May 10th – Cross That Line

SPX – The General Markets are shaping up and as mentioned in yesterdays report- I expect the SPX to cross this line.  That is ( at least short term) A bullish break out from a down trend. We also have been watching this triangle formation.

And this is why I mentioned that I would expect a break higher…

NASDAQ – The NASDAQ already broke above its down trend line on Monday, Wednesday we made a higher high above the April peak.

TQQQ – So buying at support worked, a close above the 50 held, and it could be bought here with a fairly tight stop under that 50sma.  If you buy it right here, and it runs to March highs, it is $160 to $190 from here. That is STILL roughly 20% gains.

RUT ( or IWM) –  The Small Cap index is just about at the former highs. We have discussed many bullish stock set ups that are doing well.  SQ, COUP, CAMT, SAIL, RESTAURANT STOCKS, etc etc

WTIC  – Oil continued higher on its way to the 2 conservative targets of $72 & $74

ERX  ( 3x etf for XLE) – I mentioned buying this with a stop for a possible run to the Jan highs, shown with the blue line to $44.   $36 to $44 is about 20% gains.

ERX – It is on its way for what looks to be the 2nd leg higher. It gapped, so if the gap fills you could add with the same stop under the lower red line. ( $34)

USD & PRECIOUS METALS

Just 1 thing to mention about USD VS GOLD.   Look at the USD below, it has moved higher over the last 7 days. Gold has not dropped.

USD – The USD has been strong out of the base, but it is getting extended and ‘time’ should be coming due for a dip .  THAT DIP should help Precious Metals Pop, and we need that to happen soon.

USD WEEKLY  – Read the chart.  I’ll be watching this, but maybe not so much Thursday, definitely  on Friday. Again, this could help Gold.  A run to the Blue line wouldn’t.

GOLD  – So the USD has run higher for the last 7 days, Gold has held on support so far.

For GOLD – We do need a pop soon though.  When putting in a daily cycle low, GOLD can confirm by simply going sideways & eventually closing above the 10sma ( $1314) and eventually moving beyond the down trend line.  We need a POP soon.

IN THE BACK OF MY MIND I STILL HAVE THIS THOUGHT– what if GOLD crashed for 2 or 3 days. MINERS might not break lows, but GOLD could & this could be an ICL. This is probably least likely, the volume looks like accumulation- but time will tell.

GDX – GDX is pushing on the 200sma, and is above the 50sma, so it is fine here. The RSI is slightly above the 50% line, but we really need this thing to CROSS THE LINE.

GDXJ  – GDXJ was a buy at the 50sma, but it has gone sideways ever since.  It is still bullish above the 50 & 200sma, but again, we need to put some room between our buy.

SIDE NOTE:  Some Miners are doing very well, others are lingering sideways,  rather stagnant. I still own some leverage and I owned AXU, HL, CDE.   I mentioned in the comments yesterday that I was cutting my CDE midday.  The volume was heavy and it dropped below the 50 & 200sma  ( My mental stop for CDE).  I can always get back in, but for now-  that was a mental stop sell.

~ALEX

Yesterday this article came out, and was pretty interesting for the Solar Sector. Naturally there was a knee jerk reaction, many Solar stocks broke upward, but only California providers would benefit.  Let’s look at some Solar Stocks that have a bullish set up. You can also look up harts of  RGSE  (  Big pop), WNDW, SUNW, YGE, SOL, JKS, JASO, CSIQ, SPWR, etc.

http://www.startribune.com/calif-requires-solar-panels-on-new-homes/482238281/

ENPH  – I own it and have had it in the reports, but it also is a provider for the Solar Sector.  It is still holding above the 50sma, so I added again, and a stop for that addition will be under the 50sma.

SPWR – Sunpower  burst higher right off of the 50sma Wednesday.  You can see that this is a tough ‘day to day’ ride at times, so it may be tough to buy & hold.  Notice, however, that SPWR  was already trending higher since the Feb lows.  It made higher lows and with recent selling, it  is oversold.  Maybe it will move higher with a little less choppiness from here.  I did not buy it, but I thought about this one and SOL.

SOL– I almost bought this one, it is a smoother ride recently and held the trend line & moving averages.  I still may buy this Thursday.   $2.80 to $3.80  is very possible, and would be 35% gains. Also…

SOL WKLY – I love this base. This is really why I wanted to buy SOL.  The weekly chart is Already above the 50% RSI line, and the MACD is rising steadily, so this base looks constructive and maybe the catalyst is the new law?    This could possibly be a ‘buy & hold’ as long as it continues higher.

FSLR  – Solar saved by the bell?

LUNA– Just a reminder, LUNA was going to release earnings May 9th after the bell. It didn’t really move after hrs, so I am watching it this a.m.  This set up is similar to COUP & CAMT consolidation.

COUP –  DO you see the similarity of this COUP consolidation toward the 50sma, and LUNA above?  LUNA will be bought by me if it doesn’t react negatively to the earnings call yesterday.   I traded COUP, SAIL, & CAMT as a trader, but should have held them longer.

In yesterdays report – a bull flag Energy Stock QEP

QEP – Breaking out as of Wednesday

Another ENERGY stock that is tricky-  GST

GST releases earnings on May 10th after hrs, but you’d think that someone knows something for a May 9th Pop like this, huh? I wanted to buy it Wednesday morning, but that earnings release kept me out.  I will be watching it Friday.

And we still have out bullish set ups and follow through in stocks like TWLO, TWTR, SQ, CAMT, COUP, CAKE, SHAK, CHUY, and so on.  I hope you have kept a watch list and look at the stocks mentioned here daily.  I try to do that myself.    Ride them, add on the dips, etc .