Wednesday Dec 12th – Stock Pickers Market
Nothing has really changed from yesterdays analysis, so after a quick review, I want to point out a few more trade ideas. In these choppy & directionless markets, you need to be a stock picker, to find the stocks that are acting correctly despite the market volatility. We have seen how Solar Stocks & certain Biotech / Pharma have done that, so along with those trades, I have found some other interesting charts to share.
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SPX – The markets Gapped open and dropped to once again close lower. As mentioned yesterday, day 28 may be fine for a DCL, but it seems that most come after 30 days, so we may have a day 28 low or this ‘could’ break to new lows again. Time will tell. This is a swing low, but it did not close above the 10sma.
This is what I said in yesterdays report- this is a copy / paste from yesterday. We had a reversal, but it may not be The Low. We are due for a low soon though, anytime now, but this is just another idea to keep us cautious.
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WTIC – Oil moved higher Tuesday. Wednesday is Oil inventory report release, and that often moves Oil .
XLE – The XLE gapped open and also sold down to close the gap. This is actually the area where I was stopped out of GUSH, so I could have re-entered Tuesday with a stop, but I passed again ( for now). I am trading other areas.
GOLD – We do have a swing high on day 17 peak. This could now start to sell down into a dcl, so anyone long should be aware of that, maybe think about raising or tightening stops, but…
GDX – We have seen swing highs in the past where price stalls at the top before dropping, so if you wanted to go short ( JDST, DUST) at this time, Miners have been showing a little more strength recently and could put in a choppy top, especially while they are above those moving averages.
So things did not change from Mondays analysis, you can re-read yesterdays report for a more detailed review. Below I will have a few interesting charts and trade ideas, and several of the ones from yesterday are still valid set ups too. 1. Some may be put on your watch list, since they may really do well when the markets are rising. 2. Others could be bought now for short term trades. As a reminder, under choppy conditions, always use stops and maybe keep the positions smaller than you normally would. So far, some of the Solar, many Biotech, and a few other trades like NBEV, etc are doing well.
Enjoy your Wednesday trading!
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~ALEX
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NBEV – Yesterday I discussed WTER and NBEV. I added to my NBEV position as it crossed the 50sma yesterday too. NBEV was up almost 20% at one point, but It did not hold the highs. This has happened on prior runs higher, so the set up remains bullish despite a late day pull back.
CRMD – CRMD actually dropped to the 10 sma yesterday and almost fully recovered.
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Yesterday I noticed some ‘Interesting” Activity in a few MJ Stocks. I prefer to see the whole sector set up bullishly, but I did take a few trades. I entered ACB & CVSI , along with MBEV.
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CVSI – So here we see that the CVSI Chart is trying to regain the 50 sma after a possible shake out. If the markets finally get a bounce out of a daily cycle low, maybe the MJ stocks will have another run higher. Let’s zoom in…
CVSI – Volume also increased on upside moves, so it may do an a-b=c-d type move. That is also known as a ‘similarity move’, when one push higher is similar in length to the prior one. That happens a lot in the markets .
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THIS IS SOMETHING THAT I FOUND TO BE INTERESTING TOO
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TWTR – The Stock Market (NASDAQ) is back at the October lows, but TWTR moved from $26 at the October lows to almost $36 in at October highs, and now it is still at $34 and looks ready to break out even higher. And…
TWTR – I stepped back and saw
1. A large inverse H&S formed
2. With price now above the 50sma, and
3. The 50sma is already curling upward. This looks Bullish now.
Conclusion?: TWITTER broke down earlier than the markets, back in July, and it is possible that some of the companies that broke down early may have exhausted their sellers for now. I’m going to keep an eye out for this in other areas too. They may become leaders and I would certainly say that this chart of TWTR is more bullish than the markets themselves. Look at the chart of TWTR above again. It looks to be leading the way out of current sell off lows with higher lows now on the 50sma.
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A while ago I mentioned that some Chinese stocks sold off first and could recover quicker after the Tariff talks.
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UXIN – This was a Chinese IPO and it just rocketed out of the December lows. This has actually been a real blast higher, from $3 to $6 in just 4 Days. It is a Chinese IPO. This is on my watchlist, to try to figure out a good entry spot. It just crossed the 50 sma, so this might be a good spot to buy, but I already have several positions open. I may personally just watch & wait for a bull flag if it slows down? It is tricky, because the last couple of market down days did not affect this one and it ‘Could’ technically just run straight to $10 from this V-Bottom.
WBAI – Another Chinese Tech stock that is now ignoring Tech selling by putting in a base over the past few weeks. It just broke above the 50 sma too.
AAC – Earnings release during the market sell off caused a drop from $7 to $2 for AAC. It dropped $10 to $2 in 2 months. It then based out and popped yesterday, and this looks like it could run to the 50sma and possibly even run to fill that gap. That was a VERY TIGHT BASE, and I usually like that. Lets zoom in…
AAC – A very tight base at $2 . This is just another view of AAC without the 50sma, and just using the 8 ema. It is a round bottom base and it does look ready to continue higher right now , as it springs from a tight base with increased volume.
ATHX – Cardiovascular neurological repair is a big part of this companies health endeavors. This is a nice long base, but it is a bit choppy. Even so, so it would be easy to buy with a stop. The way I look at this is that it looked ready to break above the 50sma in September, but then the markets dropped. This stock did not break down, it just re-entered the base and now looks ready to break out over the 50sma and could begin to trend higher again. I would call this a short term buy.
