Dec 13th – Mainly Picks
The outlook for the Markets has not changed from my prior reports with the trading on Wednesday, so today we will mainly look at some more Picks. I also want to look at Oil and cover something important with the Miners, so let’s begin, this is a long report…
WTIC – I just wanted to mention that you can see that at times, OIL sells off and when it puts in a low, it is not a V-Bottom. Right now, Oil is still choppy & that can be frustrating.
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NATGAS – This is a break down of that bull flag, so this will probably drop to the 50sma, and it could even collapse and bounce its way down to the 200sma. That would end the parabolic ramp ( I thought it had one more leg after the bull flag)..
I HAVE REPEATEDLY MENTIONED THAT GOLD HAS BEEN MORE BULLISH THAN SILVER & MINERS, BUT MINERS ARE WEAK AND NEED TO CATCH UP. IT SEEMS THAT THEY ARE NOW DOING A LITTLE BIT OF CATCHING UP. LET’s REVIEW THIS SECTOR TO STAY CURRENT.
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GOLD is at a resistance point and it is coming due for a drop into a cycle low. It is also within the ‘timing’ for that drop, so it could stall here and drop soon.
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LET ME SHOW YOU AGAIN SOMETHING THAT INDICATES THAT MINERS HAVE BEEN EXPERIENCING A CHANGE OF CHARACTER.
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AU #1– IN OCTOBER, this was one of our leaders running higher, consolidating, and running higher again. This is the kind of bullish action that you want to see in Miners, but others were at their lows and lagging.
AU #2– It continued sideways to the 50sma area and broke out last week. This is another strong run. It is only at $12, and as mentioned before…
AU #3 – Back in early November I showed how AU can run to the $20’s and then some, but my point is that some are leading and others may be playing catch up. Now let’s look at GDX…
GDX #1 – DAY 19. This is actually a progressive base and since it bottomed in September ( not Aug like Gold), it may even run higher before dropping if Gold stalls at resistance, since some Daily cycles can run to a peak on day 22, 23, 25 or so. I say this because Many Miners look more Bullish, and this is a series of Higher highs and higher lows. Read the chart…
THIS NEXT CHART IS AN EXAGGERATION:
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GDX #2 – NOTE: This chart may be a bit exaggerated. We have seen AU, KL, AEM, ABX, etc running strong, while many others lag. Well, it is not impossible for other Miners to start catching up, like GG, NEM, etc., so I am drawing a Bullish possibility that is still within cycles timing. WE MAY JUST DROP HERE IF GOLD DOES, since this has been an EXTREMELY Choppy base.
GDXJ – So using this chart in the weekend report, I mentioned how GDXJ is still at the very lows, while AU, KL, etc are running so strongly. I said that it either needs to play catch up, or it may just continue to chop around & eventually drop into a DCL ( Then ICL).
GDXJ – Suddenly GDXJ popped and wants to play catch up? This broke & closed over the 50 sma with strong volume. Juniors like EXK, PLGC, PVG, etc Popped fairly nicely too. Volumes came in on both GDX & GDXJ too. THIS LOOKS MORE BULLISH AT THIS POINT. 
I still keep the ‘2015 Complex Base’ similar to this in the back of my mind, since it looked just like GDXJ now (That one crashed quickly in January). A stop will help if we get that sell off. Let’s look at a few stocks…
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ARE ANY JUNIORS LOOKING READY TO MOVE HIGHER?
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EXK – 11% Gain off of the bottom, and this closed here with 1.4 million ( This was captured over an hr before the close). Bullish.
EXK – The bigger picture shows EXK trying to break from a base at the lows and a down trend. This may or may not be ready to run to that 200 sma.
IAG – IAG also popped on Wednesday to resistance. It closed up 6% and is pushing on the 50sma. If Juniors like EXK & IAG break higher, you can see how GDXJ could continue higher too. If not, they certainly may on the next run.
WPM – I am seeing big divergence on Many Miners, and WPM is also breaking above the 50sma.
SO I WANTED TO MENTION THAT SEVERAL OF THE LAGGERS IN THE JUNIOR MINING SECTOR MAY BE TRYING TO PLAY CATCH UP AND LOOK TO BE PUSHING ON THEIR 50sma. IF THEY CONTINUE BREAKING FROM THEIR SIDEWAYS CONSOLIDATION, THERE IS STILL ‘TIME’ LEFT FOR THIS TO MOVE A BIT HIGHER, EVEN IF GOLD JUST STALLS AT RESISTANCE.
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Can you buy IAG or EXK or another Miners if they break out? If you do, you need to use a stop and keep position size reasonable, since timing for a dip to a dcl is due. I mentioned that I bought BTG the other day, and it didn’t break out yet, but it still looks ready too. It is hard to recommend a Miner on day 17 or 19, but these can POP & RUN fast in a couple of days, so they could be a good shorter term trade. See the chart of AU again, for proof.
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See the chart of AU again, for proof….this was a good short term trade on the break out, but it could back test that 50sma at a dcl. That will be the next buy point.
I have also been “Stock Picking’ and finding Bullish stock set ups within this choppy market, since the ETFs have just been chopping around. Many stock picks have really been playing out well, so I am going to cover some of the past plays, and discuss a few new ones too.
Enjoy your Thursday Trading!
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~ALEX
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YOU CANNOT TRADE ALL OF THESE, AND I CAN NOT TRADE ALL OF THESE. IF YOU SEE SOME THAT YOU LIKE – PUT IT ON A WATCH LIST!
I HAVE TO SHOW THESE PICKS FROM YESTERDAYS REPORT FIRST . IF $YOU SEE THE PICKS PLAYING OUT, YOU MAY TRUST THEM MORE. 🙂
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WBAI – I posted this breaking the 50sma while the markets sold back to the lows. It was a buy here…
WBAI – BOOM! This was $8.25 to $10.25 , but then sold off a bit. I would still hold it, this can run in my opinion. If it slowly backtests that 50sma, That is a BUY again.
UXIN – This broke above the 50sma, and I said that it could just keep going or flag, and I wanted to look for an entry. This went $3 to $6 in 4 days, so I wanted in!
UXIN – WHOA! Make that $3 to $9 in 5 days. I missed this one, maybe I will buy the pull back.
SYRS – I posted this as a Biotech BUY breaking above the 50sma, and it is still moving higher nicely. I think that it can run to former highs, so I buy & hold these.
UBX – I bought this in the $13 area as it crossed the 50 sma. It is a slow and steady winner, hitting $15.80 . That volume makes this look like it could accelerate too. If it pulls back to the 10sma , it could be bought.
TWTR- This was a BUY in yesterdays report.
TWTR– My first target is $40, but it can go higher.
NDEV– And I bought NDEV, and some have followed me in asking what my target is. I expect a cup to form, if this sector remains bullish. I pointed out WTER as an example and it exploded higher. Feel free to lock in gains anywhere along the way, or sell partial positions, but at this point, I bought it and added so far.
DO ALL OF THE PICKS WORK OUT IMMEDIATELY? NO…
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AAC #1 – DO you remember this one? I really like the rounding bottom base and the gap. But do ALL of my picks take off higher immediately? no…
AAC #2- That doesn’t mean that it has gone bad. This fell to the 8 ema on 1/2 of yesterdays volume, and I still like it. I am going to watch it Thursday, and maybe take a position. It is risky, but $2.50 to $6 looks pretty attainable if this runs to the gap.
ATHX – I posted this one too, and you can see that it also reversed, but that does not make this a fail. It is a long base and could be back testing the break out of the 50 & 200 sma. I like this a lot for a watch list.
BITA – I was going to post BITA yesterday at the 50sma, but I had so many charts that I had to leave some out. This barley broke the 50sma, so I waited.
Notice that it just ran from $16 to $20. Thursday it extended beyond the 50sma and…
BITA – In the past this has made Great Gains. May to June was $18 to $31. IT can be bought with a stop under the 50sma.
I have been pointing out PHARMA / BIOTECH Stocks that are setting up & acting correctly. Many look Bullish. MORE PHARAMA / HEALTH/ BIOTECH STOCKS …
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ARWR – Pharma. This is another Great Runner, $6 to $22 . Yesterday it popped above the 50sma and above the wedge. Look how quickly this just ran from $11 ish to over $15 this month. I almost bought this pop today, but I have 10 positions and do not want more than that.
ATHX – I also almost bought this POP today, and I am kicking myself for not buying it. If it drops Thursday, I will look for an entry, and sell my CRMD for profit. This looks ready to go.
KNSA – Some of these Pharma stocks are just crazy. This had a solid run higher in August & September. It dropped and is forming a cup. This has already moved from $16 to $24 since the Nov lows. This looks like a bull flag, and that can be a midpoint pause. That would be another $8 upside to finish the cup.
SURF – Another Medical/ Biotech company. I think that SURF is almost finished basing too. It is a buy right above the 50sma here.
SYRS – Again, I pointed this out as it crossed the 50 sma too. It is having follow through so hold if you own it, or buy the dips if they are orderly & to a support area.
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A LESSON: LET’S TALK ABOUT THE MJ STOCKS
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I have mentioned NBEV, WTER, CVSI, ACB, etc recently as at least short term bullish. Let me show you exactly what I am looking at for starters, and then we re-examine as time goes on.
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GTBIF #1– With a stock like GTBIF, the bounces are actually $4 gains! So I would watch this as it approaches the 50sma. That alone is a good trade. That is part 1…
GTBIF #2 – IF something more is going to play out, you will then gradually see a higher low, and a higher high. That $4 bounce may break the 50sma, and that breaks the symmetry of the $4 run, giving a higher high. This could begin to form a cup like this. That is Part 2…
GTBIF #3 – With MJ stocks, at times we get the “RUSH TO GET IN” type move, as seen in August – September. That makes a much steeper move higher, almost straight up. So I take these a step at a time, and look for signs along the way.
ACB #1– That discussion leads me to ACB. It had closed above the 50sma, as a buy…
ACB #2 – And I want to see if I get a symmetry move out of ACB too. This sector started to align bullishly, and is now many are starting to break higher.
If you do some reading about the HEMP LAW that passed in the U.S.- Hemp is no longer considered a controlled substance, and with that many products like CBD infused products can now be sold everywhere. This is another growth area, and profits are already rapidly increasing in many companies.
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HIPH #1 – So here I have a penny stock that jumped & doubled in 2 days. Let’s step back…
HIPH #2 – 1 cent to 13 cents, and a pull back . Not everyone wants to trade penny stocks, but for those that do ( keep positions reasonable), this COULD, MAYBE, MIGHT, POSSIBLY, run back to the former highs. If so, that is 200% gains from 4 cents. DO NOT put money in these that you can’t afford to lose, these get choppy too.
RLBD – Real Brands has made some deals in the CBD Infusion market, so it ran from 1 cent to 20 cents ( huge %-Gains) and went sideways to the 50sma. I captured this at 10:30 a.m. and then…
RLBD – It popped 11% in 10 minutes with this tiny move, so you see that these can move FAST IN BOTH DIRECTIONS.
MNGA – ENERGY – Keep this on a watch list if you are interested. It Popped from 23 cents to 53 cents and then pulled back, but the base seems orderly, and it could break out & run again, maybe a bit more gradually and sustainable this time.
YOU CANNOT TRADE ALL OF THESE, AND I CAN NOT TRADE ALL OF THESE. IF YOU SEE SOME THAT YOU LIKE-PUT IT ON A WATCH LIST! I HAVE A SMALL NOTEBOOK THAT I ACTUALLY WILL WRITE:
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“WATCH THESE CHARTS DAILY FOR A BREAK OUT”
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” BUY A BACK TEST OF THE 50 SMA”
