Friday Aug 24th

Welcome to the last trading day of the week…

 

USD-   This is a copy/ paste from yesterdays report, expecting a USD DCL.

 

 

 

UUP  ( USD) –  It looks like the DCL may have formed. I mentioned yesterday

 

Now let’s discuss Gold…

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GOLD  – Gold dropped and I am watching to see if the lows hold.  I personally think that they should, because the timing ( daily count)  is very late for Gold.  Maybe we see this as the USD bounces out of a dcl.

 

EDIT FRIDAY MORNING:  LOOK AT LIVE GOLD as of 6:30 A.M.   🙂

 

 

GDXJ – GDXJ dropped and there is a chance that the lows were going to be taken out, so we look at a day 34 low as a possibility, day 39 if it breaks down from here. It could be a very bried shake out and not a second FLUSH. Why do I say that?…

 

GDXJ –  Look at the ‘FLUSH” in July 2015.  It then made a SLIGHT lower low or undercut,  just to shake out the early buyers.  It also went sideways along the bottom of the 10sma.   Again,  the safer less frustrating buy was a close over the 10sma.

 

GOLD –  Gold did the same thing, shaking early buyers out.  Buyers were no doubt nervous of a second FLUSH leg down that never came.

 

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We’ll have to see what Friday brings, but as I have mentioned before,  ALL BOTTOMS LOOK DIFFERENT.  They can be V-Bottom rockets, they can bounce around and shake the nerves of the more experienced  traders too, and that is why I recommend waiting for a close above the 10sma.  It is not a guarantee, but it is more likely to be a sign of strength that the signals lows are likely in place after such a flush down.   You see a lot of shake outs and jittery trading near the lows, and those that jump in early at every good looking bounce or reversal can get knocked out .

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You can also skim yesterdays report for some of the trade ideas there that remain valid, like  VJET, VSTM, PXLW, PDS, COUP, TRXC, OGRMF to name a few.

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Enjoy your Friday trading, there are a couple of notes below, and enjoy your weekend too!

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~ALEX

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CNBX ( Copy / Paste )FROM YESTERDAYS REPORT- I called CNAB as an MJ stock that would POP, and it was up 40%  Then I said,  “Do you want to know which one is next?  It is CNBX”.

 

 

CNBX  –  And it did 🙂  This sector is acting very correctly, and as I mentioned yesterday,  you can just take a position and when it pops ( This was up 20%), you can just take 1/2 and let the rest ride, or take it all and walk away to find another.

 

 

 

 

 

 

CBWTF NOTES –  These were my notes from the comments section.  I had mentioned that I owned this one days earlier, along with CRON, CANN, CGC,  and a few others.  It too looked ready to POP and you can read what I wrote in the comments section here….

CBWTF –  You can see the POP 4 days ago and then a stall or flag at the 10sma.  That is where I added & wrote the above comments and it popped about 20% and sold off a little into the close.  I still own it.    The ‘Set up’  is a tight base, look at how it crawled along under the 10 sma. It MIGHT just flag along the 0sma and then POP again later.  If so, that flag could be the next buy  ( or place to add). CANN is doing that now.

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Are there any that have not popped, that I still think will eventually?  Yes, quite a few.  One is APHQF, as mentioned on August 20.  I still own it in this base.

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APHQF –  I bought the first POP and it too flagged, then it popped toward the 50sma, but didn’t surge through it like CNBX, GBLX, CNAB, CRON, CGC, etc.  Let’s take a look at this one now.

 

APHQF – It has only been 4 days since Aug 20, and this closed above the 50sma, dropped back under to the 8 EMA, and yesterday put in a doji.  This could be a small flag before a move higher.  I own it from last week and added this week.

 

 

OGRMF-  Also from AUG 20   OGRMF  was moving back toward the former highs.  This was a  BUY either as it broke the down trend line ( Not shown) and the 50sma,  or  after bouncing off of the 200sma.  It is still a buy in my opinion…

 

OGRMF – It has slowly,  day by day, climbing higher.  This is acting bullish long term, but HAS NOT been an easy ride.  We rode this one last year Oct through Jan, and I was stopped out eventually.  If this breaks the highs, it could just continue higher.

 

So I do find this sector rewarding every time it gets into a bull run.  The entire sector begins to respond, and you can find a lagger that suddenly pops 20% or more over time, if the sector runs like a bull  ( last OCT to JAN),  you see many add 100- 300%

 

KSHB –  I have been waiting for this one to join the fun, and it popped a bit yesterday, but I like to see more volume, so I passed on this one for now.

 

CANN–  As mentioned before,  I do like to see volume on the Pops, and CANN Popped with increased volume off of the lows, then it tagged the 8 ema and Popped for 2 days again. It has now flagged again along the 50sma.  Give it another day or so and it may burst higher again.

 

NOTE:  Just remember the risks.  I am NOT saying to go all in and become rich, but I am saying that this sector has been acting correctly and predictably.  In the past,  like last October through December, we were able to make some great gains.  This current sector set up looks like the same opportunity.   THERE ARE RISKS,  but some of these companies are making money now & they are growing.  Some even trade on the exchanges of NASDAQ or NYSE.     * CGC, CRON, GWPH.

 

GPWH – A NASDAQ PHARMA in the MJ SECTOR is now a buy too.  Look at a 5 year chart of this one.  It was under $10 just like CRON 5 years ago, now it is a buy & trades near $140.   CGC & CRON may have bright futures!  ( Though the rise can be choppy at times).