4-17-2018 Things Are Popping

 

NASDAQ –  The general Markets were on day 10 of a new daily cycle Monday. The are pushing against the 50sma as resistance…

 

 

I am unable to do a thorough proof read this morning, I need to run out-  please excuse any typos.  Thanks

 

NASDAQ – Monday morning in the comments section I posted a slight concern using this chart.  If we don’t break out soon, we are at the apex of a wedge & could break down.  So I pointed out…

 

NASDAQ – That it may just drop to form a lower channel line.  The good news is…

TRAN – Peter mentioned in the comments section,  1 hr after the markets opened, that The Transports were up nicely  ( Thx Peter).   I looked and saw that TRAN was breaking out. That is rather reassuring, because it actually broke out above the 50sma and down trend.

For those under-invested- if we break above the 50sma, you can buy  TQQQ, UPRO, ETC – if you want a 3x etf in the General Markets.   In the back of my mind, as stated in the weekend report,  I do wonder if we are nearing a double top or consolidation, so I would just take it a day at a time once invested.

 

CASA, TWLO, SAIL, JBL, ETSY, CY, CREE, etc, etc, – are still looking bullish,  so overall the concerns are minimal at this point in time.  Use stops.

 

CASA -Several of the stocks discussed here in the past are still holding up well.

 

 

WTIC  –  Oil pulled back, and Energy did not ( Next Chart)…

 

XLE –  As mentioned, breaking out of this tight  base is Bullish.  This is a small version of what we see in GDX, so if GDX breaks out , remember that bullish ascent.

 

USD  – The USD is weak so far, and it peaked on day 7 & broke down. Monday it could not get above the 10 or 50sma.  THAT can become  a back test before a drop. Read the chart.

 

RISING WEDGE – This is a Bullish ascending triangle. Stare at it for 5 seconds, and then look at the next chart.

 

 

GOLD   – ASCENDING TRIANGLE with The USD looking ready to drop? GOLD might be coiling under accumulation tomake an attempt at a break out.

I have said that one would want to at least own a couple of miners with a set up like GOLD & SILVER have.  If the set up fails, stop out & re-enter later.  If it breaks out higher,  you are in the game.  Look for stocks that are not extended, if entering at this point.    BTG tried to drop & tag the 200sma.  AUY sits on the 50sma, etc.  Silver Miners have been a buy for a while now.

 

 

GDX   – This is after Mondays trading, no real change from the weekend report. Possible bullish path drawn.

Not a whole lot changes from the weekend report to Monday, so that is your market wrap up.  I did see MANY trade ideas forming, and will discuss several below.  Enjoy your Tuesday trading!

 

~ALEX

 

2 weeks ago and last week I mentioned the Uranium sector & stocks as being bullishly set up.Thep started to POP again yesterday.

 

URA URANIUM ETF  –  Back Test the 50sma, breaking through the 200sma, this is a buy.  See  also UUUU, DNN, UEC, URG, NXE, etc. I will discuss a few below.

 

DNN – posted here on April 9 as inside of a base trying to break out as it POPPED toward the 50 & 200sma. .

DNN   – A bull flagged formed and it DID pop Monday.  I bought this Yesterday and it remains a low risk buy with support under the 50sma..

April 9th – I mentioned that I bought UEC and posted this chart in the comments that day.

UEC  –  Later that night it went into the report and this had a bullish set up, along with other Uranium companies. This remained a buy.

UEC Monday April 16th – It slowly climbed higher day after day & then Popped Monday.  These are attempting to get back to their recent highs ( Forming cups) and remained bullish.

 

CCJ –  From my April 10 report, my idea of how an upward path could unfold…

 

CCJ – On target to complete a cup. This is a longer term buy in my opinion.  In April it slowly climbed from $9 to $11.  It popped and came back yesterday,  but the chart ( and more importantly, the sector) remains bullish. This is a long base to break & run from later.

 

UUUU  – Volume came in on Monday and this looks like it already formed a cup & added the handle. 1 measured target is about $2.20 from here.  A good %- Gain.  This has NOT been an easy ride, look at that choppy handle, but it remained bullish.

 

Medical Marijuana – THIS SECTOR IS also COMING TO LIFE,  but I have to again warn that these CAN BE VERY DIFFICULT TO TRADE OR RIDE.   This MAY NOT be for everyone.

 

 

I will start with a couple of charts to detail sort of a lesson in this sector:

 

BLOZF– Let me show you a few reasons why this can be difficult as sort of a lesson. We’ll start with BLOZF pros & Cons, which started running ONLY 5 days ago…

1. They can look as though they are ‘slowly’ moving up, but Monday alone was 13%

2. This it is now up 75% in 5 days!  This could be a 100% Gainer in let’s say 2 more days. Sounds awesome, but it can fall quickly too.

3.  This has a lot further to go, if it breaks out and runs like they usually do.  Notice how it ran  at the end of 2017, however…

4. However, jump in here and it can drop to the 10sma from $1.75 to $1.45  in a day ! (Ouch).

 

CANN – So we turn to CANN, and again we see that when these come into demand, they can move 20%  day after day after day.  That is awesome if you catch it correctly, this was a buy at the 200sma, but again-

The pullbacks CAN  break your confidence.  A simple drop to the 50sma now is a drop from $6 to $3.50 and it can happen in 2 or 3 days. This also could run straight to $11.  THESE ARE NOT EASY TRADES, SO…

 

THE BEST WAY TO BUY THESE IS AT SUPPORT AREAS, LIKE BASES & MOVING AVERAGES.

 

GBLX – I bought GBLX last Friday after Trumps announcement that he will not interfere with legal battles for medical marijuana in the U.S. .  I purposely got in as it broke the 50sma. NOW I can just let it ride or sell for a good gain.  You don’t just want to jump into XXXX ”  … because it is running strongly and everyone is buying it”, because if you buy it after it is higher, you may ride it down or stop out immediately.  THIS was at support last week.

 

MEDFF  – About a week ago, I actually called this a possible ‘double bottom’, and then it broke out above resistance.  This double bottom base had good results, so…

 

I posted this at 1 P.M. Eastern Monday in our comments section.

CBWTF  –  So I bought this Monday and I may be early, but it looks like a double bottom struggling at resistance ( The 50sma).  The last time I bought this in December, I almost tripled my money as it quadrupled from about 65 cents to $2.40 ( and $2.70 later).  I AM NOT saying that that will happen now, but it could easily double+ over time, if this sector runs.

 

MSRT #1–  You can see that this ran from10 cents to about $1.10 in Nov-Dec.  It also has a double bottom base and is breaking out.  This  looks like 2 small POPS, but lets zoom in …

MSRT #2 – 2 small pops? This is why it is tricky.  This can do what  CANN did( I’ll put the CANN chart below this one). Can broke the 10sma , the 50sma, and then the 200sma & TOOK OFF.  If you buy this here though, it could pullback, so it needs to be watched closely.  This is not a trade for someone away from there computer, unless they just buy & hold & Ignore it for a week or so.  Compare this chart to CANN.

 

CNBX #1  – Is this another possible  Double bottom base too, ready to break out?  It already broke out of the down trend and is now temporarily stalling at the 200 & 50sma.  I bought this Friday on the high volume POP. I added yesterday.

 

CNBX #2– Maybe it pops over the 200 &  50sma and back tests it like it did in November (See the Purple boxes). You could wait to buy that, but it basically puts it where it is now.

 

CNBX #3 – Maybe it stair steps higher,  who knows? But if it gets to former highs, it is a great %-Gainer, and I viewed it as a ( relatively) low risk entry .

 

KSHB #1  – When this crossed the 50sma Friday after Trumps statement,  I bought it.  The whole sector seemed to start moving, and I had been watching it for a couple of weeks before that, so I was ready.   It still looks like it has a long way to run, volume is good, and it should get back to firmer highs.  That said…

KSHB #2  –  It is difficult to recommend these after the POP.   I like to buy it at the 50sma POP.  Now this MIGHT drop back and lose $1 to test the 50sma, or just keep running, it is hard to know.  It IS easy to recommend putting some of these on a watch list and if it drops to back test?   Buy it at support & use a stop.

So basically I am trying to show you HOW I hunt these down.  Friday I quickly checked the ‘news’ on the stocks that I bought, and went to their earnings reports to see if they have been progressing, making money, etc.     That said:  I will not buy even the best company if it is up 40% above the 50sma.  Yes, they can keep running, but the risk / reward is not in your favor.  The risk of a substantial drop is high.

 

LBUY–  I believe this company offers advertising for the MJ industry.  So  when I see this chart, it doesn’t look like it ran very much yet, but it actually has.  This was $1.20 to $1.80 already. It MIGHT STALL at this point & Bull flag, but it did close above the moving averages. Last July & last December it ran over 200% .  This may be worth a try.

https://www.marketwatch.com/story/legal-cannabis-products-set-to-increase-in-demand-2018-04-10?siteid=bigcharts&dist=bigcharts

Look under the ‘News” of each company, by looking it up on Yahoo Finance. Learn about the company /  due some due diligence, and this sector may offer you some great opportunity.   The above type of  ‘news links’ can help you to do a little research too.    In the past I have traded  SPRWF, OGRMF, TWMJF, ACCBF, APHQF, MEDFF, CNAB, CNBX, CBWTF, AMMJ, VBIO, NDEV, and so many more. You can look at their charts and ask me about them, or look to see for yourself if they are near support and seem to be setting up correctly. Last October through December, I literally made MASSIVE gains in this & the Blockchain sector.