Tuesday September 25th
We have only had 1 trading day since the weekend report and with the FOMC MTG on Wednesday, not much has changed, but one sector did seem to catch fire on Monday . We will talk about that…
To start, we still have mixed markets, with the different sectors of the General Markets moving in different directions. The DJIA & SPX began Pulling back on Monday, however…
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DJIA – Dropping down after a run higher
NASDAQ – The NASDAQ did a reversal on the 50sma again, and looks like it wants to move higher( Though MACD is still a bit weak). So far, it has been sideways and choppy as I have mentioned, but it is also a buy with a tight stop if someone wanted to try to go long the Tech Sector ( TQQQ). If this breaks below the 50sma, it may be pulling back with the SPX & DJIA.
WTIC – Oil broke out and the Energy sector actually really looks set up to run higher now. I will discuss many ‘bullish energy stocks’ at the end of this report.
XLE WEEKLY – XLE gapped open and keeps finding support on the 50 week MA over the past year.
GOLD & THE MINERS (GDX here) – Miners are holding up, we are nearing a Fed Mtg Wednesday. We usually DO get a ‘reaction’ in precious metals after a Fed decision. A rate hike is expected this time around.
Tomorrow is Fed Wednesday, we’ll see if there is a reaction on the decision. I would expect it to be baked in already. Meanwhile on Monday I was skimming through several of my Energy stocks and saw Bullish action & set ups, so I will discuss that and a few Biotech / Pharma stocks below. Commodity / Metal stocks like CLF remained strong, and MJ stocks are acting the same, with some pulling back & others still making great gains.
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Enjoy your Tuesday trading!
~ALEX
CRC– This was a BUY set up in my report September 18, and I mentioned how quickly this ran from March to July, basically $12 to $47, so I put a tech analysis price target of $60+ from here…
CRC– It popped over 17 % Monday. One of our readers wrote to me and mentioned that they had a lot of debt, so keep that in mind, but so far this is playing out the way the chart was set up to play.
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BIOTECHS ARE PLAYING OUT TOO
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GALT – I have discussed GALT, ZIOP, SESN, SENS, VSTM, IDRA, etc – so let’s look at some of these set ups. On Sept 18, I showed GALT as bullish breaking above that 50sma
GALT – It has been slow & steady, and remains bullish above the 50sma. This can run to former highs, and that is $6.50-$9.50 even from here.
IDRA – This is a buy again, even though it popped 13% Monday. IF it pulls back, that would be great, but it may just take off and run, it is hard to know. This was $8 at the 50sma, and could easily double from there. It is oversold.
OMER – Omer is oversold and breaking higher too. It is a low risk buy as it breaks that down trend line .
VSTM– This was an old favorite and it is finding support at the 34 or 50sma. It may have just done a small shake out.
ZIOP – You could still buy this, even though I recommended it a few times closer to the 50sma. It looks like a slow steady climb here, and should continue higher.
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ENERGY STOCKS CAME ALIVE, MANY HAVE CONSOLIDATED
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WTI – This was a long choppy consolidation that is now looking set up to break out and run. In 1 year, it ran from $2 to $9, and may be ready to keep going. That $1-$9 move was NOT easy to ride, this has been very choppy, I have traded this one personally and had it in reports. Many of these are longer term buy & hold if you can stand the choppiness.
OAS – We have also traded OAS many times. It has gone from $7 to $13 , but look at the potential, once it gets out of this base. This COULD run straight to $40 or even $55 (over time ) with this set up once it leaves the base. It could get choppy though.
GTE – Another nice long consolidation / Base that looks ready to break out. I would wait for the break out on some of these, since they might keep running sideways until they break free. This is good for a watch list, but it also DOES look like it is breaking out now or soon. That was a 7% move higher Monday.
HOS – If you add the length of the move in June to July to the August low, this has a measured projection of ROUGHLY $6
BTE – This is just starting to break the down trend. We do see resistance with the moving averages, butin April when BTE got above those moving averages , it ran almost 100%. Volume was good Monday
CPE – After putting in a 4 month base and crawling under the 200sma for 8 days, CPE broke above the 200sma & could run from $12 to $14.50 for starters. The BIG picture is promising on this one too.
LGCY BIG PICTURE- I’ll start with the big picture, we have traded LGCY off & on n in this base. That last run saw LGCY run from $1 to $10!! This pull back has been healthy and looks normal as it dropped and rested back on to the 50sma weekly. Could this go from $5 to $20 (Former highs)? Eventually, yes.
LGCY – Bouncing off of the daily 200sma and popping over the 50sma last Friday, LGCYcould be ready to run again, if Energy is perking up.
MJ PULL BACK
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I’ve also been asked about MJ stocks pulling back. I do NOT think that the run is over yet for many, but they do pull back & consolidate. I look at different MJ stocks in their own way as they pull back, so this is CANN for example.
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CANN – For some I try to find an uptrend line, I use moving averages that best fit prior dips, etc. I see CANN within this channel, so it might drop a bit more or work sideways to support, and that could be a good lower risk buy area. You may see $3.50 in CANN.
ISOLF – I was asked about ISOLF – is it ok? It is fine. This can drop to the 50sma and be fine, it could be forming a rounding base. It also could just take off and run to the 200sma, which is a 100+% move. Notice the POP on Sept 12 & 13. THAT is a 100% move from $2 to $4. These move like lightning! I expect them to drop & pop, not just move higher, so…
