Tuesday – October 2nd

SPX– As we’ve seen during the prior daily cycles, price can just ride up along the upper trend line for days. This daily cycle is getting a bit late and will dip into a dcl sooner or later, but as I have mentioned before, a trailing stop may work best, to continue to capture upside.

NASDAQ – The NASDAQ break outs often see a back test as shown, but because of the upward slant, this break out could rise up and and end up back testing higher ( Similar to May).

USD – Day 16 has this likely right translated and since we have an ICL, we do expect the USD to move higher for weeks ( With dips and a dcl along the way).  This has hindered Gold, so when the USD dips into a dcl, Gold will likely find its dcl and move higher.  See the weekend report, I explained this there.

WTIC – I am thinking that Oils sell off may not have been not real, because Oil & Energy stocks totally ignored it  ( You will see this at the end of the report).  We may have just set the trend line. Does Mondays break of the 10sma concern me & make me that this a drop into the dcl? No,  look at July 10 and July 23 where OIL closed below the 10sma, yet it continued higher for weeks.

XLE & OIH did not close down the same way that Oil did, and many Energy stocks reversed & Closed higher.

AT THE END OF THIS REPORT, I WILL POINT OUT SOME BULLISH LOOKING ENERGY STOCKS

LABU –  I had pointed out this inverse H&S Sept 25th, and we are seeing the upside follow through. Many Biotech stocks are Exploding out of their bases.   See ECYT.  Wow.

CRMD #1 – I was a bit early when I bought this base in July, the consolidation continued…

CRMD #2  from yesterdays report – a nice base with signs of life, this looked ready to break out with those strong VOLUME PUMPS.

CRMD #3 –  Boom, up 32% Monday.

MBOT –  MBOT is another base that I pointed out a month ago or so.  So I still think that MBOT is a good set up, it too has had some nice volume surges, but the consolidations continues  (for now).  This could go at any time – Buy & hold or keep it on a watch list and check it often.

GOLD & MINERS

GOLD –  So Gold sold off further as the USD continued higher out of its ICL.  Since the USD is showing strength, I’m watching how Gold & Miners are acting.  Gold is acting as I thought it would if the USD rallied, but some Miners are really holding their own. If the USD rolls over into a dcl, the 61.8% area may be where Gold finds its DCL, but Miners are showing signs of possible lows.

GDX – This looks like a bullish wedge, and it is day 38. A quick shake out could happen at the 200sma, but Miners closed a bit higher with GOLD down $8 or $9, that is a bit bullish.  Some individual Miners  have a short term bullish look to them…

SO with GOLD selling off and Miners turning green, we saw the GDX:GLD cross higher.  This means that Miners are leading Gold, and that is often what happens before a dcl.

LET’s LOOK AT MINERS ACTING BULLISHLY, WHILE GOLD IS SELLING OF $10 / DAY. THIS COULD BE SIGNALING THAT THE DCL IS NEAR.

GG –  GG is off of the lows with Gold selling off , for example.

CDE – CDE is ignoring Silvers sell off by consolidating above the 200sma.  CDE looks bullish with the USD rising and Precious Metals falling. I think that this is a low risk buy

NSRPF–  This Miner is ridiculously bullish looking. I have a price target of $7, and it is hardly dipping down to let anyone on board  (As Gold sells off).  Look at this – 50 cents to $6 in less than 3 months.

AG –  Silver is selling off and AG is forming a triangle formation.

DRD – This consolidation also looks good, unable to fill the gap so far.  If these CANNOT sell off during a sell off and just go sideways, they usually move nicely higher during a bounce  ( or out of a DCL).

SAND – Sand in trending higher and found support at the 50sma Monday.

SSRM- As pointed out last week, SSRM is still closer to recent highs, not making new lows.

AND SOME ENERGY STOCKS THAT LOOKED FINE DURING OILS SELL OFF.

ANW –  This is one that was in the weekend report, and it didnt sell off when Oil did.

DNR –  DNR is climbing steadily higher,  still within a base. BUy it here or you could buy it if it pulls back again

AMRS –  AMRS already ran up 100% and is consolidating the gains.  This is a bullish set up as it squeezes in this wedge.

LGCY –  I pointed LGCY out in the comments section during the day yesterday that LGCY didnt sell off during OIls dip and…

LGCY–  Then it started to break out in the final hour of trading.

SN –  I use loose stops, but I got stopped out of SN yesterday and it reversed back above the 50sma, so this one is still bullish.

SWN –  This one and OAS did the same thing, the selling is being bought back.

VOC – Break out during Oils sell off.

So you can see that Oils threat to break down here may not be real yet.  These Energy stocks weren’t believing it,  and they remained bullish.

I pointed out that SSYS was breaking out on September 12th.  The break was of the 50sma and the down trend line

Sept 27,  SSYS is a buy after doing a ‘back test’ of the trend line. I mentioned that the back test formed an inverse H&S.

SSYS –  OCT 2 –  you can see the back test was successful and SSYS should now be on its way higher.  This has not been an easy ride at all, but it does look like a bullish inverse H&S now.

So as you can see, not much has changed from the weekend report. Enjoy your Tuesday trading!

~ALEX