Tuesday- Things Are Looking Good
The weekend report covered the Big Picture, so today will cover some of Mondays action and what we can expect from there…
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General Markets / SPX – We could bounce out of a daily cycle low, or this builds a bear flag and drops again. Timing is correct for a dcl. Notice also the price action after the February drop. A strong bounce to the 50sma and the price returned to the 200sma.
USD – The USD is still under the 50sma and should drop to a daily cycle low. This would push Gold higher. This may drop to the 200sma.
WTIC – Day 41 or day 2, depending on whether or not that was a DCL. We could get one more drop and break the 50sma as a shake out. This is an unconfirmed swing low however.
GOLD – I posted this at the close Friday and put it in the weekend report. A Bull Flag. Would we get a push higher Sunday Night to Monday? I expected one.
GOLD – And we did break out & run higher, and seemed to back test the Friday highs on Monday. Let’s see what Tuesday gives us.
GOLD RUNNING CORRECTION – This is the chart above, I have added a running correction.
GOLD – This is Gold and I am expecting that Gold would run to the 200sma over time. How it gets there remains to be seen. Price should stay between the 50 & 200sma, however , we may back test that 50sma. DO NOT FORGET THAT I also showed everyone last week that in 2008 …
GOLD 2008 – We did exactly that in 2008, but it broke back below the 50sma, so expect it just in case. Notice again that Gold broke above the 50sma here, and then broke back below it. THAT SHAKES PEOPLE OUT, AND IT COULD HAPPEN AGAIN AS A DCL.
SILVER – Silver remains slightly above its 50sma.
GDX – Possible topping candle. These usually are the start of at least a short drop or pause, but not ALWAYS, as you will see next …
GDX – We had some of those candles in 2016, and this shows that the drop can be very short lived., or even intraday. We just have to wait and see, but again, by request, I will give you ‘possible ways that this can play out’…
GDX – So a drop could be a tag of the 50sma as a dcl. I have already pointed this out. If day 21 IS NOT a dcl, then one is coming due soon.
GDX – If day 21 was a dcl, we’d be on day 3 and yes, this still could get a quick drop & run , as shown.
GDX – Or that topping type candle may dip a bit or even move sideways & then take off higher without a 50ma tag. That tag of the 50sma CAN COME LATER. See the chart.
GDX – Again , we’ll look at the 2016 lows . GDX did not tag or back test the 50sma ( blue line) until later- it moved to the 50sma later when it went sideways after a run higher.
Miners look good, many continued higher and stayed there, even though GDX & GDXJ had that topping candle. This was GORO, and this is what I am basically expecting GDX / GDXJ to do over time. It looks like it wants to run back to former highs out of this base. I still own it. though it is getting extended. I’m hoping for a sideways handle on the cup to relieve overbought conditions later.
I like the set up and the weekend report covered the many reasons why. COT, SENTIMENT, etc.
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Enjoy your Tuesday trading!
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~ALEX
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TRADES – Markets are selling off and choppy, so it would be difficult to find many safe trades at this point. I have pointed out some Metals and Miners trades, and MJ trades in recent reports. I will mention a few trades below that are not being affected by the market sell off.
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CHMA – I noticed that this stock pretty much tripled in 2 months and then set up another bullish flag consolidation. I am going to mention that this one is probably best for the higher risk traders or those using a reliable stop and here is why…
CHMA – This is one of those very long bases formed after a steep sell off. It is due to reverse splits that the stock can move the way it is, but the set up is bullish. In our comments section, some readers like SOG and HUN are trading these, so I decided to put it in the report.
GORO AS AN EXAMPLE – I already showed GORO as a buy when I bought it, and it has made progress, but let me show you again the chart that I posted when I bought it…
GORO – Notice the 200sma and 50sma alignment. This shows the 200sma rising higher and the recent consolidation brought the 50sma to it. This is bullish and I mentioned that I bought it partly for that reason. Well…
ENPH – I see that here too. This is an easy BUY with a stop under this support, and yesterday it even popped 7% higher off of the 50sma.
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THE MEDICAL MARIJUANA SECTOR IS SMOKING AGAIN
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**MJ ETF – THIS TRADES ON THE AMEX – it is a listed ETF. I posted this 2 weeks ago and mentioned that MJ stocks were consolidating. This ETF may work its way to support building a bull flag. Notice that I said that We’d look for signs of life at the 34 or 50sma…
**MJ ETF – 34 sma & POP. This was and is a buy and the whole sector seems to be coming to life again…
**MJ ETF – And was simply a 38.2% dip. It is still oversold now and the MJ stocks are breaking out & look very ready to run. In 1 month, this ran from $25 to $45! Another leg like that may take place.
I did post this in the weekend report as a buy. I hope you bought it on Monday, to get the best price..
CBWTF – I mentioned buying this last week. It Popped Monday, so I posted this chart at 9:43 a.m. as a BUY at support with it up 4% and …
CBWTF – Captured this at 11 a.m., now up 7%. These can explode, so buying it here is fine too, but…
CBWTF – It closed up 22% and OVER the 200sma. THAT IS HOW THESE MOVE. Big volume and it could just keep going. Why?
CBWTF OCTOBER 8th – I have pointed this chart out in the past. ‘Potential’ .
CBDS – Notice that it reversed off of the 50sma and broke above the 200sma, similar to that GORO chart. LOOK FOR THIS IF YOU ARE HUNTING FOR AN MJ STOCK THAT IS JUST BREAKING HIGHER. This was at midday, and I captured it to offer as a Buy, but it did continue higher into the close too. I want you to see these so you know how much they can move. This closed at $5.66. It can run to former highs at $8.50 or more. That is $4 to $8+ and it can happen quickly with these.
** CGC – This trades on the NYSE and looks ready to break out. You won’t believe this, but the first run was about $26-$56, so this could have another $30 run & it trades as a listed stock. Everyone can trade it, BUT KNOW THAT IT CAN ALSO DROP $4 in a single day too, and still be fine. THESE ARE TRICKY .
** CRON – THIS TRADES ON THE NASDAQ – I bought this even though it was up 13% Monday at $11.20. WHY?? Notice…
1. It is still very oversold .
2. These move so fast, this can run from $11 to $15 in 2 or 3 days honestly.
3. I like the 200sma & 50sma alignment( Similar to GORO).
4. Trades as a listed stock on NASDAQ
Please take another look at this CRON Stock, just so you know what we are dealing with. Excellent gains / big difficult swings. Since August, $5 to $13, to $9, to $13, to $9, to $15 to $9 . Now $9 to $11 in 2 days. Big gains, but big drops.
EMMBF – I also bought this and posted this in the comments Monday in the morning. Volume was already huge for 2 hrs of trading. You can see again the alignment of the 50 & 200sma and how it acted as support…
EMMBF – It closed higher but remains very oversold. It could still be bought here. The August run was 100% gains.
MSRT – JUST BREAKING OUT, OVERSOLD . Next chart…
MSRT BIG PICTURE – Look at this 1 year chart and you will see that this also has good potential. Last December is gained 300% in a month.
NXTTF – Again, I am just showing the 200sma & 50sma bullish alignment & support. If you see this and price is at that support, it is lower risk. You then can watch for a reversal and it is a buy. I Bought this yesterday too, because it closed above the 50sma Friday. This ran $1 to $3 in 1 month. 
NXTTF – It closed up 21%, but look at that December run. These can run for weeks.
OGRMF -This was a break out and still a buy, I posted this in the morning. I already mentioned that I own it and recommended it last week too. So this was a buy and…
OGRMF – It stretched out all day too. So now it is a bit more of a risk that if you enter it here, it may or may not pull back (Back test) before continuing higher. If you already own it, I expect higher price so just hold on.
**TLRY – Do you remember this crazy parabolic rocket ship? It also trades on the NASDAQ, and is moving again. That tiny move higher recently was actually a run from $125 to $163 in the last 3 days. This CAN return to the area of the recent highs.
**TLRY – I don’t know for sure how high this will run, but you may recall that on the last run, it hardly had 2 down days in a row. The sector is bullish again and it has also joined in. THIS IS NOT AN EASY RIDE, but it trades on the NASDAQ so I wanted to show it to the readers here as a trade opportunity.
