reversal is close by too. Lets see how this plays out.

Look again at the candles in the charts ABOVE for GLD & GDX, and you can see possible Gravestone Dojis. These are ‘reversals candles’ that end a sell off.  They do not always work, but we might be seeing that kind of sell off bottom.

Gravestone Doji  –  It does not represent  THE LOWEST CANDLE in this picture, it represents the indecision in the sell off and the lows can form at or near a Gravestone Doji.

GDXJ–  GDXJ also looks like a gravestone doji, so we may be seeing the selling drying up.  NOBODY THAT I KNOW BUYS THE GRAVESTONE DOJI, because they would have seen the selling resume into the close and most traders actually get nervous and sell at these lows- feeling that the next day will sell off further. This could be a shake out if this gravestone doji is forming at the dcl.

That is your Friday report. The reports have been released a tad later than normal , due to my current location losing internet and I have been quite busy with my wifes family down here. Thank you for your patience in that way, and the good news is that we really haven’t missed a thing in the Precious Metals Sector.   We are due for a dcl, and we may see it form at any time.   After we get a confirmed swing low, that is considered the safest place to buy.  Also Miners may lead the move out of the lows, and so some of them may be shaping up to go higher too.  Enjoy your Friday trading!

~ALEX

In Energy, many remember that I was constantly pointing out stocks that I thought were strong in this sector.  RES, ERF, AREX were 3 of them.   RES did a shake out, but lets see how it has progressed.

RES –  I did not buy this shake out, and it has now simply gone straight up out of the lows.  $17 – $23.42 in a month.Very nice.  Maybe the lows in these Oil / Energy stocks are finally in place.  Many look good.

WTI –  Another Energy stock that is taking off, as pointed out on September 14 on this chart….

WTI     ….also just hasn’t slowed down

OAS – SO we have stocks like OAS, SN, SM, BTE, WPX, and so on seem to slowly be climbing out of their lows .

SN –  A buy set up is forming right here.  So when I see a sector begin to ‘set up’ like Energy stocks have been, I see SN, and I like the set up risk / reward wise.  This could Pop and go from recent lows at $4 to $8 in no time.

BTE – A break out and a back test already took place along the 50sma.  This will likely run to the 200sma ( possibly break through, like HOS did).

AXAS –  This also looks ready to break out.  Another Energy Stock just ‘setting up’.

RTK –  This is a bit more risky, due to the lower price, but this base looks great and the recent volume POPS seem to indicate buying interest.  This tiny pop was….   34% on Thursday.

CLD –  Here we see 1 solid up day off of the 10sma, and then a drop.  Another solid UP day off of the 10sma,  and then a drop,  repeat , repeat.  IT is now above the 50sma and that is bullish.  It is a buy here with a stop under the 50sma  ( loosely).

WRN – We are getting the 50 cross above the 200sma as pointed out recently.  I was asked where my stop is for WRN.  I bought most of my WRN at the crawl around the 50sma near $1.10, so my stop personally is under that area.  I have just been riding some stocks for weeks,  and WRN is one of them.  We have a trend line  ( blue dotted line) and a set of moving averages.  That means that Your stop could be here if you own it, or a reversal at either area here could be a low risk BUY point.

SIDE NOTE: Some readers have mentioned to me that they no longer receive the ’email alert’ telling them when a report is released.  I mentioned it to support, but they cannot tell who is or isn’t receiving them.  If you are not getting email alerts and want him to look into it for you,  please feel free to report it TO SUPPORT, under the ‘Support’  tab.  Contact them on the drop down menu  ( Not Alex).  Thanks.