Wednesday – A Nice Set Up
After a quick review of the Markets, I want to discuss some really nice looking ‘set ups’ that have been playing out for the short term Traders and medium to longer term investors alike.
SPX – The SPX has broken down from the channel, the gap open seems to have back-tested it Monday, and I still think that we are coming due for a dip, plus…
TRAN – The Transports have been leading the way and may eventually drop to the 50sma.
GOLD – The timing for a low in Gold is here or close. This selling got somewhat deep, but not as deep as I would expect yet, so I am thinking that we will get another daily cycle. That would bounce up and sell off deeper than what we have seen in this 2 week sell off. A bounce here could back test that break down.
SILVER – Silver crashed down below the 50sma last Friday and then had 2 smaller days of selling this week. A DCL may be close.
GDX – We had a very long daily cycle from November- January (40+days), so this 28 day low COULD BE a dcl in a shorter daily cycle. That often happens to even things off. If someone wants to buy this reversal for a trade, a stop can be placed under day 28 and you can see what you get out of it. Notice that the first 7 days of the run off of the last tag of the 50sma was strong ( Magenta arrow).
AU – As pointed out before, some of the leaders have pulled back and AU is on the 50 sma again. Some Miners may hold up better than others, and this may bounce around the 50sma like KL did on the last ICL.
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Reminder : Wednesday is Oil Inventory report is released. Oil has gone sideways for a few days.
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I mentioned some Biotech stocks & Chinese Stock ( and especially Chinese Biotech stocks) that have been setting up and doing very well recently. Yesterday several continued to play out bullishly, so I am focusing on those a bit more. I want to point out a few more of the Chinese stocks that have been setting up after basing out too. These are making exceptional gains, so I will post some of these trade ideas and a few others ideas directly below.
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Enjoy your Wednesday trading.
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~ALEX
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ACB – This has been in the reports for weeks. It held the 200sma and turned upward with a nice 12% pop Yesterday. Hold on, I think that it can go further, I added yesterday when I saw the BIG volume in the first 15 minutes. I have mentioned before that this CAN eventually get to the prior highs of $12, but not in a straight line. It has been slightly choppy, but remained Bullish above the 200sma.
CGC – Here we seem to have a bull flag / pennant consolidation playing out. CGC ran from $25 to $50+ ( 100% in 1 month), so consolidation is normal. It could break out as soon as today, or it could follow the path drawn here. Both would be a buy.
TGODF- Speaking of ‘consolidation‘, I have also been pointing this one out for a while, and this Feb 12 chart showed a Bullish reversal / back test off of the 50sma as a buy. I added here, and hoped it would run straight to the moon, but…
TGODF – Slow and steady caused it to form a small inverse H&S. TGODF remains bullish and it was up another 6% today. Let’s zoom in…
TGODF – If I look at a close up of TGODF, this ran from $1.50 to $3.3o ish, dropped to the 50sma at $2.30, and has a minimal target of $4.10 ( or more). However…
I’d rather just look at this BIG Base in a Bull Market and expect a run to gradually reach $7.50. AS YOU HAVE NOW SEEN, these can be tricky, they do not always run straight up. Maybe it’ll be a bit choppy and not smooth, but over time a run to prior highs is possible with this sector being Bullish.
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ZIOP – I have been keeping my eyes on ZIOP & IDRA, and Midday I captured ZIOP here Sitting on the 20sma and then it reversed higher. It actually closed at $2.95, but I didn’t buy it because Earnings were released after hrs yesterday. Well, after earnings, it added 5 cents in after hrs. ( I skimmed the report and thought it was ugly, but it didn’t drop, so I’ll watch for a break higher. ). Draw a small trend line across the top of this flag and it is a buy with a stop under the 20sma.
LETs LOOK AT SOME OF THE CHINESE STOCKS – They had their own serious sell off last year, they based out, and they are hot.
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HUYA #1 – I posted a bullish 3 weeks tight on the weekly of HUYA when it was in the teens at the end of January.
#2 – The daily had it regaining the 50 sma too.
HUYA #3 – NOW WE SEE THE BASE. After back testing that 50sma, volume started flowing in and HUYA has been climbing like a bull. Yesterday alone it was up another 22%! From the teens to $27.96………..to $50 again? These are Bullish until they aren’t, so hold on during the consolidations and let’s look at more…
VIPS #1 – I recently caught the base of this Chinese Tech stock in Late December. It dropped from $12 to $5, but as our markets sold off, many of these were basing out. It caught my attention and this was a buy.
VIPS #2 – Another entry was the 50sma back test on Jan 15. As you know by now, I love these bases since they add fuel to the run higher.
VIPS #3 – It rallied and then dropped to the 50sma again. Now it has begun moving higher again. This Pop could be bought too, it could gain traction after that consolidation.
OPHT #1 – I pointed out on Feb 25 that the break out above the 50, the back test & Reversal off of the 50sma made this a BUY. Plenty of upside and earnings are out already.
OPHT #2 – This trade is slowly but surely working out too.
So what can be seen from this?? I have noticed that many of these Chinese companies had major sell offs. Then they based out and now they are continuing to act Bullishly. They are Bullish until they aren’t- so let’s look at a few more opportunities…
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LJPC #1 – I had my eye on this base last week and it began to rise on Monday, but I knew that they had earnings after the bell, so I waited. In after hrs I watched it Monday, and it sold off 50 cents after earnings release on low volume. Then Tuesday morning I saw it Gap Down & reverse. In the first hr of trading it start moving higher with Big Volume, so I bought it twice, and posted this in the comments. By 11 a.m., it was now pushing on the 50sma with very good volume…
LJPC #2– It closed up almost 11%, but this can move a lot higher. Will this just rip higher to $14 from $7 here? Well I’d love that, but…
LJPC #3 – It is possible that it will POP, bull flag, Pop, etc. BUY THE BULL FLAG IF IT DOES. Let me show you PLG also, since it is doing that now too.
PLG – THIS IS WHAT I AM REFERRING TO. Notice that the Big Pop didn’t just RUN AWAY, it has flagged along the way to the 9 ema. LJPC may do that too, I will add on the flags if it does.
PLG – by the way, what a nice large base PLG has been forming. This Platinum stock has a lot of potential, it can be considered a ‘Buy & Hold’ too, just as long as you can handle the sideways chop and keep track of when they release earnings over time.
NIO #1 – I have been discussing this one since January too. They call this the Chinese equivalent to TESLA. I liked the base and the push over the 50sma at $7. This was a buy in the $7 area . Well…
NIO #2 – If you bought it around $7, great! However, earnings release was last night, NIO fell and is down $1.50 in after hrs. It fell RIGHT TO THAT GAP at $8.25 at first & then moved higher, so we’ll have to see how that plays out. This may now need more time or it could drop , fill the gap , and reverse higher too. I am still watching this one in case it shrugs off the earnings report today or tomorrow.
YRD – Another Big sell off of a Chinese company formed a base. YRD has now a move from $10 to $16 and could be putting in a form of a bull flag at the 10sma ( $14). Is this a buy? Let’s zoom in…
YRD – So YRD is at support on the 10sma and trend line. It could be bought here at support. It ran $10 -$16 ( $6), so another run like that takes it to $20.
YY – I loved this base but had to pass on this POP. I saw this shoot up $4 at the open, but I didn’t buy it because I didn’t know when ‘earnings’ were due to be released. I looked it up and Earnings were released March 4th, but by the time I saw that it just kept climbing higher & higher. Here midday it was up $12 or 16% . This is another beautiful base and crawled above the 50sma. This is not a buy right now unless you are a scalping day trader, since it could pull back on you too. If it bull flags here however, you may get a chance to enter then. I love this base, but there are others, as you will see…
BIDU – Here is an old favorite. This is Bidu at a double bottom low, and earnings came out on Feb 21. Let’s zoom in and see if there are signs of bullishness.
BIDU – This was Midday, and it actually closed up another $1 higher, closing over the 50 sma with almost 6 million in volume. This is a buy with this move above the 50sma with a stop below the recent lows and it may be ready to go right now.
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I LOVE THESE CHARTS / BASES!!
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SOGO – I absolutely love charts like this , and often you can get in near the lows and just BUY & HOLD, though they may get choppy at times. SOGO released earnings in Feb, it should be all set to go. This is a $6 stock with BIG potential. I do not own it yet, but I like this set up a lot.
SOHU – I love this chart too, and it has back tested that 50sma twice. Let’s zoom in.
SOHU – Breaking out here is also a buy. I don’t own it, but I’d like to, WITH A STOP UNDER THE 50 SMA.
XNET – So this is another big base that played out well so far. I owned this and I still like it, but I had to leave my trading screen while holding it and tightened my stop under the 8 ema. I got stopped out on a big wiggle, but …
XNET – It flipped higher without me the very next day ( yesterday) and closed up 9%. This is the long term chart of XNET and you can see that those wiggles hardly show up unless you zoom in. These are not easy to ride, but this still looks great.
I still own TENX- it has simply gone sideways so far- long base though.
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